Buying real estate in Sweden?

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Best areas to buy and invest in property in Stockholm

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property investment Stockholm

Yes, the analysis of Stockholm's property market is included in our pack

The question of 'the best neighborhood to buy a property in Stockholm' does not have a one-size-fits-all answer.

Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.

That’s why the article below is covering every intent.

At Investropa, when we write a blog post or when we update our our property pack for Sweden, we want to bring solutions and cover different aims in a clear and organized way.

Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.

To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Stockholm into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.

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buying property in Stockholm

How is the real estate market in Stockholm?

The real estate market in Stockholm is quite intriguing, marked by its dynamic nature and appeal to a diverse range of buyers, including many foreigners.

The city's strengths are unique and contribute significantly to the demand for property here.

Stockholm, known for its blend of historic charm and modern innovation, offers a living experience you won't find elsewhere. Its archipelago, with over 30,000 islands, is a rare gem, providing breathtaking views and a sense of tranquility amidst city life.

This connection to nature, combined with a robust public transportation system, makes Stockholm a highly desirable place to live.

Moreover, the city's commitment to sustainability and green living is evident in its architecture and city planning, which is a significant draw for environmentally conscious individuals.

People looking to buy in Stockholm are diverse, but there's a notable interest from foreign investors and expatriates.

The city's strong economy, stable political environment, and high standard of living make it an attractive option for those seeking a safe investment or a high-quality life.

Its vibrant cultural scene, including world-class museums, theaters, and restaurants, adds to the allure.

The market's dynamism is evident in its resilience and growth. For instance, despite global economic fluctuations, Stockholm's real estate prices have shown a steady increase over the years, indicating strong demand and a healthy market.

One unique aspect of properties in Stockholm is the prevalence of 'bostadsrätt' (cooperative housing). This model, where you buy the right to live in an apartment rather than the apartment itself, is quite specific to Sweden and particularly popular in Stockholm.

It combines the benefits of ownership, like the ability to renovate and influence the housing association's decisions, with a communal approach to living.

Looking ahead, properties in Stockholm are likely to continue gaining value.

The city is consistently ranked as one of the world's most innovative and tech-friendly cities, attracting startups and established companies alike. This economic growth fuels job creation and attracts talent, increasing the demand for housing.

Additionally, Stockholm's commitment to sustainability and green initiatives is becoming increasingly valuable in a world focusing more on environmental concerns.

As such, the city's forward-thinking policies and initiatives are likely to make it an even more attractive place to live in the future.

Top neighborhoods in Stockholm to consider for living

Areas in Stockholm that are budget-friendly

If you're looking to buy property in Stockholm on a budget, there are a few neighborhoods you might want to consider.

Here is a summary table. Below, we will give more details.

Neighborhood Average Price per sqm Property Type Population Strengths Weaknesses
Rinkeby 30,000 SEK Apartments Diverse, Community-Oriented Cultural Diversity, Growth Potential Reputation, Distance from Center
Skärholmen 35,000 SEK Mixed Apartments and Houses Diverse Socio-economic Multicultural, Development Projects Underdevelopment, Lack of Prestige
Hagsätra 32,000 SEK Apartments Young Professionals, Families Calm Atmosphere, Green Spaces Limited Nightlife, Entertainment


Rinkeby is known for its affordability compared to other Stockholm areas.

It's cheaper because it's a bit further from the city center and has been stigmatized due to past social issues. However, property values in Rinkeby could rise as Stockholm expands and improves connectivity.

You'll mainly find apartment buildings in Rinkeby, often part of the Million Program era, with an average price around 30,000 SEK per sqm. The population is diverse, with a strong sense of community, but the area has faced challenges with integration and employment rates.

The strength of Rinkeby lies in its cultural diversity and potential for growth, while the main weakness is its current reputation and distance from central Stockholm.


Located in the southwest of Stockholm, Skärholmen offers affordable housing options, primarily because it's outside the main hustle of the city.

Prices in Skärholmen average around 35,000 SEK per sqm. The area is expected to gain value due to ongoing urban development projects and better transport links.

You'll find a mix of apartments and a few houses, catering to a diverse socio-economic demographic. It's a great spot for those seeking a multicultural environment with various local amenities.

However, Skärholmen's weaknesses include some areas of underdevelopment and a perceived lack of prestige.


Hagsätra, situated in the southern part of Stockholm, is another affordable option.

Its lower price point, around 32,000 SEK per sqm, is due to its distance from central Stockholm and past neglect in urban planning. However, its value is anticipated to increase due to new investments in infrastructure and housing.

The area mainly offers apartments, attracting a mix of young professionals and families.

Hagsätra's strengths lie in its calm atmosphere and green spaces, while its weaknesses include limited nightlife and entertainment options.

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Areas in Stockholm that are popular and upscale

When looking to buy property in Stockholm, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.

Neighborhood Average Price/sqm Property Types Resident Demographics Strengths Weaknesses Future Popularity
Östermalm High Spacious, historic apartments Affluent professionals, families Central location, culture High cost of living Stable
Södermalm Variable Mix of modern and traditional Diverse: professionals, artists Cultural richness, community feel Crowded, some areas lack greenery Stable
Djurgården Very High Luxury villas, upscale apartments Affluent, peace-seeking residents Natural beauty, tranquility Limited availability, high prices Stable


Östermalm is one of Stockholm's most upscale neighborhoods.

Known for its exclusive residential areas and high real estate prices, it is a hub for the affluent. Properties in Östermalm are often spacious, historic apartments with high ceilings and elegant features. The average price per square meter in Östermalm can be steep, reflecting the area's desirability.

Residents are typically well-to-do professionals and families. Strengths include its central location, vibrant cultural scene, and beautiful architecture.

However, the high cost of living and lack of housing diversity can be downsides. Östermalm is expected to remain popular due to its status and amenities.


Södermalm, while historically more bohemian, has become increasingly upscale.

It offers a mix of modern and traditional housing in Södermalm, attracting a diverse group of residents, including young professionals, artists, and families.

The area's creative vibe, with numerous galleries, boutiques, and eateries, adds to its appeal. Property prices in Södermalm are high but vary depending on the exact location within Södermalm.

Its strengths lie in its cultural richness and community feel, but it can be crowded, and some areas lack green spaces. Its popularity is likely to endure, given its unique character and central location.


Djurgården is a green oasis within Stockholm, known for its beautiful parks and museums.

It's a more exclusive area, with luxury properties including large villas and upscale apartments. The average price per square meter in Djurgården is among the highest in the city.

Its residents are usually affluent, seeking a serene environment close to the city center. Strengths include its natural beauty and tranquility, making it a unique urban retreat.

However, limited housing availability and high prices are significant drawbacks. Djurgården's appeal is expected to remain stable, appealing to those who value peace and greenery.

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real estate market Stockholm

Areas in Stockholm that emerge as new hotspots

Let's explore these emerging neighborhoods in Stockholm that, according to our local partners and our customers, are getting quite a bit of buzz lately.

Neighborhood Initial Character Recent Evolution Property Prices Resident Demographics Strengths Weaknesses Future Popularity
Hornstull Industrial, less developed Now trendy with cafes, shops More affordable Young professionals, creatives Lively atmosphere, development May lack traditional charm Increasing
Hammarby Sjöstad Urban renewal project Eco-friendly, modern Rising Eco-conscious individuals Sustainability, community feel Lacks historic charm Increasing
Liljeholmen Primarily residential Becoming more dynamic Moderate First-time buyers, young professionals Urban amenities, residential comfort May lack distinct character Increasing


Hornstull, once a lesser-known area, has recently emerged as a trendy hotspot.

Initially, it was more industrial and less developed, but it has undergone significant transformation. Now, it's known for its hip cafes, vintage shops, and vibrant nightlife.

This shift has made it popular among young professionals and creatives. Property prices in Hornstull are relatively more affordable compared to traditional upscale areas.

Hornstull's popularity is expected to grow, driven by its lively atmosphere and ongoing development.

Hammarby Sjöstad

Hammarby Sjöstad is a modern, eco-friendly neighborhood, initially developed as an urban renewal project.

It has evolved into a desirable residential area, particularly for environmentally conscious individuals and families. The area boasts modern apartments and excellent public transport links.

Prices in Hammarby Sjöstad are somewhat lower than in the city's more established areas but are rising due to its growing popularity.

Its strengths include its sustainability focus and community feel, but it may lack the historic charm of older districts. Its appeal is likely to continue growing as more people prioritize green living.


Liljeholmen is transitioning from a primarily residential area to a more dynamic urban space.

It used to be quieter, with a focus on family living, but recent developments have brought in more shopping, dining, and entertainment options, attracting a younger crowd. Property prices in Liljeholmen are more moderate, making it an attractive option for first-time buyers and young professionals.

The area's strengths include its balance of urban amenities and residential comfort, but some might find it lacks the distinct character of older neighborhoods.

Liljeholmen is expected to gain popularity as it continues to develop and diversify.

Make a profitable investment in Stockholm

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buying property in Stockholm