In the latest edition of the bi-annual property report - Newsec Property Outlook – the largest property consultant in the Nordics, Newsec, explores the challenges facing the Nordic and Baltic region with focus on the real estate market.

The Nordics and Baltics remain exposed to U.S.–EU trade frictions, demographic shifts, and defence realignments. Yet, the report emphasizes that the region’s high productivity, efficient labour markets, and globally competitive industries enable it to weather shocks better than much of Europe. In real estate, this translates into steady demand for logistics hubs, offices, and urban residential development, even under heightened uncertainty.

“We can see a clear trend that the Nordics and Baltics are becoming relatively more attractive to international real estate investors. Given the current geopolitical uncertainty, this trend is likely to continue. We are already seeing investors turn their attention more towards the European market — and the Nordics in particular — at a time when uncertainty in the U.S. is so pronounced,” said Max Barclay, CEO Newsec.

In addition, the report concludes that when climate pressures rise elsewhere in Europe, the Nordics and Baltics benefit from a cooler, more stable environment, strengthening their position for long-term capital. At the same time, low corporate tax rates, ease of doing business, and world-leading transparency continue to attract international investors.

“All of this adds up to and results in the fact that the region consistently outperforms larger European markets in real estate transactions on a per capita basis, reflecting enduring investor confidence,” said Max Barclay.

The report also shows that defence investment is set to reshape demand patterns, with warehouse and logistics needs projected to nearly double by 2035. Meanwhile, healthcare,

senior housing, and climate-adapted infrastructure represent growing segments as demographic and environmental realities reshape urban development.

The report outlines three scenarios for the coming decade — from limited trade friction to full-scale geopolitical fragmentation. In each case, the Nordics and Baltics retain a strategic advantage: converting global hazards into opportunities.

“In a world marked by volatility, predictability is a premium. The Nordic and Baltic real estate markets offer exactly that — a blend of resilience, transparency, and long-term opportunity,” said Max Barclay.