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Sweden Property Firms Risk Fire Sales, Handelsbanken Warns

  • Decline in real-estate valuations may lead to asset sales
  • Bank now sees Swedish home prices falling 19% from peak
Updated on

Sweden’s beleaguered real-estate companies may have to resort to fire sales and new share issues as the sector faces risks of rising vacancies and a projected 15% slump in property valuations.

That’s the view of economists at lender Svenska Handelsbanken AB, including Christina Nyman, who said in a sector report that larger commercial landlords in the country could be forced to offload properties under “a more adverse scenario.”