Authored by the expert who managed and guided the team behind the Sweden Property Pack
Yes, the analysis of Stockholm's property market is included in our pack
What is happening in Stockholm’s real estate market? Are prices climbing or stabilizing? Is the city still a magnet for international buyers? How are Sweden’s policies shaping the real estate landscape in 2025?
These are the questions we hear every day from industry experts, potential buyers, and sellers, from Södermalm to Östermalm and beyond. Maybe you’re curious about these trends too.
We understand this because we maintain close connections with local professionals and individuals like you, exploring the Stockholm real estate market daily. That’s why we crafted this article: to deliver clear insights, thoughtful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed something or could improve, we’d love to hear your feedback. Feel free to message us with your thoughts, and we’ll strive to enhance this content for you.
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1) Foreign investment will increase in newly developed areas with strong growth potential
In recent years, we've seen a noticeable increase in foreign investment in newly developed areas with strong growth potential, particularly in places like Stockholm. This trend is largely driven by several key factors that have emerged over the past couple of years.
First, the statistics on foreign property investments have shown a significant rise. For instance, in 2024, foreign investors accounted for 19% of the total investment volume in Sweden's market, with a growing interest in sectors like residential and industrial/logistics. This indicates a clear trend of increasing foreign participation in the market.
Moreover, the development of infrastructure and amenities, such as the New Slussen Masterplan in Stockholm, has made these areas more attractive. This project, which includes modern transport links and cultural amenities, enhances the appeal of the city to international investors looking for vibrant and well-connected locations.
Additionally, Stockholm's strong economic growth and job creation, as reported by the OECD, further bolster its attractiveness. With the highest employment rate in Sweden and labor productivity well above the regional average, the city presents a robust economic environment for investment.
Sources: Savills, Foster and Partners, OECD
2) Newly developed areas will see higher rental yields as they attract young professionals and students
Rental yields in newly developed areas are on the rise as they become hotspots for young professionals and students.
Take Stockholm, for instance. The city is buzzing with activity, and the demand for rental properties is soaring. In the central business district, average monthly rents hit SEK 9,250 per square meter by late 2024. This surge in interest is a clear sign that rental yields are set to climb.
Stockholm isn't just a pretty face; it's a magnet for people from all over. Young adults are flocking to the city, drawn by its vibrant lifestyle and opportunities. With four major universities in the area, there's a constant influx of students and young professionals, all looking for places to live.
The Swedish government is also playing a part in this trend. They're investing heavily in infrastructure, making these new areas even more attractive. Enhanced public transport and amenities like parks and shopping centers are popping up, making life easier and more enjoyable for residents.
These developments are not just about convenience; they're about creating communities. Young professionals and students are drawn to neighborhoods that offer a mix of work, play, and relaxation. This blend is what makes these areas so appealing, and it's why rental demand is on the upswing.
As these areas continue to grow and evolve, the potential for increased rental yields is significant. The combination of a young, dynamic population and improved infrastructure is a recipe for success in the rental market.
Sources: Savills Sweden Office Report, Duke University Press, Stockholm Business Region
We have made this infographic to give you a quick and clear snapshot of the property market in Sweden. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Virtual reality tours will increasingly feature in property listings to attract tech-savvy buyers
Virtual reality tours have become a staple in property listings, especially for tech-savvy buyers, due to several compelling reasons. First, the global market for VR in real estate has seen a significant rise, with projections reaching $2.6 billion by 2025, up from $800 million in 2020. This growth indicates a strong trend towards adopting VR technology in the real estate sector.
In Stockholm, the virtual tour market was valued at $10.52 billion in 2023, and it continues to expand. This growth is largely driven by young adults, particularly those aged 18 to 34, who are 130% more likely to book a property if they can take a virtual tour first. This demographic shift is making virtual tours a standard feature in property buying.
Moreover, consumer surveys reveal that more than half of adults have taken a virtual tour, and 67% of home buyers prefer listings that offer this feature. The convenience and time-saving benefits of virtual tours are evident, as potential buyers spend significantly more time on websites with virtual tours compared to those without. This allows buyers to explore properties from the comfort of their homes, even from different countries.
Sources: PhotoUp, EZ Real Estate Tools, Business Sweden
4) Areas with strong cultural and entertainment offerings will see rising demand from foreign buyers
In recent years, Stockholm has seen a notable increase in international tourism, with 7.53 million international tourists visiting in 2023, marking a 13.5% rise from the previous year. This surge in visitors highlights the growing appeal of Stockholm's cultural and entertainment offerings, which are drawing more international attention.
Stockholm's vibrant cultural scene, including its music, museums, and theaters, plays a significant role in attracting international audiences. This cultural richness is similar to what makes cities like New York City and Paris popular among foreign buyers, suggesting that Stockholm could see a similar trend in property demand.
Moreover, media coverage and social media trends frequently showcase Stockholm's cultural and entertainment scene, further enhancing its visibility and attractiveness to a global audience. This increased exposure can lead to more foreign buyers being interested in living in such a dynamic urban environment.
Additionally, the city's investment in cultural infrastructure, such as new museums and performing arts centers, demonstrates a commitment to enhancing its cultural offerings. This investment not only boosts Stockholm's appeal but also indicates potential growth in property demand from foreign buyers who prioritize cultural amenities.
Sources: Road Genius, World's Best Cities
5) New regulations will boost demand for sustainable properties by favoring eco-friendly developments
Stockholm is becoming a hub for eco-friendly development thanks to new regulations and climate goals.
The city's Climate Action Plan 2020-2023 has laid the groundwork for these changes, focusing on reducing greenhouse gas emissions and promoting renewable energy. This plan has created a favorable environment for sustainable properties, encouraging developers to prioritize energy efficiency and sustainability.
A standout project influenced by these regulations is the Stockholm Wood City, set to be completed by 2027. This ambitious development will feature thousands of office spaces and homes built with sustainable materials and technologies. The project’s emphasis on energy efficiency and a reduced carbon footprint aligns perfectly with the city's goals, highlighting the growing demand for eco-friendly developments.
Stockholm's media is also playing a crucial role by actively promoting the benefits of sustainable living. This has led to increased public awareness and interest in eco-friendly properties, with more real estate listings now highlighting sustainability features.
As a result, there's a noticeable shift in consumer preferences towards properties that align with these eco-friendly values. This trend is further supported by the city's regulations, which are pushing developers to innovate in sustainable construction.
With these developments, Stockholm is setting an example for other cities, showing how regulations can drive demand for sustainable properties and create a more eco-conscious urban landscape.
Sources: Climate Action Plan 2020-2023, Stockholm Wood City, Sustainable Stockholm
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6) Properties near international schools and amenities will attract more foreign buyers
Foreign buyers are often drawn to properties with easy access to international schools and amenities because these features cater to their lifestyle and family needs. In recent years, international schools in Stockholm, like the Stockholm International School, have seen a steady increase in enrollment, indicating a growing demand for international education. This trend suggests that families moving from abroad prioritize educational opportunities for their children, making nearby properties more attractive.
Neighborhoods such as Östermalm and Vasastan are particularly popular among expats due to their proximity to international schools and a variety of amenities. These areas not only offer educational benefits but also provide a blend of elegance, luxury, and cultural heritage, which appeals to both families and professionals. Real estate market reports have shown that properties in these neighborhoods often command higher prices, reflecting their desirability and exclusivity.
Moreover, surveys among expatriates consistently highlight a preference for areas with international amenities, including good schools, cultural activities, and diverse dining options. This preference is echoed by real estate agents who report that foreign buyers are willing to pay a premium for properties near international schools, as these locations offer convenience and a sense of community for international families.
Sources: International Schools Database, Expatsi, Hemavi Blog
7) Suburban rental yields will dip slightly as favorable mortgage rates encourage more people to buy homes
In Stockholm, homeownership is becoming increasingly popular due to attractive mortgage rates.
Many people are now considering buying homes instead of renting because banks and the Swedish government have made mortgages more accessible. This collaboration has led to a rise in mortgage applications and approvals, encouraging more individuals to take the plunge into homeownership.
With banks offering lower mortgage rates, the financial incentive to buy rather than rent is stronger than ever. This shift is particularly noticeable in suburban areas, where rental yields are expected to decline slightly as more people opt for buying homes.
Consumer surveys reveal that a significant number of Stockholm residents are planning to purchase homes, which could further reduce rental demand in the suburbs. The real estate market is stabilizing, making it a more appealing time for potential buyers to enter the market.
As the rapid growth phase of the housing market cools off, the environment becomes more favorable for buyers. This trend suggests that the preference for homeownership over renting will continue to grow.
In the coming years, suburban rental yields may see a slight decline as more people take advantage of the favorable conditions to buy homes.
Sources: Global Property Guide, The Mortgage Reports
8) City center rental yields will rise as business travelers boost demand for short-term rentals
Rental yields in the city center of Stockholm are likely to increase as demand for short-term rentals rises among business travelers. This is primarily because the number of business travelers visiting Stockholm has been on the rise, driven by the city's robust economy and business-friendly environment. As more business travelers seek short-term accommodations, the demand for these properties increases, which in turn drives up rental yields.
The occupancy rates for short-term rental properties in Stockholm have been notably high, with a median rate of 66%. This high demand for short-term rentals suggests that property owners can charge more, leading to higher rental yields. Additionally, the average daily rate for short-term rentals in Stockholm was €106, a significant figure that reflects the strong demand and potential for increased rental income.
Moreover, short-term rentals have been reported to generate double the monthly cash flow compared to traditional long-term rentals, making them a more profitable option for property owners. The growth of platforms like Airbnb has further facilitated the short-term rental market, making it easier for property owners to capitalize on this demand. As business travelers increasingly prefer flexible accommodation options, the demand for short-term rentals is expected to continue rising, supporting higher rental yields.
We made this infographic to show you how property prices in Sweden compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Rental yields in older, unrenovated properties will drop as tenants prefer modern amenities
Tenant preferences are shifting towards modern amenities in rental properties.
In places like Hammarby Sjöstad, where many residents are under 40, there's a growing attraction to eco-friendly living. This younger crowd is drawn to updated and energy-efficient homes, reflecting a broader trend in urban areas. Property developers are catching on, pouring resources into smart home technology to meet this demand.
Take K9 Coliving in Östermalm, for example. It's a co-living space that offers modern facilities and a community-driven lifestyle, which is a big hit with young professionals. These spaces are not just about having a roof over your head; they're about creating a lifestyle that resonates with today's renters.
In Stockholm's CBD, newly renovated properties are fetching higher rents. This shows a clear preference for modern and well-maintained spaces. Tenants are willing to pay more for places that offer the latest amenities, and they're not shy about voicing their dissatisfaction with outdated properties.
Reviews often highlight the importance of modern amenities in attracting and keeping tenants. It's not just about having a nice place; it's about having a place that meets the expectations of today's renters. As a result, rental yields in older, less renovated properties are likely to decline as tenants seek out these modern comforts.
For anyone considering buying property, it's crucial to understand these trends. Investing in properties with modern amenities could be the key to securing higher rental yields and attracting long-term tenants.
Sources: K9 Coliving, MDPI, Savills Sweden Office Report
10) Properties with home office spaces will become more popular as remote work remains a long-term trend
In recent years, we've seen a noticeable shift in the real estate market towards properties with dedicated office spaces. This trend has been particularly evident in Stockholm, where the demand for such properties has been on the rise. Real estate listings have shown that homes with extra rooms or office spaces are becoming increasingly sought after, reflecting a growing interest in flexible living arrangements that accommodate both personal and professional needs.
The home office furniture market in Sweden is also projected to grow significantly, with a 5.37% increase expected from 2025 to 2029. This growth is driven by a preference for functional and minimalist designs, as well as a focus on sustainability and eco-friendly materials. The rising sales of home office furniture indicate that more people are investing in creating comfortable and efficient workspaces at home.
Moreover, Sweden's high ranking in the Global Remote Work Index in 2023 highlights the country's strong preference for remote work. This preference is supported by Sweden's robust digital infrastructure and economic safety, which make remote work a viable long-term option for many employees. As companies continue to adopt long-term remote work policies, the demand for properties with home office spaces is likely to increase.
Sources: Statista, NordLayer, Statista Market Forecast
11) Vasastan’s property prices will rise moderately as it becomes a hub for tech startups and young professionals
Vasastan is becoming a hotspot for tech startups and young professionals, which is expected to lead to a moderate price increase in the area. This trend is supported by the increased number of tech startups establishing offices in Vasastan, as Stockholm's startup ecosystem continues to thrive with companies like Skype, Klarna, and Spotify emerging from the city. As more tech companies set up shop in Vasastan, the demand for property is likely to rise, pushing prices up.
The rising demand for coworking spaces also plays a role in this trend. The coworking space market in Stockholm expanded by 400% between 2017 and 2024, and although the growth rate has slowed, there are still plans for new coworking spaces. This ongoing demand indicates that areas like Vasastan, which cater to tech professionals, may experience price increases.
Demographic data shows an influx of young professionals, particularly tech workers, who prefer urban living. A survey by Indeed found that 52% of tech workers plan to move in the next 12 months, with many choosing to stay close to tech hubs for professional networks and job opportunities. This preference for urban living can drive up property prices in areas like Vasastan.
Sources: Startup Genome, Savills Sweden Office Report, Indeed Tech Workers Survey
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12) Gamla Stan will see stable prices due to its historical importance and limited property availability
Gamla Stan, the historical heart of Stockholm, is known for its unique charm and cultural significance. This area is a major tourist attraction, drawing both locals and visitors with its medieval architecture and vibrant facades. The high demand for properties in such a culturally rich area supports stable property prices.
In 2023 and 2024, property prices in Greater Stockholm, including Gamla Stan, showed stability and some growth. This trend is likely to continue in Gamla Stan due to its historical significance. The preservation laws in place limit new property developments, ensuring that the area's unique architecture remains intact. This scarcity of new properties contributes to the stability of prices.
Moreover, Sweden's strict laws on altering historical buildings prevent over-development, maintaining the area's cultural and historical integrity. This, combined with consistent rental yields and low vacancy rates, indicates a strong and stable market for properties in Gamla Stan.
Sources: Global Property Guide, Stockholm Museum
13) Rents in the outskirts will stay stable, catering to long-term residents and families
Rents in the outskirts of Stockholm, like Uppsala, have shown a pattern of stability over the years. In 2023, rental yields in these areas ranged from 5.47% to 7.72%, indicating a stable rental market. This stability is further highlighted by the comparison with central Stockholm, where rental prices were more volatile, increasing by 4.5% in the same year.
One of the key reasons for this stability is the demographic makeup of these areas. Uppsala, for instance, has seen an influx of working-age families, which has increased the demand for rental properties. These families often seek long-term housing solutions, contributing to a stable rental market. Additionally, the presence of a university in Uppsala attracts long-term residents who value stability over frequent housing changes.
Moreover, the limited number of new housing developments in the outskirts compared to central areas also plays a role in maintaining stable rental prices. This scarcity of new properties means that existing rentals are in high demand, further supporting price stability. The Swedish government's efforts to maintain affordable housing in these areas, although not detailed here, may also contribute to this stability.
Another factor is the appeal of suburban living, particularly for families who prefer larger living spaces and proximity to schools. This preference for suburban areas supports the stability of rental markets, as these areas experience lower turnover rates, indicating a stable tenant base. This stability is crucial for maintaining consistent rental income and reducing market volatility.
Sources: Global Property Guide
14) Rents in new eco-friendly buildings will rise as demand for sustainable living grows
In recent years, the demand for eco-friendly housing options has been on the rise, especially in urban areas like Stockholm. Young professionals are increasingly moving to city centers, driven by job opportunities in sectors such as IT, healthcare, and engineering. This influx has led to a heightened demand for rental properties that offer modern amenities and sustainable features.
Stockholm residents have become more aware and concerned about climate change, which has influenced the city's ambitious goals to reduce emissions and become fossil-free by 2040. This growing environmental consciousness is reflected in the city's commitment to green urban development, making sustainable living a priority for many.
Government incentives in Stockholm further support sustainable building practices. Initiatives like testbeds for climate-smart ideas and the expansion of charging infrastructure for electric vehicles create a favorable environment for eco-friendly developments. These efforts encourage the construction of buildings with higher energy efficiency ratings, which lead to lower utility costs for tenants.
Consumer surveys and urban planning trends indicate a strong preference for sustainable living environments. Real estate reports highlight the popularity of city center apartments among young professionals, who are drawn to the benefits of living in eco-friendly buildings, such as reduced carbon footprints and healthier indoor environments.
Sources: World Economic Forum, Cision
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Sweden. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Rents in central Stockholm will increase as the city attracts more international workers
Stockholm is becoming a magnet for multinational companies, sparking a surge in housing demand.
As the city transforms into a high-tech and high-skill economic hub, it's drawing in top global talent. This shift is particularly evident in sectors like tech, healthcare, and engineering, which are actively recruiting foreign workers to fill labor gaps. These professionals are flocking to central Stockholm, where the demand for rental properties is rising.
Stockholm's appeal isn't just about jobs; it's also about lifestyle. The city is gaining a reputation as a top destination for expatriates, thanks to its quality of life and work opportunities. This makes it a prime spot for international professionals and their families, further boosting the housing market.
Surveys and media coverage often highlight Stockholm's growing allure, painting it as a city where people want to live and work. This perception is driving more international workers to choose Stockholm, increasing the pressure on the rental market.
Central Stockholm is particularly attractive to these newcomers, who prefer to live close to work and enjoy the vibrant city life. As a result, rents in these areas are expected to rise as the city continues to draw in international talent.
With its focus on becoming a net-zero city by 2030, Stockholm is also investing in sustainable mobility measures, making it even more appealing to environmentally conscious professionals. This commitment to sustainability is another factor that enhances the city's attractiveness to international workers.
Sources: Statista, UITP, Stockholm International School
16) Stockholm’s metro expansion will boost property values in newly connected areas
The expansion of Stockholm's metro system is a game-changer for the city.
With 20 km of new track and 11 new stations, this is the biggest public transport investment since the 1970s. By 2030, these new connections will likely boost property values in the areas they reach. Historically, when metro lines extend, property prices tend to rise. Just look at Södermalm and Östermalm, where high demand and limited housing stock have already pushed prices up.
People love living near metro stations for the convenience. This preference is expected to increase demand and property values in the newly connected areas. The Stockholm City Plan supports this by focusing on high accessibility and good living environments, which are key factors in property value growth.
As the metro expands, neighborhoods will become more accessible, making them more desirable. This is not just about getting from point A to B; it's about enhancing the quality of life. The new lines will make it easier for residents to access work, schools, and leisure activities, which is a big draw for potential homebuyers.
Investing in property near these new metro stations could be a smart move. As the city grows, these areas are likely to become hotspots for both living and investment. The convenience of metro access is a major selling point, and as more people flock to these areas, property values are expected to climb.
So, if you're considering buying property in Stockholm, keep an eye on the areas connected by the new metro lines. They might just be the next big thing in the city's real estate market.
Sources: Railway Technology, Stockholm City Plan
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.