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Where are the best places to invest in Sweden right now? Is Stockholm still the top pick, or are cities like Gothenburg, Malmö, and Uppsala 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, developers, and clients who invest across the country. 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 Sweden 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.
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1) Malmö’s Västra Hamnen is gaining interest for its modern waterfront projects and high rental returns
Västra Hamnen in Malmö is a magnet for investors with its sleek waterfront developments and enticing rental returns.
In this buzzing district, property prices have been climbing steadily, driven by major players like Wihlborgs Fastigheter pouring money into new projects. This isn't just about buildings; it's a vote of confidence in Västra Hamnen's future growth and profitability.
Investors are drawn to the area because rental yields range from 4.41% to 7.29%, which is quite competitive compared to other parts of Malmö. Wihlborgs' recent reports show a boost in rental value and income, underscoring the area's potential for high returns.
The rental market in Malmö is thriving, with rental income jumping by 5.1% in 2023. High occupancy rates for office and retail spaces highlight the strong demand, making Västra Hamnen a promising spot for consistent rental income.
Urban development plans, like a new university building, are set to make Västra Hamnen even more appealing. These projects are expected to draw in more residents and businesses, further boosting the area's attractiveness.
Sources: Wihlborgs Interim Report January–March 2023, Global Property Guide: Gross Rental Yields in Sweden, Global Property Guide: Sweden's Residential Property Market Analysis 2024
2) Linköping’s Vallastaden district is attracting interest for its innovative housing and sustainable living options
Vallastaden in Linköping is catching eyes with its innovative housing designs and sustainable living options.
In 2024, Vallastaden was celebrated at the Build Europe Awards for its pioneering sustainable housing projects. This recognition highlights the district's commitment to both innovation and sustainability, making it a standout in the European housing sector. The district's approach is not just about building homes; it's about creating a community that thrives on eco-friendly principles.
Between 2023 and 2024, Vallastaden saw the development of over 1,000 homes by 40 different actors in just five years. This rapid and diverse development set a national record, showcasing a unique collaboration between the City of Linköping, Linköping University, architectural firms, and the business community. This collective effort is a testament to the district's focus on sustainable urban development.
In 2023, a part of Vallastaden called Generatorn won the Student Housing Award for its innovative and sustainable design. This award underscores the district's ability to meet the needs of its residents while enhancing the quality of higher education. The design of Generatorn is not just about aesthetics; it's about creating a living space that supports a sustainable lifestyle.
Vallastaden's construction methods, such as the use of mass timber design and glulam columns, have been recognized for their environmental benefits. These methods promote eco-friendly living options, making Vallastaden a model for sustainable construction. The use of these materials not only reduces the carbon footprint but also enhances the overall living experience.
Sources: Build Europe, Linköping Municipality, Swedish Wood
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.
3) Lund's Science Village is booming with its tech industry growth and high student housing demand
Lund's Science Village is quickly becoming a real estate hotspot thanks to its thriving tech industry and student housing demand.
The tech scene here is buzzing, with numerous tech companies and start-ups flocking to the area. This growth is fueled by major investments, like the SEK 242 million from Wihlborgs, a real estate company. Such developments are drawing in professionals eager for new job opportunities.
Student housing is another big driver. Lund University, home to over 47,000 full-time students, including many from abroad, is pushing the demand for more housing. New student housing projects are underway to cater to this need, making the area even more appealing to students.
Infrastructure is also getting a boost. The new tramline connecting Science Village to the rest of Lund improves accessibility and livability, making it a more attractive place for both students and professionals. This connectivity is a key factor in the area's growing real estate market.
Property prices in Science Village have seen a 6.5% increase in 2023, reflecting the rising interest in buying property here. This trend highlights the area's appeal as a desirable place to live and invest.
With these developments, Science Village is not just a place to live but a vibrant community where tech innovation and academic life thrive together, making it a prime spot for real estate investment.
Sources: Science Village Presentation, Lund University Overview, Cision Report
4) Uppsala’s city center is booming with rising property values thanks to its closeness to Stockholm and strong economy
Uppsala's city center is seeing a significant rise in property values due to its strategic location and economic vitality.
Being close to Stockholm, one of Sweden's largest cities, makes Uppsala a prime spot for commuters and students. This proximity is a major draw, pushing up the demand for housing. In 2023, the average house price in Uppsala was about SEK 3.5 million, which is notably higher than in many other Swedish cities, showing a robust real estate market.
What's interesting is that while the national house price index has been on a decline, Uppsala's has been on the rise. This highlights the unique market dynamics at play, largely influenced by its location and thriving local economy. Uppsala's economy is buzzing with low unemployment rates and a lively startup scene, making it an attractive place to live and work.
The planned expansion of railway tracks between Stockholm and Uppsala is set to boost connectivity even further. This development is expected to support economic growth and, in turn, continue to drive up property values. Uppsala's population is also growing, thanks to its strong economy and renowned educational institutions, which adds to the housing demand.
For those considering buying property in Uppsala, it's worth noting that the city is not just a commuter hub but also a place with a vibrant local culture and community. The combination of economic opportunities and quality of life makes it a compelling choice for potential homeowners.
Sources: Global Property Guide, Hemavi Blog, Railway Gazette, European Commission
5) Norrköping's Industrilandskapet is gaining interest with new homes and cultural attractions revitalizing the area
Norrköping's Industrilandskapet is buzzing with new life thanks to major investments in housing and culture.
Take the Inner Harbour project, for instance. It's set to turn 23 hectares into a lively hub with homes, workplaces, and fun spots. By 2023, construction kicked off on 1,000 homes, and there's a plan to double that to 2,000 apartments by 2030. Imagine living in a place with schools, shops, restaurants, cafes, and even an activity park right at your doorstep.
Old industrial buildings are getting a makeover too, becoming art galleries and cultural venues. These spaces now host seminars and meetings, adding a rich cultural vibe to the area. This transformation is expected to boost foot traffic and draw more visitors, making the neighborhood even more attractive.
The city isn't doing this alone. Norrköping has teamed up with several construction and housing companies, showing a strong commitment to urban growth. This partnership, which got the green light in 2018, has been crucial in building the necessary infrastructure like streets and public spaces, paving the way for the area's development.
With these changes, Industrilandskapet is not just about new buildings; it's about creating a community where people want to live, work, and play. The mix of residential and cultural elements is turning it into a vibrant part of the city, attracting both locals and newcomers.
So, if you're thinking about buying property in the country, keep an eye on Norrköping. It's a place where history meets modern living, and the future looks bright. The blend of old and new is creating a unique urban landscape that's hard to resist.
Sources: Nordregio, DiVA Portal, Heartlander Overseas
In this video, 'Sweden Walks: Norrköping industrial landscape', we see the area's revitalization and cultural significance, including large waterfalls and history. Additional videos highlight cultural attractions like 'Norrköping Light Festival 2020'.
6) Karlstad's Inre Hamn is growing with new residential areas and better infrastructure
Karlstad's Inre Hamn is buzzing with growth thanks to new residential areas and improved infrastructure.
One standout project is the construction of the new office building "Skeppet," which is part of a massive SEK 9 billion development initiative. This project is a clear sign of the area's transformation and the significant investment pouring into Karlstad. The local government is also playing a crucial role by investing in infrastructure improvements, which are making the area more accessible and appealing.
These infrastructure upgrades are not just about roads and bridges; they are about creating modern spaces for research, education, and innovation. Enhanced public transportation links are making it easier for people to move around, which is a big draw for both residents and businesses. This accessibility is a key factor in the area's growing popularity.
The community vibe is also getting a boost with the development of new businesses and amenities. The Skeppet Karlstad project, for example, is bringing in trendy restaurants and cafes, adding to the area's lively atmosphere. This is attracting more people who want to live and work in a vibrant community.
Real estate market forecasts are looking positive, with an increased demand for housing in Inre Hamn. This demand is a testament to the area's appeal as an up-and-coming neighborhood. People are eager to be part of this growing community, which is reflected in the rising interest in property here.
All these elements combined are turning Inre Hamn into a hotspot for growth and development. The area's transformation is not just about new buildings; it's about creating a thriving community where people want to live, work, and play.
Sources: RNS PDF, Caverion, Fitch Solutions
7) Gävle's city center is gaining attention for its affordable homes and rising commuter interest
Gävle's city center is catching eyes for its affordable housing and growing commuter interest.
While the Swedish housing market took a hit in 2023, Gävle stood strong, showing resilience that larger cities like Stockholm and Gothenburg couldn't match. This makes Gävle a sweet spot for those seeking budget-friendly living without sacrificing access to big-city jobs.
In 2023, house prices in Greater Stockholm dropped by 6.3% and in Greater Göteborg by 2.3%, making Gävle's housing market more appealing for cost-conscious buyers. It's a place where your money stretches further, offering a chance to own a home without breaking the bank.
The demand for homes in Gävle is climbing, largely because major cities are struggling with affordable housing shortages. People are flocking to Gävle, drawn by the promise of cheaper living and the convenience of commuting to bigger cities for work.
Commuting from Gävle to Stockholm is on the rise, underscoring the city's allure for those who work in the capital but want to live somewhere more affordable. This trend hints that Gävle is becoming a commuter's haven, offering the best of both worlds.
Gävle's strategic location and affordability are turning it into a real estate hotspot. With more people choosing to live here and commute, the city is gaining traction as a prime residential area for those who value both cost and convenience.
Sources: Global Property Guide, Trafikanalys, CBRE, CBRE Real Estate Market Outlook
8) Helsingborg's Oceanhamnen is gaining interest for its waterfront regeneration and modern housing projects
Oceanhamnen in Helsingborg is now a hot spot thanks to its stunning waterfront makeover and sleek new housing.
Property prices here have shot up, with the average price per square foot soaring compared to other areas in Helsingborg. This jump shows just how much people want to live in this part of town.
Everyone's after waterfront homes in Helsingborg, especially in Oceanhamnen. The high prices and scarce availability of these properties tell the story. New housing projects, like those by C.F. Møller Architects, are turning the area into a lively urban hub.
The H+ initiative's urban regeneration project has been a game-changer, making Oceanhamnen a magnet for buyers. This project is all about creating a creative and sustainable district with cutting-edge architecture and tech.
Media buzz has also put Oceanhamnen in the spotlight, making it even more appealing. The area is now seen as a desirable location, thanks to its modern vibe and strategic development.
Sources: Numbeo, C.F. Møller Architects, Hemnet
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.
9) Västerås' Mälarstrand is gaining interest for its new homes and appealing lakeside lifestyle
The Mälarstrand area in Västerås is buzzing with new residential projects, drawing in those who crave lakeside living.
One standout project is Brf Kopparvalvet, featuring 63 owner-occupied apartments and retail spaces, highlighting the high demand for properties here. This surge in interest suggests that property prices are likely climbing, making it a hot spot for potential buyers.
Developers are flocking to Mälarstrand, with Peab leading the charge by building 183 rental apartments on Öster Mälarstrand, set to finish by December 2024. These aren't just homes; they're part of mixed-use developments that include services, shops, parks, and even a harbor, offering a full living experience.
The charm of lakeside living can't be overstated. Locals love Mälarstrand for its serene and vibrant atmosphere, complete with stunning views of Lake Mälaren and well-kept waterfront promenades. This blend of natural beauty and modern amenities makes it a top choice for many.
With its picturesque setting and comprehensive living options, Mälarstrand is more than just a place to live; it's a lifestyle. The area is a magnet for those seeking a balance of tranquility and convenience, making it a prime location for new developments.
Sources: AF Gruppen, Tripper Guide, Europan Europe
10) Hisingen in Gothenburg is booming with rapid urban development and high rental demand
Hisingen in Gothenburg is a hot spot for real estate right now.
One big reason is the rapid urban development happening in the area. New residential projects are popping up, part of a larger trend in Sweden where 43% of construction projects were speculative in 2024. This shows a strong interest in building new homes, and Hisingen is right in the mix.
There's also a growing demand for rental properties in Hisingen. In Gothenburg, rental yields are attractive, with the city center offering yields as high as 6.77% for studios and 6.83% for 1-bedroom apartments. Hisingen, being a desirable area, likely offers similar or even higher yields, making it a magnet for both renters and investors.
International investors are eyeing the Swedish residential market, including Gothenburg, due to strong rental growth. This means Hisingen is likely seeing increased interest from real estate investors looking to capitalize on these favorable conditions.
Vacancy rates in rental properties across Sweden are dropping, suggesting that Hisingen is experiencing a similar trend. This makes it an even more attractive market for real estate investment, as lower vacancy rates often lead to higher rental prices.
With all these factors combined, it's no wonder Hisingen is becoming a hot real estate market. The area is buzzing with activity, and the increasing demand for urban living is only adding fuel to the fire.
Sources: Redfin, Global Property Guide, Cushman & Wakefield, Global Property Guide, CBRE
11) Jönköping's Munksjöstaden is attracting buyers with its mixed-use projects and scenic lake views
Jönköping's Munksjöstaden is a hot spot for property buyers, thanks to its mixed-use developments and scenic lake views.
Imagine living in a place where you can walk from your home to a café or a boutique in minutes. That's the charm of Munksjöstaden's mixed-use development, blending residential and commercial spaces seamlessly. This setup is gaining traction in Sweden, offering a lifestyle that's both sustainable and convenient.
Property values in Munksjöstaden are on the rise, with a recent sale of a 73 m² apartment fetching 2,775,000 SEK. This shows a strong demand, making it a smart investment choice. The area is set to expand further, with plans for 105,000 m² of housing and 20,000 m² of commercial space, ensuring a vibrant community atmosphere.
What truly sets Munksjöstaden apart are its stunning lake views. While specific surveys aren't cited, it's clear these views are a major attraction for those seeking natural beauty in their daily lives. The local municipality backs this development, adding to its allure as a thoughtfully planned urban area.
For those considering a move, Munksjöstaden offers a unique blend of urban convenience and natural beauty. The area's development is not just about buildings; it's about creating a community where people can live, work, and enjoy life seamlessly.
With the support of Jönköping's municipality, Munksjöstaden is poised to become a thriving hub, attracting buyers who value both modern amenities and a picturesque setting. It's a place where the future of urban living is being crafted today.
Sources: UPB, Jönköping Urban Development Vision
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12) Örebro's city center is gaining interest with rising property prices due to its strategic location between Stockholm and Gothenburg
Örebro's city center is seeing rising property prices due to its strategic location between Stockholm and Gothenburg.
Living in Örebro is becoming popular because it's perfectly placed for those who work in Stockholm or Gothenburg but want a quieter home life. This proximity to major cities makes it a top choice for commuters, driving up the demand for housing.
With more people choosing Örebro as their home base, the demand for housing naturally increases, leading to higher property prices. It's a simple case of more people wanting to live there, which pushes prices up.
Transportation improvements have made commuting from Örebro even easier, adding to its charm as a place to live. This enhanced connectivity not only draws in more residents but also boosts the local economy, which helps keep property values stable and on the rise.
Örebro's appeal isn't just about location; it's also about the lifestyle it offers. The city is investing in smart residential areas, making it an attractive option for those looking for modern living spaces. This focus on innovation in housing further supports the upward trend in property prices.
As Örebro continues to grow and develop, its strategic position and improved infrastructure make it a prime spot for property investment. The city's ongoing efforts to enhance its residential offerings ensure that it remains a desirable place to live, keeping the property market competitive.
Sources: Property Prices in Örebro, Innovative Residential Smart Area in Örebro
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.