Residential Real Estate Leases - Sweden

The Residential Real Estate Leases market market in Sweden is expected to generate a revenue of US$24.42bn in 2024.
Among the market segments, Apartment Leases holds the largest share, with a projected market volume of US$20.32bn in 2024.
Over the forecast period from 2024 to 2029, the revenue is anticipated to grow at an annual growth rate (CAGR 2024-2029) of 3.78%, resulting in a market volume of US$29.39bn by 2029.
The demand for residential real estate leases in Sweden has surged due to the country's stable economy and high quality of life.

Definition:

The residential real estate leases market refers to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums. The lease outlines the terms of the rental agreement, including the duration of the lease, the amount of rent to be paid, and the responsibilities of both the landlord and the tenant. The lease may also include provisions for security deposits, maintenance and repair obligations, and renewal options.

Structure:

The residential real estate leases market comprises the lease of houses and apartments.

Additional information:

The residential real estate leases market includes the following KPIs: the revenue generated by real estate leases, the number of real estate leases, the average revenue per real estate lease, the share of dwelling type of tenants, and the average room per tenant. The dwelling type shares comprise the shares of the renter population that lives in houses and apartments.

Residential house and apartment leases

Real estate transactions
Commercial real estate
Accommodation services, such as Airbnb

The Residential Real Estate Leases market in Sweden has been experiencing significant growth in recent years.

Customer preferences: One of the key customer preferences driving the growth of the Residential Real Estate Leases market in Sweden is the increasing demand for flexible and hassle-free housing solutions. Many individuals and families are choosing to rent rather than buy property, as it offers them the flexibility to move easily and does not require a long-term commitment. Additionally, renting allows them to avoid the financial burden of a mortgage and the responsibility of property maintenance.

Trends in the market: One of the major trends in the Residential Real Estate Leases market in Sweden is the rise of co-living spaces. Co-living spaces are becoming increasingly popular among young professionals and students who are looking for affordable and social living arrangements. These spaces offer shared living areas and amenities, such as kitchens, common rooms, and laundry facilities, which foster a sense of community among the residents. This trend is driven by the desire for a more affordable housing option and the opportunity to meet like-minded individuals. Another trend in the market is the increasing focus on sustainability and energy efficiency. Many renters in Sweden are prioritizing eco-friendly housing options that minimize their environmental impact. This includes features such as energy-efficient appliances, renewable energy sources, and sustainable building materials. Landlords and property developers are responding to this demand by incorporating these features into their properties, which not only attract environmentally conscious tenants but also help reduce energy costs in the long run.

Local special circumstances: Sweden has a unique rental market with strong tenant protection laws. Rent control and strict regulations on rent increases ensure that tenants have stable and affordable housing options. This stability and security make renting an attractive option for many individuals and families, especially in a market where property prices are high. Additionally, the Swedish government provides subsidies and financial assistance to low-income individuals and families, further supporting the rental market.

Underlying macroeconomic factors: The growth of the Residential Real Estate Leases market in Sweden can be attributed to several underlying macroeconomic factors. The country has a strong and stable economy, with low unemployment rates and high disposable incomes. This means that individuals and families have the financial means to rent properties and are willing to invest in a comfortable and convenient living arrangement. Additionally, Sweden has a high rate of urbanization, with many people moving to cities for work and educational opportunities. This urbanization trend drives the demand for rental properties in urban areas, where the market is particularly strong. In conclusion, the Residential Real Estate Leases market in Sweden is experiencing growth due to customer preferences for flexibility and hassle-free housing, as well as the rising popularity of co-living spaces and the focus on sustainability. The local special circumstances, such as strong tenant protection laws and government subsidies, further contribute to the growth of the market. The underlying macroeconomic factors, including a strong economy and high rate of urbanization, also play a significant role in driving the demand for rental properties in Sweden.

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate Leases - Sweden

Volume

Analyst Opinion

Revenue

Affordability

Real Estate Type

Living Space

Methodology

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