Residential Real Estate - Sweden

Sweden

The Residential Real Estate market market in Sweden is anticipated to reach US$3.24tn by the year 2024.
It is projected to exhibit a compound annual growth rate (CAGR 2024-2029) of 3.19%, leading to a market volume of US$3.79tn by 2029.
When compared globally, the highest value of Real Estate will be generated China, amounting to US$112.9tn in 2024.
The demand for luxury waterfront properties in Sweden has been steadily increasing, with buyers seeking exclusive locations and stunning views.

Key regions: Europe, Brazil, France, Asia, United States

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Analyst Opinion

The Residential Real Estate market in Sweden has experienced significant growth and development in recent years, driven by various factors such as customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. Customer preferences in the Swedish Residential Real Estate market have been shifting towards more sustainable and energy-efficient properties. This is driven by a growing awareness of the environmental impact of buildings and a desire for lower utility costs. As a result, there has been an increased demand for properties with green certifications and energy-efficient features, such as solar panels and insulation. In terms of market trends, there has been a strong demand for urban living in major cities like Stockholm, Gothenburg, and Malmö. This trend is driven by the convenience and amenities offered by city living, such as proximity to work, shopping, and entertainment. As a result, property prices in these urban areas have been steadily increasing, making it a lucrative market for real estate investors. Another trend in the Swedish Residential Real Estate market is the rise of co-living and co-working spaces. This trend is driven by the increasing number of young professionals and digital nomads who value flexibility and community. Co-living spaces provide affordable housing options with shared amenities, while co-working spaces offer flexible workspaces with networking opportunities. These trends have been particularly popular in urban areas with a vibrant startup scene. Local special circumstances also play a role in the development of the Residential Real Estate market in Sweden. One such circumstance is the high level of urbanization in the country, with a significant portion of the population living in cities. This concentration of population in urban areas creates a high demand for housing, driving up property prices and creating opportunities for real estate developers. Underlying macroeconomic factors also contribute to the development of the Residential Real Estate market in Sweden. The country has a stable economy with low unemployment rates and a strong social welfare system. This creates a favorable environment for investment in real estate, as people have the financial means to purchase properties and banks are willing to provide mortgage loans. In conclusion, the Residential Real Estate market in Sweden is developing in response to customer preferences for sustainable and energy-efficient properties, market trends towards urban living and co-living/co-working spaces, local special circumstances of high urbanization, and underlying macroeconomic factors of a stable economy. These factors have contributed to the growth and development of the market, making it an attractive investment opportunity for both domestic and international investors.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and 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 are considered at a country-specific level.