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Uppsala and Malmö currently deliver the highest rental yields in Sweden, with Uppsala averaging 7.04% and Malmö at 6.02%.
Stockholm shows the strongest rental demand but lower yields at 4.23%, while university towns consistently outperform major cities for rental returns due to permanent student housing demand and high occupancy rates.
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Uppsala delivers the highest rental yields in Sweden at 7.04%, followed by Malmö at 6.02%, while Stockholm shows strong demand but lower yields at 4.23%.
Student housing and small apartments generate the highest returns, particularly in university towns, with central Stockholm rents ranging from SEK 320-400 per sqm monthly.
| City | Average Rental Yield | Average Price (€/m²) | Rent (SEK/m²/month) | 1BR Average Rent (SEK/month) | Vacancy Rate | Market Strength |
|---|---|---|---|---|---|---|
| Uppsala | 7.04% | €4,446 | 160-200 | 8,500 | Very Low | University Town |
| Malmö | 6.02% | €2,500 | 160-210 | 9,000 | 8% (CBD) | Strong Growth |
| Gothenburg | 4.96% | €5,446 | 180-260 | 10,000 | 14% | Stable |
| Stockholm | 4.23% | €9,744 | 320-400 | 12,000 | 8-16.5% | Highest Demand |
| Lund | 6.5%+ | €4,446 | 150-190 | 7,500 | Very Low | University Town |
What is the average rental yield right now in Stockholm compared to Gothenburg, Malmö, and Uppsala?
As of September 2025, rental yields across Sweden's major cities show significant variation, with Stockholm delivering the lowest returns despite highest demand.
Stockholm apartments currently yield 4.23% on average, with studios in the city center reaching up to 5.73%. Gothenburg performs better at 4.96% average yields, with city-center studios achieving up to 6.34% and 1-bedroom apartments reaching 7.11%.
Malmö shows stronger performance with a city-wide average rental yield of 6.02%, where studios and 1-bedroom apartments yield 6.5% and 6.32% respectively. Uppsala delivers the highest yields nationally at 7.04%, especially for student-oriented apartments with consistent demand throughout the academic year.
The yield differences reflect Stockholm's premium property prices versus rental income potential, while smaller cities offer better returns due to lower purchase costs and strong rental demand from students and young professionals.
It's something we develop in our Sweden property pack.
Which Swedish cities or regions currently show the strongest rental demand relative to housing supply?
Stockholm leads with extremely tight rental demand, featuring a 9+ year rental queue system that demonstrates severe supply shortage.
The capital city experiences the most imbalanced supply-demand ratio in Sweden, with vacancy rates of 8% in the CBD and up to 16.5% in outer districts. Gothenburg, Malmö, and Uppsala also report tight supply conditions with consistently low vacancy rates, particularly in city centers.
Emerging strong demand regions include university towns like Luleå, Nyköping, and Lund, driven by population growth and job creation. These cities benefit from permanent student populations and growing professional sectors that sustain rental demand year-round.
Stockholm's rental market remains the tightest nationally, with regulated rental waiting times exceeding 9 years due to extreme demand from both domestic and international residents. The city's population grew by over 19,500 new residents last year, adding pressure to an already constrained housing supply.
What is the average purchase price per square meter in the top five rental markets in Sweden?
The top five Swedish rental markets by purchase price per square meter reflect both investment potential and market maturity levels.
| City | Average Price (€/m²) | Market Position | Investment Appeal |
|---|---|---|---|
| Stockholm | €9,744 | Premium Market | High Demand, Lower Yields |
| Gothenburg | €5,446 | Secondary Market | Balanced Risk-Return |
| Uppsala | €4,446 | University Town | High Yields, Student Demand |
| Lund | €4,446 | University Town | Strong Student Market |
| Malmö | €2,500 | Value Market | Best Yield Potential |
How much rent per square meter can I realistically expect in central Stockholm versus suburban areas?
Central Stockholm commands premium rental rates significantly higher than suburban areas, reflecting location desirability and transport accessibility.
Central Stockholm rents range from SEK 320-400 per square meter monthly, with variations based on specific district and property type. Areas like Östermalm, Södermalm, and Norrmalm command the highest rates due to proximity to business districts and cultural amenities.
Suburban Stockholm areas average SEK 180-280 per square meter monthly, offering more affordable options while maintaining reasonable access to the city center. Districts like Rinkeby, Tensta, and outer areas of Söderort typically fall within this range.
The rental premium for central locations averages 40-80% above suburban rates, justified by proximity to employment centers, restaurants, and public transportation networks. Property investors should factor these location premiums when calculating potential returns and target tenant demographics.
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What are the most profitable property types for rental returns in Sweden—apartments, single-family homes, or student housing?
Student housing and small apartments consistently generate the highest rental yields across Sweden, particularly in university towns like Uppsala and Lund.
City center studios and 1-bedroom apartments deliver top rental yields in Stockholm, Malmö, and Gothenburg, with studios achieving yields between 5.73-6.34% depending on location. These property types benefit from high turnover rates and consistent demand from young professionals and students.
Single-family homes typically show lower yields, especially in expensive city districts, but offer better potential for long-term capital appreciation. Co-living properties represent an emerging profitable segment, with rising demand especially in Stockholm and larger cities.
Student housing in university towns provides the most reliable returns, with Uppsala and Lund showing yields 2-3% higher than major cities due to permanent student demand and high occupancy rates throughout academic years.
It's something we develop in our Sweden property pack.
How do rental yields differ between major cities and smaller university towns?
University towns consistently outperform major cities for rental yields, often delivering 2-3% higher returns due to specialized housing demand and lower property acquisition costs.
Uppsala leads nationally with 7.04% average yields, while Lund achieves similar performance above 6.5%, both significantly higher than Stockholm's 4.23% or Gothenburg's 4.96%. This performance gap reflects permanent student populations requiring housing regardless of economic cycles.
Major cities command higher property prices but generate proportionally lower rental income, resulting in compressed yields despite stronger overall rental demand. University towns benefit from efficient rental turnover, especially at semester starts, and consistent occupancy throughout academic years.
The yield advantage in university towns stems from lower purchase prices combined with strong rental demand from domestic and international students. These markets also show less volatility during economic downturns due to education sector stability.
What are the current vacancy rates in the main rental markets across Sweden?
Vacancy rates across Sweden's main rental markets vary significantly, with Stockholm showing the tightest residential conditions despite higher office vacancy.
Stockholm reports 8% vacancy in the CBD and up to 16.5% in outer districts, though residential properties typically experience much lower vacancy than commercial spaces. Gothenburg's central office vacancy reached nearly 12%, while residential markets remain considerably tighter.
Malmö maintains similar CBD vacancy rates around 8%, with residential properties showing stronger occupancy. University towns like Uppsala and Lund typically maintain very low vacancy rates due to consistent student housing demand throughout academic periods.
The disparity between office and residential vacancy reflects changing work patterns and strong housing demand across Swedish cities. Residential properties in central locations consistently outperform suburban areas for occupancy rates.
How do local property taxes, maintenance fees, and other costs affect net rental returns in different cities?
Swedish property taxation and fees significantly impact net rental returns, typically reducing gross yields by 1.5-2% across all cities.
| Cost Category | Rate/Amount | Impact on Returns | Variation by City |
|---|---|---|---|
| Rental Income Tax | 30% (SEK 40,000 annual deduction) | Major reduction | Uniform nationwide |
| Property Tax | 0.75% or SEK 7,262 minimum | Moderate impact | Municipal variations |
| Maintenance Costs | Variable by property type | Moderate impact | Higher in older cities |
| Management Fees | 5-10% of rental income | Moderate impact | Higher in Stockholm |
| Insurance | SEK 2,000-5,000 annually | Minor impact | Uniform nationwide |
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Sweden versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How quickly do properties rent out in Stockholm compared to secondary cities like Lund or Umeå?
Property rental speed varies dramatically between Stockholm's constrained market and more flexible secondary cities like Lund or Umeå.
Central Stockholm faces extreme rental delays, with regulated rental waiting times exceeding 9 years due to overwhelming demand versus limited supply. Private rental properties move faster but still experience significant competition from prospective tenants.
Secondary cities like Lund and Umeå show much faster rental take-up, particularly in university towns where efficient turnover occurs at semester starts. These markets benefit from predictable academic calendars and established student housing networks.
The speed difference reflects Stockholm's severe housing shortage versus more balanced supply-demand conditions in smaller cities. University towns maintain steady rental velocity throughout the year, while Stockholm properties often receive multiple applications within days of listing.
What are the main legal restrictions on rental prices and tenant contracts in Sweden that affect profitability?
Sweden maintains strong rental regulations that significantly impact property investment profitability through price controls and tenant protections.
Rent controls apply especially to first and second-hand rentals, with strict caps on pricing and limited annual increases, particularly enforced in Stockholm and major cities. These regulations prevent landlords from charging market rates in high-demand areas.
Swedish tenant rights strongly favor renters, making evictions difficult and lengthy processes while long-term contracts typically benefit tenants over landlords. Short-term rental rules vary by city but generally offer more flexibility for privately owned units compared to corporate rental stock.
The regulatory environment prioritizes tenant protection over landlord profitability, requiring investors to carefully consider legal constraints when calculating potential returns and property management strategies.
It's something we develop in our Sweden property pack.
What trends in population growth, job creation, or student enrollment are driving future rental demand in specific Swedish cities?
Population growth and economic expansion across Swedish cities create strong fundamentals for sustained rental demand through 2025 and beyond.
Stockholm's population grew 20% over the last decade, with over 19,500 new residents added last year alone, driving continued housing pressure. Malmö and Gothenburg attract international professionals and students, fueling consistent rental demand across property types.
Uppsala and Lund benefit from rising student enrollment trends, creating strong demand for small units and co-living arrangements. These university towns show particular strength in international student populations requiring housing throughout academic programs.
Job creation in technology, healthcare, and education sectors supports rental demand in major cities, while university expansions drive growth in smaller academic centers. The combination of domestic migration and international immigration sustains long-term rental market fundamentals.
Which areas in Sweden have shown the fastest rental price growth over the past three years, and is that trend continuing?
University towns lead Swedish rental price growth, with Uppsala and Lund showing 7-9% annual increases over the past three years.
Gothenburg demonstrates steady rental growth at 4-5% annually, with city center areas showing the strongest performance. Malmö and Helsingborg both experienced over 6% annual rental growth, with trends expected to continue into 2025.
The growth pattern reflects strong underlying demand from student populations, young professionals, and international residents across these markets. University towns maintain pricing power due to limited alternative housing options and consistent enrollment growth.
Stockholm shows more modest rental increases due to regulatory constraints, though underlying demand pressures suggest continued upward price momentum where regulations permit. The trend toward higher rental prices appears sustainable given population growth and constrained housing supply across Swedish markets.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Uppsala and university towns offer the highest rental yields in Sweden, consistently outperforming major cities by 2-3% due to permanent student housing demand and lower property acquisition costs.
While Stockholm shows the strongest rental demand nationally, regulatory constraints and high property prices compress yields, making secondary cities and university towns more attractive for rental return-focused investors.
Sources
- Global Property Guide - Sweden Rental Yields
- InvestRopa - Buying House Sweden
- Global Property Guide - Sweden Rent Yields
- Guestly Homes - Apartments in Sweden
- Residensportalen - Average Rents 2025
- Relocate.me - Stockholm Cost of Living
- InvestRopa - Sweden Which Area
- Global Property Guide - Sweden Taxes and Costs
- Cushman Wakefield - Sweden Market Beat
- InvestRopa - Sweden Real Estate Trends