Authored by the expert who managed and guided the team behind the Sweden Property Pack
Everything you need to know before buying real estate is included in our Sweden Property Pack
Sweden's residential property market is recovering in early 2026, with prices expected to rise between 5% and 6% this year thanks to falling interest rates and new mortgage rules taking effect in April 2026.
This blog post covers everything you need to know about current housing prices in Sweden, and we update it regularly to keep the information accurate and useful.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Sweden.
How's the real estate market going in Sweden in 2026?
What's the average days-on-market in Sweden in 2026?
As of early 2026, the average days-on-market for residential properties in Sweden is approximately 32 days, which is slightly faster than the 34-day average recorded throughout 2025.
The realistic range of days-on-market that covers most typical listings in Sweden spans from about 20 days for well-priced apartments in central Stockholm to 45 days or more for properties in smaller towns or rural areas.
Compared to one or two years ago, selling times in Sweden remain significantly longer than the 15-day average seen during the 2021 market peak, but they are gradually improving as buyer confidence returns and new mortgage rules are set to take effect in April 2026.
Are properties selling above or below asking in Sweden in 2026?
As of early 2026, the estimated sale-to-asking price ratio for residential properties in Sweden shows that apartments typically sell 5% to 10% above their listing price, while houses tend to close within 0% to 5% of the asking price.
Roughly 40% of properties in Sweden sell below asking, around 45% sell above asking, and the remaining 15% close at or near the listed price, though we are moderately confident in these numbers since bidding behavior varies significantly by region and property type.
The property types and neighborhoods most likely to see bidding wars and above-asking sales in Sweden are compact apartments in central Stockholm (especially Södermalm, Vasastan, and Östermalm), family apartments near good schools in Bromma or Solna, and well-located properties in Gothenburg's Majorna or Linnéstaden districts.
By the way, you will find much more detailed data in our property pack covering the real estate market in Sweden.
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.
What kinds of residential properties can I realistically buy in Sweden?
What property types dominate in Sweden right now?
The estimated breakdown of the most common residential property types available for sale in Sweden is approximately 52% apartments in multi-family buildings, 41% homes in small houses (detached houses, duplexes, and rowhouses), and the remainder in special or other housing categories.
The single property type that represents the largest share of the Sweden market is the bostadsrätt, which is a tenant-owner apartment where you buy a share in a housing association rather than owning the unit outright like in many other countries.
The bostadsrätt became so prevalent in Sweden because of decades of housing policy favoring cooperative ownership, large-scale conversions of rental apartments to tenant-owner units (especially in Stockholm's inner city between 1990 and 2010), and the practical advantages it offers for urban living in a market with strict rent controls.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Sweden right now?
The estimated share of new-build properties among all residential listings currently available in Sweden is relatively modest, as construction starts dropped sharply between 2022 and 2024, though Boverket forecasts approximately 35,100 housing starts in 2026, up from around 28,300 in 2025.
As of early 2026, the neighborhoods and districts in Sweden with the highest concentration of new-build developments include Hagastaden and Slakthusområdet in Stockholm, Frihamnen and Lindholmen on Gothenburg's Hisingen waterfront, and Nyhamnen near Malmö Central station.
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Which neighborhoods are improving fastest in Sweden in 2026?
Which areas in Sweden are gentrifying in 2026?
As of early 2026, the top neighborhoods in Sweden currently showing the clearest signs of gentrification include Slakthusområdet and Hagastaden in Stockholm, Majorna and parts of Hisingen in Gothenburg, parts of Järva in Stockholm's suburbs, and Rosengård in Malmö.
Visible changes indicating gentrification is underway in these areas include the arrival of specialty coffee shops and coworking spaces in Slakthusområdet, new tramlines and biotech offices transforming Hagastaden, converted industrial buildings becoming creative studios in Majorna, and rising numbers of young professionals moving into previously working-class Södermalm side streets.
The estimated price appreciation in gentrifying neighborhoods in Sweden over the past two to three years has ranged from 6% to 12% in areas like Hagastaden and Sundbyberg, which outpaced the national average that remained essentially flat during the same period.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Sweden.
Where are infrastructure projects boosting demand in Sweden in 2026?
As of early 2026, the top areas in Sweden where major infrastructure projects are currently boosting housing demand include Nacka, Solna/Arenastaden, and Barkarby/Järfälla in Stockholm, central Gothenburg station areas along the Västlänken route, and Nyhamnen near Malmö Central.
The specific infrastructure projects driving that demand include Stockholm's Nya tunnelbanan metro expansion (adding 18 new stations), Gothenburg's Västlänken underground commuter rail link creating new city-center stations at Centralen, Haga, and Korsvägen, and Malmö's ongoing Nyhamnen district development anchored by improved rail connections.
The estimated timeline for completion of these major projects is around 2028 to 2030 for the first Nya tunnelbanan lines, 2026 to 2028 for Västlänken's initial operations, and ongoing phased delivery through 2035 for Nyhamnen's full buildout.
The typical price impact on nearby properties in Sweden once such infrastructure projects are announced versus completed ranges from 6% to 8% appreciation near gentrifying transit corridors according to Swedish housing research, with most of the gain occurring between announcement and opening rather than after completion.
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.
What do locals and insiders say the market feels like in Sweden?
Do people think homes are overpriced in Sweden in 2026?
As of early 2026, the estimated general sentiment among locals and market insiders in Sweden is that the market feels cautiously balanced, with many believing central Stockholm apartments are expensive but most other segments are fairly priced after the 2022-2023 correction.
The specific evidence or metrics locals typically cite when arguing homes are overpriced in Sweden include the fact that average selling times remain around 32 days (more than double the 2021 peak), nearly 40% of homes still sell below asking price, and household debt remains high at around 151% of gross income.
The counterarguments commonly given by those who believe prices are fair in Sweden include the ongoing housing shortage (especially in Stockholm where rental queues stretch over a decade), the structural undersupply with construction starts far below historical averages, and the April 2026 mortgage rule changes that will make buying more accessible.
The price-to-income ratio in Sweden is elevated compared to regional averages, with Stockholm requiring approximately 40,000 SEK monthly income before tax just to borrow 90% of an average small apartment's price, while cities like Gothenburg and Malmö offer somewhat better affordability ratios.
What are common buyer mistakes people regret in Sweden right now?
The most frequently cited buyer mistake that people regret making in Sweden is underestimating the true monthly costs of a bostadsrätt, because the association's monthly fee (avgift) and its underlying debt level can significantly impact your total housing expense far more than the purchase price alone suggests.
The second most common buyer mistake people mention regretting in Sweden is failing to budget for the ownership registration (lagfart) and mortgage deed (pantbrev) costs when buying a house (fastighet), which can add 1.5% to 3% of the property value in stamp duties and fees that many first-time buyers overlook.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Sweden.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Sweden.
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How easy is it for foreigners to buy in Sweden in 2026?
Do foreigners face extra challenges in Sweden right now?
The estimated overall difficulty level foreigners face when buying property in Sweden compared to local buyers is moderate, because while there are no legal restrictions on foreign ownership of urban residential property, the practical process involves several administrative hurdles that locals do not encounter.
The specific legal restrictions or additional requirements that apply to foreign buyers in Sweden are minimal for urban properties, though buyers from outside the EU/EEA may face restrictions when purchasing agricultural or forestry land, and all buyers need a Swedish coordination number (samordningsnummer) to complete property registration.
The practical challenges foreigners most commonly encounter in Sweden include the requirement to obtain a Swedish bank account and BankID for many transactions, the fact that most real estate contracts and housing association documents are in Swedish only, and the difficulty of participating in fast-moving bidding processes remotely when sales can close within days.
We will tell you more in our blog article about foreigner property ownership in Sweden.
Do banks lend to foreigners in Sweden in 2026?
As of early 2026, the estimated availability of mortgage financing for foreign buyers in Sweden is limited but possible, with most success going to foreigners who have Swedish income, a Swedish residence permit, or substantial assets to offer as additional security.
The typical loan-to-value ratios foreign buyers can expect in Sweden range from 50% to 75% (compared to 85% for Swedish residents, rising to 90% from April 2026), and interest rates are generally 0.25% to 0.75% higher than standard rates, putting them around 3.3% to 3.9% for variable-rate mortgages.
The documentation and income requirements banks typically demand from foreign applicants in Sweden include proof of stable income (preferably Swedish), employment contracts, tax returns from your home country, a Swedish coordination number, and often a larger cash deposit of 25% to 30% to offset the perceived risk of lending to non-residents.
You can also read our latest update about mortgage and interest rates in Sweden.
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 risky is buying in Sweden compared to other nearby markets?
Is Sweden more volatile than nearby places in 2026?
As of early 2026, Sweden's estimated price volatility is higher than neighboring Norway and Denmark, because Sweden's housing market is more sensitive to interest rate changes due to the prevalence of variable-rate mortgages and high household debt levels.
The historical price swings Sweden has experienced over the past decade include a roughly 16% decline from the 2022 peak to mid-2024, which was steeper than the corrections seen in Norway (around 8%) or Denmark (around 10%) during the same rate-hiking cycle.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Sweden.
Is Sweden resilient during downturns historically?
The estimated historical resilience of Sweden's property values during past economic downturns is moderate, with prices falling significantly during crises but recovering relatively quickly once economic conditions stabilize and rates normalize.
During the most recent major downturn (2022-2024), property prices in Sweden dropped approximately 16% from their peak, and the recovery began taking shape in late 2024, meaning the correction lasted roughly two years before stabilization occurred.
The property types and neighborhoods in Sweden that have historically held value best during downturns are centrally located apartments in Stockholm's Östermalm and Vasastan, family-friendly areas with strong schools like Bromma and Danderyd, and well-connected university cities like Uppsala and Lund where demand remains structurally supported.
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How strong is rental demand behind the scenes in Sweden in 2026?
Is long-term rental demand growing in Sweden in 2026?
As of early 2026, the estimated growth trend for long-term rental demand in Sweden is strong and rising, driven by persistent housing shortages in major cities, strict rent controls that make first-hand rental contracts extremely valuable, and continued urbanization.
The tenant demographics driving long-term rental demand in Sweden include young professionals relocating for tech and biotech jobs in Stockholm and Gothenburg, international students (who make up 25% of enrollment at universities like Lund), newly arrived immigrants establishing themselves before buying, and families waiting in municipal housing queues that can stretch over 15 years in Stockholm.
The neighborhoods in Sweden with the strongest long-term rental demand right now are areas near major universities (Johanneberg in Gothenburg, Lund center), transit-connected suburbs with good schools (Bromma in Stockholm, Örgryte in Gothenburg, Limhamn in Malmö), and central business district locations where young professionals want short commutes.
You might want to check our latest analysis about rental yields in Sweden.
Is short-term rental demand growing in Sweden in 2026?
Sweden currently has no nationwide ban on short-term rentals, but housing associations (bostadsrättsföreningar) commonly restrict subletting in their bylaws, and Stockholm has introduced stricter reporting requirements, making Airbnb-style rentals more administratively complex than in many other European cities.
As of early 2026, the estimated growth trend for short-term rental demand in Sweden is moderately positive, supported by recovering international tourism that saw commercial overnight stays increase through 2024 and 2025 according to official accommodation statistics.
The current estimated average occupancy rate for short-term rentals in Sweden varies significantly by location, ranging from around 55% to 65% in Stockholm and Gothenburg city centers to 35% to 45% in seasonal destinations outside peak periods.
The guest demographics driving short-term rental demand in Sweden include business travelers attending conferences and corporate events in Stockholm and Gothenburg, summer tourists visiting the archipelago and Gotland, winter sports visitors to ski resorts in Åre and other mountain areas, and growing numbers of digital nomads attracted to Sweden's quality of life.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Sweden.
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.
What are the realistic short-term and long-term projections for Sweden in 2026?
What's the 12-month outlook for demand in Sweden in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Sweden is positive, with buyer activity expected to strengthen gradually through the year as mortgage affordability improves and new credit rules take effect in April.
The key economic and political factors most likely to influence demand in Sweden over the next 12 months include the implementation of relaxed mortgage rules on April 1, 2026 (raising the loan-to-value cap from 85% to 90% and removing the stricter amortization requirement), the Riksbank's interest rate path, and the pace of economic recovery with GDP growth projected at 2% to 2.3%.
The forecasted price movement for Sweden over the next 12 months is an increase of approximately 5% to 6%, according to major Swedish banks including Handelsbanken and SBAB, with some forecasts suggesting the April rule changes alone could account for 2 percentage points of that growth.
By the way, we also have an update regarding price forecasts in Sweden.
What's the 3-5 year outlook for housing in Sweden in 2026?
As of early 2026, the estimated 3-5 year outlook for housing prices and demand in Sweden is moderately positive, with most analysts expecting price growth of 4% to 5% annually as the market normalizes and returns to growth roughly in line with household income increases.
The major development projects and urban plans expected to shape Sweden over the next 3-5 years include the completion of Stockholm's Nya tunnelbanan first lines (opening stations in Nacka and Arenastaden), Gothenburg's Västlänken rail tunnel reaching operational status, continued buildout of Hagastaden and Slakthusområdet in Stockholm, and Malmö's Nyhamnen district expansion.
The single biggest uncertainty that could alter the 3-5 year outlook for Sweden is a resurgence of inflation that forces the Riksbank to raise interest rates again, which would squeeze affordability and could trigger another price correction given Sweden's high household debt levels and reliance on variable-rate mortgages.
Are demographics or other trends pushing prices up in Sweden in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in Sweden is meaningfully positive, because continued population growth (around 0.3% to 0.6% annually), urbanization exceeding 87%, and immigration-driven household formation all concentrate demand in already supply-constrained major cities.
The specific demographic shifts most affecting prices in Sweden include the continued migration of young professionals to Stockholm, Gothenburg, and Malmö for employment, international students arriving at Swedish universities (with Lund seeing 25% international enrollment), and immigrants establishing long-term residence after initial rental periods.
The non-demographic trends also pushing prices in Sweden include the shift toward remote and hybrid work (which has increased demand for larger apartments and houses with home office space), growing interest from foreign Nordic investors attracted by Sweden's lower prices relative to Oslo or Copenhagen, and the sustainability trend driving premium pricing for energy-efficient new builds.
These demographic and trend-driven price pressures are expected to continue in Sweden for at least the next 5 to 10 years, because urban housing supply growth remains structurally limited by high construction costs, slow permitting processes, and the fact that new completions consistently lag population growth in attractive areas.
What scenario would cause a downturn in Sweden in 2026?
As of early 2026, the estimated most likely scenario that could trigger a housing downturn in Sweden is a re-acceleration of inflation forcing the Riksbank to halt rate cuts or raise rates again, which would squeeze affordability rapidly given that nearly 80% of Swedish mortgages are variable or have less than three months until rate renewal.
The early warning signs that would indicate such a downturn is beginning in Sweden include selling times lengthening back above 40 days nationally, the share of properties selling below asking rising above 55%, housing association bankruptcies increasing in over-leveraged new developments, and major banks tightening lending criteria beyond regulatory requirements.
A potential downturn in Sweden could realistically be as severe as a 10% to 15% price decline based on historical patterns, since the 2022-2024 correction saw prices drop approximately 16% from peak, though the current starting point is already post-correction and supportive policy changes may cushion any future decline.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Sweden, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Statistics Sweden (SCB) | SCB is Sweden's official statistics agency, so its housing stock counts and economic data are the baseline truth for market analysis. | We used it to size Sweden's housing composition by property type. We translated those official categories into the real property types you'll encounter as a buyer. |
| Hemnet Group | Hemnet runs Sweden's largest housing platform and publishes transparent, repeatable market metrics at national scale. | We used it for market tempo indicators like average selling time and supply conditions. We used those 2025 levels as the anchor to estimate early 2026 momentum. |
| Svensk Mäklarstatistik | It's the standard reference for Sweden's transaction-based price statistics, widely used by institutions and media. | We used it to anchor recent price direction by segment and region. We used those differences to explain why Sweden can feel like multiple markets at once. |
| Boverket | Boverket is Sweden's national housing and planning authority, and its build forecasts are a core reference for supply projections. | We used it to quantify how much new supply is realistically coming in 2026. We used the split by building type to explain where new builds will actually show up. |
| Swedish Government (Regeringen) | This is the government itself describing proposed mortgage rule changes and effective dates. | We used it to identify what could change on April 1, 2026. We used it to explain why affordability and bidding behavior could shift during 2026. |
| Finansinspektionen (FI) | FI is Sweden's financial supervisor, so it's the authoritative voice on mortgage-risk rules and household debt concerns. | We used it to frame credit conditions as a key driver of housing cycles in Sweden. We used it to keep the 2026 outlook grounded in credit-risk reality. |
| Sveriges Riksbank | The Riksbank sets monetary policy, and its published rate path guides funding costs and mortgage rates throughout Sweden. | We used it to explain why rates matter so much for Sweden's housing market. We used it as the macro driver behind our 2026 momentum scenarios. |
| SBAB | SBAB is a major Swedish mortgage lender that publishes structured housing-market forecasts with clear assumptions. | We used it for a credible, quantified house-price outlook into 2026-2027. We used it to triangulate our 12-month and 3-5 year scenarios. |
| Lantmäteriet | Lantmäteriet is the official land registration authority, so it's the source of truth for stamp duty and registration fees. | We used it to explain transaction costs that are uniquely important for houses in Sweden. We used it so you can budget correctly and avoid surprise fees at closing. |
| Region Stockholm | This is the regional authority responsible for Stockholm transit projects, so it's the official project record for the metro expansion. | We used it to identify where transit-led demand catalysts are most plausible in 2026. We used it to name specific Stockholm submarkets tied to the build-out. |