Low interest rates and good access to funding, volatile global stock markets and low yields in the bond market are contributing factors to the great interest in Nordic property markets, according to the spring edition of Newsec Property Outlook.

The firm says that Sweden has the most potential thanks to major demographic changes taking place in the country.

Max Barclay, MD at Newsec in Sweden said: “Newsec estimate an investment requirement of more than SEK 1,500bn (£126bn) is needed in residential property between now and 2030.This is a result of population growth, which will be a major challenge for the Swedish property sector and Sweden at large.”

Sweden, along with the rest of Europe, face major demographic changes with significant refugee flows, historically high birth rates and an aging population. The Swedish population is estimated to have increase by 2% last year with the same growth forecast for 2016, mainly as a result of immigration. These changes in population will entail serious consequences for the property sector over the next 15 years.

The Swedish Riksbank decided to cut the interest rate further to -0.5% at its last meeting in February. The latest rate cut strengthens an already very strong Swedish property market. The low interest rates and good access to funding is expected to continue until at least the end of 2017, Newsec stated.