Buying real estate in Stockholm?

We've created a guide to help you avoid pitfalls, save time, and make the best long-term investment possible.

9 hottest real estate areas in Stockholm in 2025

Last updated on 

Authored by the expert who managed and guided the team behind the Sweden Property Pack

property investment Stockholm

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

Where are the best places to invest in Stockholm right now? Is Södermalm still the top pick, or are areas like Östermalm, Vasastan, and Kungsholmen gaining ground? What makes these locations attractive to both local and foreign investors?

We’re often asked these questions because we work directly with real estate agents, property developers, and clients who invest across the city. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.

Our goal is to highlight the hottest markets in Stockholm and explain why they’re worth your attention in 2025.

If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.

How this content was created 🔎📝

At Investropa, we study the Swedish real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Stockholm. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

We built our first area analyses on the insights from these conversations and our observations. But it was not enough. To strengthen our findings, we also consulted well-established sources like Global Property Guide, Skanska, and the Citycon Newsroom (just to name a few).

We only include the best areas to buy or the hottest real estate markets backed by credible sources, solid context, and clear data.

If we can’t find enough supporting information or context, we leave it out. There’s no point in recommending areas based on vague opinions or unverified trends. Our goal is to provide you with a reliable and well-researched guide to the most promising real estate markets—not just a random list of places.

Every source and citation is clearly listed because we believe in transparency and want to give you the tools to explore further if needed (and you should!).

We also use a bit of AI during the writing process to ensure our explanations are clear, accurate, and free of grammar or syntax mistakes. This way, you get content that’s both professional and easy to read.

When reading this content, you'll see that our team designed custom infographics to summarize and visualize key trends, making it clear why these markets stand out. We hope you’ll find them helpful! All other visuals were crafted in-house to ensure quality and clarity.

If you think we could have done anything better, please let us know. You can always send a message. We answer in less than 24 hours.

1) Täby is gaining attention for its suburban charm and new residential projects, attracting families and investors

Täby is quickly becoming a hot spot for property buyers thanks to its suburban charm and fresh residential projects.

In recent years, Täby has experienced a notable rise in property prices, with the average price per square meter now at 8,641,000 SEK. This is much higher than the national average, highlighting a strong demand for housing. It's a prime opportunity for investors eyeing long-term real estate gains.

The local government's focus on infrastructure, like the Täby Park project, is boosting the area's allure. This development promises new homes, commercial spaces, and community facilities, all set to be ready by 2025. Such projects are key to the area's growth, making it a top pick for families.

Täby also boasts excellent transport links, with the Roslagsbanan commuter train whisking you to Stockholm city center in just 12 minutes. This convenience is perfect for city workers who crave suburban life. Plus, the well-planned neighborhoods near schools make it even more appealing for families.

With its blend of modern amenities and suburban tranquility, Täby is drawing in both families and investors. The ongoing developments and strategic location are turning it into a sought-after destination.

As Täby continues to evolve, its mix of new residential options and easy city access is hard to resist. The area's transformation is a testament to its growing popularity and potential.

Sources: Rentberry, NCC, City Guide Stockholm, Annual Reports, Aparthotel

2) Hägersten-Liljeholmen is attracting investors with high rental yields and its proximity to the city center

Hägersten-Liljeholmen is becoming a hot spot for investors thanks to its strong rental yields and close proximity to Stockholm's city center.

When it comes to rental returns, this area is quite competitive. For instance, studios here boast a gross rental yield of 4.46%, which stacks up well against other Stockholm neighborhoods where yields for 2-bedroom apartments range from 4.28% to 5.90%. This makes Hägersten-Liljeholmen a smart choice for those eyeing rental properties.

Its location is another big draw. While exact travel times aren't listed, its short distance to the city center makes it perfect for those who want city perks without the chaos. This mix of easy access and suburban feel is a major attraction.

Adding to its charm are the ongoing development projects like RE: Liljeholmen. This initiative is set to bring in new apartments, workplaces, and amenities, boosting the area's appeal to both renters and buyers.

Hägersten-Liljeholmen is not just about numbers; it's about lifestyle. The area offers a unique blend of urban convenience and suburban tranquility, making it a sought-after location for many.

With these factors in play, it's no wonder that investors are increasingly drawn to Hägersten-Liljeholmen. The combination of high rental yields and strategic location is hard to resist.

Sources: Global Property Guide, Citycon Newsroom

statistics infographics real estate market Stockholm

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) Hammarby Sjöstad is thriving with its modern eco-friendly developments and high demand from young professionals

Hammarby Sjöstad is a hot market because of its modern eco-friendly developments.

In recent years, property prices have climbed, reflecting the high demand for sustainable living spaces. This area is a magnet for young professionals who want to live in neighborhoods that care about the environment. The district's commitment to green living is evident in its many eco-friendly residential projects.

Developers here are all about sustainable building practices, and it shows. New developments boast high occupancy rates, attracting residents who love modern amenities and green living. Young professionals are especially keen on these features, often choosing homes based on environmental standards.

Demographic data highlights a high percentage of young professionals living in Hammarby Sjöstad. Surveys reveal that this group has a strong preference for sustainable living, which aligns perfectly with the district's eco-friendly reputation. This alignment has driven up property demand, making the area even more desirable.

Hammarby Sjöstad is not just about green buildings; it's a model for sustainable urban living. The district's design and infrastructure cater to those who prioritize environmental sustainability, further boosting its appeal among young professionals.

With its focus on sustainability and modern living, Hammarby Sjöstad continues to attract a steady influx of young professionals. This trend solidifies its status as a sought-after market, where eco-friendly living is not just a trend but a lifestyle choice.

Sources: Nordregio, Urban Design Lab, C40

4) Solna is gaining interest for its blend of commercial and residential spaces, boosting property values and rental demand

Solna is quickly becoming a favorite spot for property buyers, thanks to its unique blend of commercial and residential spaces.

In recent years, this mix has led to a noticeable increase in property values and rental demand. A prime example is Skanska's hefty SEK 300 million investment in the Tygeln 1 property, which underscores the area's strong real estate market. This kind of investment is a clear sign that Solna is on the radar for big players in the property game.

Local real estate agencies are buzzing about the increased rental yields in Solna. The high demand for residential properties, especially in areas with commercial spaces and amenities, is a big driver. Solna Business Park stands out as a top choice for companies, thanks to its excellent transport links and services, making it a magnet for business relocations and expansions.

Solna's population is growing, fueled by its desirable location and amenities. A significant chunk of Stockholm's workforce calls Solna home, which has pushed up the demand for housing in these mixed-use areas. The ongoing infrastructure improvements, like new public transport links, only add to Solna's charm, making it a convenient place to live and work.

With its strategic location and a mix of living and working spaces, Solna is attracting a diverse crowd. The area's appeal is further boosted by its vibrant community and the ease of access to both local and international businesses. This dynamic environment is a big draw for those looking to invest in property.

Sources: Skanska, Stockholm Urban Mobility Strategy, Savills Sweden Office Report, Fabege

5) Årsta is gaining attention for its affordable homes and future value growth potential amid revitalization efforts

Årsta is quickly becoming a hotspot for affordable housing in Stockholm.

With house prices in Greater Stockholm dropping by 6.3% in 2023, more people are eyeing areas like Årsta for better deals. This trend hints that Årsta might see a boost in property sales soon.

Stockholm is buzzing with new residential projects, and while specific numbers for Årsta aren't available, the city's push for more housing rentals suggests similar growth could be happening there. This makes Årsta a tempting choice for future residents.

Local government is pouring money into infrastructure, like upgrading the Roslagsbanan rail line, which is making commuting a breeze. These improvements are a big plus for anyone thinking about moving to Årsta.

Compared to places like Greater Stockholm, where the average house price hit SEK 6.69 million in 2023, Årsta's homes are likely more budget-friendly. This affordability is a major draw for those looking to save on housing costs.

Stockholm's revitalization efforts, including sustainable projects, are setting a trend that could benefit Årsta. As the area gets a facelift, it's likely to attract new businesses and residents, boosting its potential for future value growth.

Sources: Housing Target, Transdev, Global Property Guide

Get to know the market before you buy a property in Stockholm

Better information leads to better decisions. Get all the data you need before investing a large amount of money. Download our guide.

real estate market Stockholm

6) Kungsholmen is gaining interest for its central location and rising property prices, making it a solid investment choice

Kungsholmen is a hot spot for property investment thanks to its prime location in Stockholm.

Known for its luxury apartments, Kungsholmen attracts both locals and international buyers who love its central vibe. Over the past decade, property prices here have steadily climbed, making it a solid choice for investors.

In 2023, the average house price in Stockholm hit SEK 6.69 million, with Kungsholmen standing out as a prime area. Although there was a dip in 2023, prices began to stabilize in 2024 with a modest 2% increase, offering a more comfortable entry point for buyers.

Stockholm's population has surged by 20% over the past decade, fueling demand for properties in central areas like Kungsholmen. Rental yields here are competitive, offering around 5.48% annually for a studio apartment, which is a big draw for investors.

Media articles often highlight Kungsholmen's investment potential, noting the limited land for new developments. This scarcity makes existing properties even more valuable, ensuring long-term growth in property values.

Real estate agencies frequently compare Kungsholmen favorably with other central districts, emphasizing its desirability. Its central location and steady price increase make it a solid investment choice.

Sources: Global Property Guide, Global Property Guide, Residensportalen

7) Lidingö is attracting attention for its luxury real estate and exclusive properties, driving high property values

Lidingö is catching the eye of luxury real estate buyers thanks to its soaring property prices.

In 2023, the island saw a remarkable rise in property values, with exclusive family villas listed for millions. This is quite a contrast to other parts of Sweden, where prices have dipped. The allure of Lidingö lies in its unique offerings, making it a hot spot for those seeking luxury.

The number of luxury real estate deals in Lidingö is on the rise. Looking ahead to 2024 and 2025, the market is expected to thrive, fueled by the exclusivity and top-notch amenities of its properties. Imagine villas with breathtaking views that are hard to find elsewhere.

Media coverage is also boosting Lidingö's reputation as a prime location. Websites like LuxuryEstate.com showcase a variety of luxury homes, drawing in high-net-worth individuals who are captivated by the island's charm. The promise of a serene archipelago lifestyle with stunning sea views is a major draw.

For those considering a move, Lidingö offers a unique blend of tranquility and luxury. The island's properties are not just homes; they are gateways to a peaceful yet opulent way of life. It's this combination that sets Lidingö apart in the luxury real estate market.

As more people discover what Lidingö has to offer, the demand for its exclusive properties continues to grow. This trend is a testament to the island's appeal and the high value placed on its real estate. Investing in Lidingö means investing in a lifestyle that few other places can match.

Sources: Global Property Guide, LuxuryEstate.com, Properties Le Figaro

8) Sundbyberg is booming with rapid property appreciation from excellent transport links and urban development projects

Sundbyberg is seeing a boom in property values, largely due to its top-notch public transport and urban development.

In 2023, while house prices in Sundbyberg dipped by 6.3% year-over-year, the market stayed more stable than other Swedish areas. This stability, along with its prime location, sets the stage for future growth. By 2024, Sundbyberg is expected to experience sharper price increases than other regions, thanks to its closeness to commercial hubs and ongoing development projects.

The demand for housing in Sundbyberg remains strong, partly because of its well-developed public transport system. In 2023, the area was already well-served by several metro stations, a train station, and numerous bus routes. The expansion of public transport infrastructure, like the construction of a northern light railway branch, further boosts Sundbyberg's connectivity and appeal.

Urban development projects are also key. For example, the construction of 227 rental apartments in the Ursvik district highlights the area's desirability and aligns with strategies to grow in attractive areas. This development, along with the planned light rail station expected to open in 2025, makes Sundbyberg even more appealing to residents and investors.

Locals and newcomers alike are drawn to Sundbyberg for its blend of urban convenience and suburban charm. The ongoing projects and improvements in public transport are not just about convenience; they are about creating a vibrant community. The planned light rail station is a game-changer, expected to enhance the area's accessibility and attractiveness.

Investors are taking note of Sundbyberg's potential. The combination of strategic location, robust transport links, and ambitious urban projects makes it a hotspot for property investment. With ongoing urban development and a strong housing demand, Sundbyberg is poised for significant growth in the coming years.

Sources: Global Property Guide, Wikipedia, Niam News, Hindustan Times, NAR Realtor

infographics comparison property prices Stockholm

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) Vasastan is popular for its historic charm and high rental prices, attracting both investors and renters

Vasastan is a hotspot for both investors and renters, thanks to its historic charm and consistently high rental prices.

Over the past few years, property prices in Vasastan have seen significant growth, especially between 2022 and 2023. This trend highlights the area's increasing demand and appeal. The rental market here is thriving, with high occupancy rates showing strong demand for housing. Rental prices have either stabilized or slightly increased, indicating that people are eager to live in this area.

In 2024, the average gross rental yield in Stockholm was around 4.53%, and Vasastan likely performed similarly or even better due to its unique appeal. The charm of Vasastan is further enhanced by historic preservation efforts, which have maintained its well-preserved architecture and cultural heritage. This makes it a desirable place to live and invest in.

Additionally, the area is attracting a growing population of young professionals and families, drawn by its historic charm and proximity to amenities. The neighborhood's appeal is not just about its looks; it's about the lifestyle it offers. With a mix of trendy cafes, parks, and cultural spots, Vasastan provides a vibrant urban experience.

Investors are particularly interested in Vasastan because of its consistently high rental prices, which promise good returns. Renters, on the other hand, are drawn to the area's unique blend of history and modernity. The combination of these factors makes Vasastan a prime location for both living and investing.

Sources: Residensportalen, Global Property Guide, Global Property Guide, WhereSleep

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.