After a strong first half of 2022, the investment market has slowed down significantly in the latter part of the year. The investment volume for the last quarter of 2022 slightly exceeded SEK 50 billion, dipping below the 10-year average for the period. The largest volume was registered in the office sector (28% of the total volume), followed by education (25%) and industrial (19%). International investors have captured around 35% of the volume in the final quarter of the year, which is the highest quarterly share since the beginning of the year.
As for the whole year 2022, the total volume neared SEK 200 billion, making it the fourth largest volume on record. Transactions representing a quarter of the investment volume have been conducted within the industrial sector. Residential has been the second largest sector capturing 23% of the total volume, followed by office with 17% share. 2022 has seen less activity from the international investors, when compared to the last five years, with nearly 81% of the volume comprised of transactions conducted by a Swedish purchaser.
As investors face increased financing and transaction cost the yields continued decompress across the Swedish real estate market, reaching 3.5% (Office), 4.15% (Shopping Centres) and 4.4% (Logistics).