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What is happening in Sweden’s real estate market? Are prices on the rise or decline? Is Stockholm still a prime location for international investors? How are Sweden’s government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Sweden, from Malmö to Uppsala and beyond. Maybe you’re curious about these topics too.
We understand this because we stay closely connected with local experts and individuals like you, exploring the Swedish real estate market daily. That’s why we’ve crafted this article: to deliver clear answers, insightful 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’ve missed something or could improve, we’d love to hear your feedback. Feel free to reach out with your thoughts or comments, and we’ll strive to enhance this content for you.
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1) Sweden’s property prices will stabilize after rapid growth, creating more opportunities for buyers
Sweden's housing market has been on a rollercoaster ride recently.
In 2023, house prices took a dip, with the national index dropping by 6.31%. This was especially noticeable in Greater Stockholm and Greater Malmo, where prices fell by 6.3% and 8.7% respectively. It was a tough time for sellers, but buyers had a bit more room to negotiate.
Fast forward to 2024, and things started to look up. The market began to stabilize, with a modest 2% increase in house prices. This shift suggested that the rapid growth phase was cooling off, making it a more comfortable time for potential buyers. Real estate agencies observed that while more transactions were happening, they were still not at the levels seen in the past, hinting at a more balanced market.
The Swedish government has been busy behind the scenes, working to keep the housing market steady. They've been focusing on increasing access to buildable land and encouraging new construction methods. These efforts, along with the Riksbank's decision to ease interest rates in 2024, have helped create a more balanced environment for buyers and sellers alike.
For those considering buying property in Sweden, this stabilization means more opportunities and potentially better deals. The market isn't as frantic as it once was, giving buyers a chance to explore their options without feeling rushed.
Sources: Global Property Guide, ING Think, Stockholm University
From this video, we realize that property prices are indeed stabilizing across Sweden. The video details current market conditions and shows how prices have adjusted after previous growth periods.
2) A weaker Swedish krona will draw more foreign investors seeking affordable property options
The Swedish krona has hit a record low against the euro in 2023, making Swedish real estate more appealing to foreign buyers.
With the krona's depreciation, property in Sweden has become more affordable for international investors, especially those from nearby countries like Norway, Germany, and Denmark. This trend is evident as foreign ownership of holiday homes in Sweden has increased, showing a growing interest in the market.
Real estate agencies, such as Knight Frank, have noted that the weak krona and recent price drops are making Sweden an attractive option for overseas investors. The lower purchase costs for non-residents compared to other European cities add to the allure of Swedish properties.
Economic forecasts suggest that the krona's weakness will continue, which means the trend of foreign investment in Swedish real estate is likely to persist. This situation presents a unique opportunity for those looking to invest in a market that offers both affordability and potential growth.
For potential buyers, the combination of a weak currency and competitive pricing makes Sweden a compelling choice. The current economic climate is creating a favorable environment for foreign investors to enter the Swedish property market.
Sources: Capital Economics, Statistics Sweden, Knight Frank
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.
3) Foreign buyers will increasingly target Sweden’s real estate market for its stable economy and political environment
Foreign buyers are increasingly interested in Sweden's real estate market due to its stable economy and political environment.
In 2023, foreign ownership of holiday homes in Sweden was over 6%, showing a clear trend of growing international interest. This trend continued into 2024, with a 6.3% increase in foreign ownership of second homes, excluding Denmark, Norway, and Germany. This indicates that Sweden is becoming a hotspot for international property investors.
Real estate agencies are buzzing with inquiries from international buyers. Knight Frank has observed that more prospective buyers are eyeing Sweden, drawn by recent price falls and a weak Krona. This currency situation makes Swedish real estate a more attractive investment for overseas buyers looking for good deals.
Sweden's economic stability is a major attraction for foreign investors. The country's strong GDP growth and economic resilience make it a reliable place to invest compared to other countries. This economic strength is a key factor in why international buyers are considering Sweden as a prime location for property investment.
Moreover, Sweden's high ranking in global stability and quality of life indices adds to its appeal. These factors make Sweden not just a place to invest, but a desirable location to own property. The combination of economic stability and quality of life is a powerful draw for those looking to invest in real estate.
Sources: SCB, ING Think, Knight Frank
4) Stockholm rents will rise moderately as rental demand exceeds supply
Stockholm's population is on the rise, with 19,530 new residents added last year.
This growth is fueled by both local and international migration, leading to a 20% increase in the population over the past decade. However, the city is struggling to keep up with the demand for rental properties. Imagine waiting 9.4 years just to get a rental unit in Greater Stockholm—it's a real challenge for many.
With a population of 2.4 million, there are 775,000 people on the waiting list for rentals. This shows a clear mismatch between the number of available units and the number of people looking for a place to live. The demand is high, and the supply just isn't meeting it.
Rental prices are climbing steadily. In 2023, the average rent in Stockholm went up by 4.5% to SEK 8,131 (EUR 720) per month. This isn't a new trend; rents increased by 2.9% in 2022 and 2.5% in 2021. It's a consistent pattern that potential renters need to be aware of.
For those considering a move to Stockholm, it's important to know that the rental market is competitive. The demand for rental properties is outpacing supply, which means rents are likely to continue rising. This is something to keep in mind when planning your budget.
Understanding the dynamics of Stockholm's rental market can help you make informed decisions. With the city's growing population and limited rental supply, finding a rental property might take time, and prices are expected to keep climbing.
Sources: Global Property Guide, World Population Review, CBRE IM
5) Gothenburg’s property prices will rise moderately thanks to strong economic growth and a growing population
Gothenburg is set to see a moderate rise in property prices thanks to its strong economy and growing population.
Back in 2023, while cities like Stockholm and Malmö faced big drops in house prices, Gothenburg only saw a small dip of 2.3%. This shows that Gothenburg's housing market is more stable compared to other major Swedish cities.
The city's population is growing, and with it, the demand for housing. Gothenburg is on track to create 120,000 jobs by 2035, which naturally boosts the need for homes. The services sector is especially hungry for skilled workers, drawing more people to the area.
Economically, Gothenburg is holding steady. The region's economic tendency indicator might say 'normal weak,' but it actually points to a stable economic environment. Job growth here is outpacing Stockholm and Malmö, with annual rates of 0.6% and 0.8%. Plus, the unemployment rate was a low 5.8% in January 2024, which bodes well for property prices.
Big infrastructure projects like the West Link railway tunnel and the Haga commuter station are in the works. These developments are set to enhance mobility and accessibility in Gothenburg, likely giving property values a boost. The government is also investing heavily, with an estimated EUR 100 billion earmarked for property and infrastructure projects up to 2035.
Sources: Global Property Guide, Invest in Gothenburg, Move to Gothenburg
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6) Stockholm’s housing prices may slightly decrease as supply starts meeting demand
The housing market in Stockholm is showing signs of a slight decline in prices as supply begins to catch up with demand.
One reason for this trend is the increase in housing construction permits. Although there was a dip in new permits in early 2023, forecasts suggest a slight uptick in the coming years, hinting at more homes being built. This means more options for buyers, which could ease the pressure on prices.
Another factor is the completion rate of new housing projects. In 2023, the number of finished apartments jumped by 21%, reaching 65,600. Even if new projects are starting slower, the ones already in the pipeline are wrapping up quickly, adding to the available homes.
Economic forecasts also play a role, predicting a stabilization or decline in housing demand due to a weak economy and high interest rates. This could lead to a slight dip in prices as the market balances out. The Swedish central bank's decision to raise interest rates to 4% in May 2023 has made it tougher for buyers to afford homes, pushing this trend further.
For potential buyers, this means a market where affordability might improve as more homes become available and prices stabilize. It's a shift from the high-demand, low-supply scenario that has dominated in recent years.
Keep an eye on these developments if you're considering buying property in Stockholm. The market dynamics are changing, and it could be a good time to explore your options.
Sources: Global Property Guide, CBRE, Swedish Bankers Association
7) Rental yields in smaller cities like Uppsala will rise as people relocate from larger urban centers
Rental yields in smaller cities like Uppsala are on the rise as more people choose to leave larger urban centers.
In recent years, especially in 2023 and 2024, Uppsala has seen a noticeable influx of working-age families. This shift has naturally led to increased demand for rental properties in the area. Apartments, in particular, are in high demand, and this trend is pushing rental prices up.
Uppsala's rental market is already showing signs of this increased demand. The average gross rental yield here is higher than in larger cities like Stockholm and Gothenburg. Studio apartments in Uppsala, for instance, offer better returns compared to those in bigger cities, partly due to rising rental prices.
Adding to this, Uppsala is experiencing a housing shortage, which is further driving up rental yields. The city's economic development, bolstered by its strong local identity and vibrant civil society, makes it an attractive spot for both tourists and internal migrants. The presence of a university fuels innovation and entrepreneurship, drawing even more people to the city.
There's also a noticeable increase in property development investments. Projects like Parkhusen Block 2 are being completed, indicating a growing interest in Uppsala’s real estate market. This development is a clear sign of the city's potential for future growth.
With these factors in play, Uppsala is becoming a hotspot for property investors. The combination of a strong local economy, a vibrant community, and a growing population makes it a promising location for those looking to invest in real estate.
Sources: Global Property Guide, OECD, Cision
8) Rents in university towns like Lund will rise with growing student populations and limited housing supply
Lund University is experiencing a surge in student numbers, with 47,000 enrolled annually by 2024.
This includes a notable 25% of international students, adding to the vibrant mix but also intensifying the demand for housing in the area. As more students flock to Lund, the pressure on the local housing market is palpable.
In Sweden, and especially in university towns like Lund, there's a chronic shortage of housing. The construction of new homes has slowed, leaving the market with historically low levels of available housing. This scarcity is a major driver of rising rents.
Rental prices in Lund are climbing, with LU Accommodation announcing rent increases due to inflation. Students and residents often share stories of the struggle to find affordable places to live, as landlords capitalize on the competitive market.
With the limited housing supply, landlords in Lund can charge higher rents, making it tough for students to secure budget-friendly options. The situation is exacerbated by the slow pace of new housing developments.
As the student population continues to grow, the housing crunch in Lund is unlikely to ease soon, keeping rental prices on an upward trajectory.
Sources: LU Accommodation Rent Increases, Lund University Enrollment, Swedish Residential Market Analysis
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.
9) Interest in Malmö's city center will drop as buyers prefer quieter, less crowded neighborhoods
Malmö's city center is losing its charm for potential property buyers.
One big reason is the steep property prices in the city center. Buying an apartment there costs about 43,142.86 kr per square meter, while in the suburbs, it's around 27,680.56 kr per square meter. This price gap makes the suburbs a more attractive option for those looking to save money.
Noise and traffic are also pushing people away from the city center. Over 95,000 residents deal with noise levels above 55 dB, which can be as loud as a vacuum cleaner. This kind of noise pollution is a turn-off for buyers who want peace and quiet. Surveys show that people are leaning towards larger homes and green spaces, which are more common in the suburbs.
Families and older folks are increasingly drawn to quieter areas. They want less crowded, more peaceful places to live, and the suburbs fit the bill. New residential projects in these areas are popping up to meet this demand, offering bigger homes and green spaces that appeal to these groups.
Public transportation improvements have made commuting from the suburbs to the city center easier. This better connectivity means people don't feel the need to live right in the city center, opting instead for the tranquility of suburban life.
Sources: Leverage Edu, Political Ecology Network, Living Cost, Business Wire
10) City center luxury apartments will stay in demand for their prime locations and upscale features
Luxury apartments in city centers are in high demand because of their prime locations and high-end features.
In 2023, the average house price in Stockholm hit SEK 6.69 million, underscoring the strong demand for these properties. This demand is fueled by the limited availability of land for new developments, making existing luxury apartments even more desirable. City centers offer a unique blend of convenience and prestige, attracting those who value both lifestyle and investment potential.
The appeal of city living is evident from the 775,000 people registered as needing a rental unit in Greater Stockholm by the end of 2022. This long waiting list highlights the consistent high demand for prime real estate locations in urban areas. The influx of high-net-worth individuals seeking city center properties further boosts the demand for luxury apartments, as they are drawn to the vibrant culture and amenities these areas offer.
Real estate agencies note that cities like Stockholm, Gothenburg, and Malmö are expected to outperform the European average in rental growth. This trend suggests that luxury urban apartments are not only popular but also a sound investment. Buyers are willing to pay a premium for properties that offer high-end features and amenities, reflecting a focus on quality and exclusivity.
Sources: Global Property Guide, CBRE, SCB
11) Updated property tax laws will shape investment strategies, especially in high-demand areas
Changes in property tax laws can significantly influence investment strategies, especially in high-demand areas.
In 2024, Sweden made a tweak to its municipal property tax, setting it at 0.75% of the property's taxable value, with a cap of SEK 9,525 for residential buildings. This might seem minor, but in cities like Stockholm, where property prices are high and climbing, it can affect how investors calculate potential returns. Imagine owning a property in Stockholm, where the average price per square meter is €9,744, and you’ll see why even a small tax change matters.
Historically, Sweden has adjusted property taxes to fund higher investments and energize the housing market. This means that even slight tax law changes can lead to significant shifts in investment strategies. Investors are always on the lookout to maximize returns, and a changing fiscal environment can make them rethink their moves.
In bustling areas like Stockholm and Gothenburg, where property prices are on the rise, tax changes can make or break the appeal of an investment. Stockholm, for instance, has seen a quarterly growth of 1.2% in property prices. With such high demand, driven by a diverse population and strong rental growth, any tax adjustment could sway investor decisions as they balance potential costs against expected returns.
Investors in these high-demand areas are particularly sensitive to tax changes. They know that even a small increase in property tax can impact their bottom line, especially when property prices are already steep. This is why understanding the local tax landscape is crucial for anyone looking to invest in Swedish real estate.
So, if you're considering buying property in Sweden, keep an eye on these tax laws. They might just be the key to unlocking the best investment strategy in a market where every percentage point counts.
Sources: Skatteverket, Hurghadians Property, IMF
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12) Young professionals will boost demand for modern city-center apartments with excellent transport links
Young professionals are flocking to urban areas due to labor shortages in fields like IT, healthcare, and engineering.
In 2023, Sweden actively recruited foreign workers to fill these gaps, highlighting a significant trend. This movement has sparked a surge in demand for rental properties in city centers, as young professionals seek convenient living arrangements. Real estate reports from 2023 and 2024 emphasize the growing popularity of city center apartments among this group.
These young adults are drawn to modern living spaces with excellent transport links. Sweden's commitment to sustainable mobility aligns perfectly with this preference, making city center apartments with efficient public transport systems highly attractive. The convenience of urban living is a major selling point.
Statistics show that young adults are more inclined to use public transport for their daily commutes and other journeys. This preference is bolstered by government efforts to enhance public transport infrastructure, further increasing the allure of city living. The ease of getting around without a car is a big plus for many.
As cities continue to develop their transport networks, the appeal of urban apartments grows. Young professionals are not just looking for a place to live; they want a lifestyle that offers convenience and connectivity. This trend is reshaping the real estate market, with a clear focus on urban centers.
Sources: Y-Axis, Savills, DiVA Portal
13) Immigrant influx will drive demand for affordable housing in diverse neighborhoods
Sweden is seeing a steady rise in immigration, with projections nearing 98,000 newcomers annually.
As more people move to Sweden, especially in cities like Stockholm, the demand for affordable housing is skyrocketing. Rent-regulated apartments are in high demand because they offer cheaper living in great locations. This means that as more immigrants arrive, finding a place to live becomes even tougher.
There's a significant housing shortage in Sweden, according to government reports. This shortage creates bottlenecks, leaving many immigrants to fend for themselves in finding housing. The Migration Agency can't accommodate all asylum seekers, which makes the need for affordable housing even more pressing.
Immigrants often prefer settling in larger cities, which puts extra pressure on urban housing markets. This trend is particularly noticeable in areas with more job opportunities, where the competition for housing is fierce.
With the influx of immigrants, there's a growing need for affordable housing in diverse neighborhoods. This is crucial as it helps integrate newcomers into the community, providing them with a stable place to live while they establish themselves.
As the demand for housing continues to rise, the challenge will be to create enough affordable options to meet the needs of a growing population. This is especially important in urban areas where the job market is thriving, and the need for housing is most acute.
Sources: SCB, Tandfonline, OECD iLibrary
14) Smart home technology will attract tech-savvy buyers as a key selling point for new properties
In Sweden, smart home technology is on the rise, and it's not slowing down anytime soon.
Back in 2023, the Swedish smart home market was valued at USD 781.0 million, and it's expected to skyrocket to USD 3406.7 million by 2030. This shows a huge appetite for smart gadgets among Swedes. People are really into homes that make life easier and more efficient.
Surveys back this up, with a 2022 study showing that 68% of potential buyers want homes with smart systems. This means a lot of folks are on the lookout for properties that come with the perks of smart tech, like convenience and energy savings.
Real estate listings in Sweden are catching on, highlighting smart home features to lure in tech-savvy buyers. The appeal? Smart homes offer energy efficiency and better security, which are big deals for today's buyers. Plus, the Swedish government is all in, pushing for energy-efficient tech and offering incentives to get people on board with smart appliances.
So, if you're thinking about buying a place in Sweden, keep an eye out for these tech-savvy homes. They're not just trendy; they're becoming the norm. With the government's backing and consumer interest, smart homes are set to become a key selling point in the property market.
Sources: NextMSC Report, NextMSC News, Zeel Project Blog, Statista
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.
15) Virtual reality tours will become more popular, enabling buyers to view properties remotely and decide faster
Virtual reality tours are changing how people buy property.
In 2023, the virtual tour market was valued at $10.52 billion, and it's expected to grow even more. This boom is largely due to the real estate industry's expansion, with virtual tours making up a 43.9% share of the market. People love these immersive experiences, and it's clear why they're becoming a staple in property buying.
More than half of adults have tried a virtual tour, and 67% of home buyers prefer listings that offer them. This shows a strong demand for virtual tours in real estate. Young adults, especially those between 18 and 34, are 130% more likely to book a property if they can take a virtual tour first. This tech-savvy group is driving the trend.
VR technology is getting better and cheaper, making it easier for everyone to use. As VR headsets become more user-friendly and affordable, more industries, including real estate, are jumping on board. This means virtual reality tours are becoming a standard service offered by real estate agencies.
With these advancements, virtual tours are not just a luxury but a necessity in today's market. They allow buyers to explore properties from anywhere, making the decision process faster and more efficient. This is especially useful for those who can't visit in person, offering a convenient solution for remote property viewing.
16) Coastal areas in Västra Götaland will draw more buyers for their scenic beauty and thriving local economies
The coastal areas of Västra Götaland are becoming a hot spot for property buyers, thanks to their stunning landscapes and thriving local economies.
In 2023, the average price for a coastal vacation home in this region climbed by 3.9%, reaching 2,650 €/m², showing strong demand. This increase is notable as it surpasses the national average, with house prices in these coastal areas rising by 5.7% year-over-year, compared to the national average of 3.3%.
Tourism is a big driver here. Gothenburg, a major city in Västra Götaland, attracts over 5 million overnight stays annually, which pumps money into local businesses and boosts the economy. Tourism accounts for about 3% of the region’s GDP, creating jobs in hospitality, retail, and transportation, which in turn draws more people to settle in the area.
Infrastructure is another key factor. Västra Götaland is well-connected, with major airports like Gothenburg Landvetter Airport making it easy for both domestic and international visitors to get there. Investments in new hotels, restaurants, and entertainment venues are enhancing the quality of life, making the area even more appealing.
Local economies are thriving, partly due to the influx of tourists and new residents. This growth is supported by the region's strategic location and the development of amenities that cater to both locals and visitors. The combination of natural beauty and economic opportunity is a powerful draw for potential buyers.
With its scenic beauty and growing local economies, Västra Götaland's coastal areas are set to attract even more buyers. The region's appeal is further enhanced by its robust infrastructure and vibrant tourism industry, making it a prime location for property investment.
Sources: Spanish Property Insight, Travel and Tour World
17) Skåne will attract more interest due to its closeness to Denmark and better cross-border commuting options
The southern region of Skåne is gaining popularity thanks to its closeness to Denmark and better commuting options.
In 2023 and 2024, 19,000 people regularly commuted between Sweden and Denmark, a significant increase. The Öresund Bridge has been a game-changer, making it easier for people to move and work across borders, boosting both mobility and economic ties.
Skåne's real estate market is on the rise, with property prices climbing faster than in other Swedish regions. This is largely because of population growth in cities like Malmö and Helsingborg, which has driven up housing demand. Danish buyers are also showing interest, snapping up properties due to Skåne's convenient location near Copenhagen.
Many are drawn to Skåne for its improved commuting options and proximity to Copenhagen. Media often highlights Skåne as a prime residential area, focusing on these perks. Government efforts to boost regional connectivity are further fueling the growth of the Øresund Region, with Skåne at its heart.
Surveys reveal a strong interest in living in Skåne, thanks to its easy access to Denmark. Government initiatives are enhancing regional links, making the area even more appealing. The Øresund Region is thriving, with Skåne playing a key role in this development.
Sources: GI Hub, OECD Cogito, Nordic Labour Journal
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.