Photo credit: Patrik Svedberg/imagebank.sweden.se
Property price increases in Sweden in the past year have been extraordinary, fueled largely by the pandemic and remote working. The race for space caused by working from home, coupled with a supply shortage, has led to a red-hot property market. The result has been booming house prices both in and outside of major Swedish cities. A second effect has been that the square metre price of larger apartments has outperformed that of smaller apartments.
Latest property market figures
House prices increased by 17% nationally for the 12 months preceding March 2021. The biggest annual increase was in Malmö, where house prices increased by a whopping 20%. Prices have also been skyrocketing in Stockholm and Gothenburg with house prices increasing by 19% and 16% respectively. The average price of a house in Sweden is now over 4 million SEK and over 7 million SEK in Stockholm.
Apartment prices increased by 8% nationally for the same period. The average price of an apartment in Sweden is now 44 920 SEK per metre squared and 102 525 SEK per metre squared in central Stockholm.
Space outside of cities has also been at a premium with a trend towards people moving away from urban areas. This has also been helped by Sweden’s infrastructure which provides broadband coverage in most countryside locations.
Increases of over 20% in eleven of Stockholm’s municipalities
House prices in Stockholm increased by over 20% in the last year in eleven of Stockholm’s municipalities; Lidingö topped the charts with an increase of 27.2%, closely followed by Nacka (26.3%) and Ekerö (24.8%). Södertälje was the Stockholm suburb with the most modest increase at just 9.2%.
Market distortion or the new normal?
While the recent increases could be a market distortion caused by the pandemic, this seller’s market could also reflect the new normal as supply shortages are unlikely to be resolved anytime soon. Time will tell but the current situation has also left estate agents wondering how it will all end.
Stressful market for internationals to navigate
Home buyers need not just large wallets but also commitment to active searching. The fast sale process in Sweden combined with an extremely competitive market is particularly stressful for those unfamiliar with the Swedish property market. Mistakes are easily made and very costly; The average price of a house in Stockholm has increased by an eye-watering 1.1 million SEK in the last 12 months alone. As a potential buyer, knowing what you are doing and committing to is therefore essential.
Need advice about purchasing a home in Sweden?
Relocate To Sweden helps internationals who wish to explore the property market in Sweden and buy a home. We offer a range of property services including search and purchase process consultancy to help you get the best property for your needs and budget and to ensure that you are fully informed about the whole process. For more information and to book a consultation, email info@relocatetosweden.com
Relocate to Sweden provides customised assistance for all your staff’s relocation and on-going support needs, including fast track help with work permits and extensions, accommodation, local registration, schools and intercultural training. Read more about our relocation services at www.relocatetosweden.com or follow us on social media for tips and advice. You can also Email us at info@relocatetosweden.com or call us on +46 8 361011 for more information.
