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Yes, the analysis of Stockholm's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Södermalm? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Östermalm or Vasastan where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Stockholm Property Pack.
Will property prices increase in Stockholm in 2025?
Yes, property prices in Stockholm are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Stockholm remains one of the most attractive cities in Europe for both domestic and international investors.
While there are some economic challenges like inflation and potential interest rate hikes, the main drivers behind Stockholm’s price growth remain strong.
Demand, especially in the central and desirable suburban areas, continues to outpace supply, making any significant price declines unlikely. Additionally, Stockholm's reputation as a tech and innovation hub continues to attract a diverse range of buyers.
Signals pointing to a property price increase in Stockholm
Here are some factors suggesting prices could increase:
The ongoing urbanization trend in Sweden is expected to continue, with more people moving to Stockholm for job opportunities, thereby increasing demand for housing in the city.
Stockholm's limited land availability for new developments, particularly in central areas, is likely to keep supply constrained, pushing property prices higher.
The Swedish government is expected to introduce policies to stimulate the housing market, such as tax incentives for first-time buyers, which could boost demand.
Stockholm's strong economic performance, driven by its thriving tech sector, is likely to attract more international investors, increasing competition for properties.
Infrastructure improvements, such as the expansion of public transport networks, are expected to enhance connectivity and make certain areas more attractive, driving up property values.
The trend of remote working is likely to continue, with more people seeking larger homes in suburban areas of Stockholm, increasing demand in these regions.
Stockholm's reputation as a cultural and educational hub continues to attract students and professionals, maintaining a steady demand for rental properties, which can drive up purchase prices.
Signals pointing to a property price decrease in Stockholm
Here are some factors suggesting prices could fall:
Potential increases in interest rates could make mortgages more expensive, reducing the purchasing power of potential buyers and cooling demand.
Economic uncertainties, such as inflation and global market volatility, could impact consumer confidence and slow down the housing market.
If new housing policies are not effectively implemented, the lack of affordable housing options could deter first-time buyers, reducing demand in certain segments of the market.
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If property prices go up in Stockholm, how much would they increase by?
If real estate prices in Stockholm were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in stable, mature markets like Stockholm appreciates by approximately 2% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Södermalm for 8,500,000 SEK today, don't be surprised if it's priced between 8,755,000 and 9,095,000 SEK this time next year.
To give you a better understanding, here is a table that shows 7 types of Stockholm real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 2%, 5%, and 7%.
| Type of Property | Average Price in 2024 (SEK) | Price in 2025 (2% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Classic Apartment (60 sqm / 646 sqft) | 9,000,000 | 9,180,000 | 9,450,000 | 9,630,000 |
| Modern Apartment (75 sqm / 807 sqft) | 12,000,000 | 12,240,000 | 12,600,000 | 12,840,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | 25,000,000 | 25,500,000 | 26,250,000 | 26,750,000 |
| Studio (30 sqm / 323 sqft) | 4,500,000 | 4,590,000 | 4,725,000 | 4,815,000 |
| Loft (80 sqm / 861 sqft) | 16,000,000 | 16,320,000 | 16,800,000 | 17,120,000 |
| Townhouse (150 sqm / 1,615 sqft) | 35,000,000 | 35,700,000 | 36,750,000 | 37,450,000 |
| Investment Property (50 sqm / 538 sqft) | 7,500,000 | 7,650,000 | 7,875,000 | 8,025,000 |
Everything you need to know is included in our Property Pack for Stockholm
If real estate prices go up in Stockholm, which areas are likely to see the biggest increases?
Today, people who want to move to Stockholm desire the charm of the city, but they also want modern conveniences and vibrant social scenes, which Södermalm delivers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Hornstull has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Stockholm market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Södermalm | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Östermalm | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Stockholm. |
| Kungsholmen | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Kista | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Vasastan | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Gamla Stan | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Hammarby Sjöstad | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Hornstull | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Solna | Medium-High | Its proximity to Stockholm, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Sundbyberg | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Djursholm | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Djurgården | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Stockholm
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Stockholm?
In 2025, Stockholm real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Stockholm are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Stockholm, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Stockholm's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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