CapMan RE: Nordic real estate offers resilience and growth

While much of Europe's real estate market remains in a state of cautious transition, the Nordic region is emerging as a dynamic hub for recovery. 

Illka Tomperi

With a transaction volume that consistently positions it as the third-largest market in Europe—surpassing France and trailing only the UK and Germany—the Nordics now represent roughly 13% to 16% of total European activity.

At MIPIM 2026, CRE Media Europe sat down with Ilkka Tomperi, CEO of CapMan RE, to discuss why the region’s "basic needs" sectors—residential, social infrastructure, and hotels—are providing a sophisticated hedge against global volatility.

The Nordic market (comprising Finland, Sweden, Denmark, and Norway) is currently outperforming the EU average in GDP growth, with rates more comparable to those in the US. This growth, paired with growing populations and healthy public finances, is driving a robust recovery in real estate demand.

While Sweden and Denmark remain the largest and most liquid markets, Tomperi notes that Finland is seeing a surge in "state assets" trading, while local institutions in Sweden are beginning to re-enter the office sector—albeit selectively.

CapMan RE’s plans for the coming year are focused on sectors that are resilient to "black swan" events. The firm is heavily active in residential assets, moving beyond traditional income-producing properties into "value-add" territories like refurbishing older stock to enhance sustainability and rental yields.

A significant shift is also occurring in social infrastructure. Traditionally owned by local governments, schools and public buildings are increasingly opening up to private capital.

One of the most compelling parts of the Nordic model, according to Tomperi, is how it handles sectors often perceived as high-risk, such as hospitality. As the second-largest private hotel owner in the Nordics, CapMan RE utilises a lease-based model rather than an operating contract.

"In the Nordic model... many hotels are actually based on a lease contract, not an operating contract. That is a big differentiating factor... we are securing like 80% to 90% of the total rental income with a lease contract which is inflation-linked."

Despite the optimism at MIPIM, the shadow of geopolitical tension in the Gulf and the risk of spiking inflation loom large. However, Tomperi remains confident that a focus on "basic needs" provides the ultimate safety net.

"If you are investing in the basic needs of the people... that demand is not disappearing. It’s not something that is turning around because something happened somewhere, or a president somewhere says something. It’s not changing the game."

Branislav Pekic