Appetite for property risk rising in Sweden, says Catella

Catella’s Real Estate Debt Indicator (CREDI) gained through the third quarter of 2013 against the previous quarter, the Swedish company said.

The indicator gained 4.4 points to a new all-time high of 69.3, which represents a positive trend in terms of expectations.

The gain comes after a rise in property related activity in the Swedish market through the summer, with suggestions that it has been driven by an improving financing environment.

Daniel Anderbring, research analyst, said: “The increasing availability of loan financing has supported liquidity in the Swedish real estate transaction market. Since May we have seen a surge in transactions and it is evident that both banks and investors share a rising appetite for risk on the back of the broader economic recovery.”

Catella’s figures show that average loan-to-value rose 0.8% to 54.1% during the most recent quarter, which represents a reversal of the deleveraging trend seen since 2009.

The next CREDI will be published in December 2013. CREDI consists of two parts: one is a survey and the other a set of indices.


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