Real Estate - Sweden | Statista Market Forecast

In 2024, the projected value of the Real Estate market market in Sweden is expected to reach US$4.01tn.
The market segment that dominates this industry is Residential Real Estate, with a projected market volume of US$3.24tn in 2024.
Looking ahead, it is estimated that the market will experience an annual growth rate of 2.84% between 2024 and 2029 (CAGR 2024-2029), resulting in a market volume of US$4.61tn by 2029.
When comparing these figures globally, it is worth noting that United States is expected to generate the highest value in the Real Estate market market, reaching US$132.0tn in 2024.
The demand for eco-friendly and sustainable housing in Sweden's real estate market is on the rise.

Definition:

The real estate market refers to the transaction of properties, including residential properties (such as houses and apartments) and commercial properties, such as office buildings and industrial properties. Apart from property sales, this market includes leases and the value of real estate.

Structure:

The real estate market comprises residential and commercial real estate. The residential real estate market covers real estate transactions and leases, and residential real estate leases are divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and real estate renters as well.

Residential real estate (houses and apartments)
Commercial real estate (office buildings, retail spaces, warehouses, industrial properties)

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Real Estate market in Sweden has experienced significant growth and development in recent years.

Customer preferences: One of the key customer preferences in the Swedish Real Estate market is a focus on sustainability and energy efficiency. Swedish buyers are increasingly looking for properties that are environmentally friendly and have low energy consumption. This trend is driven by both consumer awareness of climate change and government regulations promoting sustainable housing.

Trends in the market: One of the major trends in the Swedish Real Estate market is the increasing demand for urban living. With a growing population and limited space in urban areas, there is a high demand for housing in cities. This has led to a rise in the construction of apartment buildings and the redevelopment of existing urban areas. Additionally, there is a trend towards mixed-use developments, where residential, commercial, and retail spaces are combined in one building or complex. Another trend in the Swedish Real Estate market is the rise of co-living and co-working spaces. These shared living and working arrangements are becoming popular among young professionals and startups. Co-living spaces offer affordable housing options and a sense of community, while co-working spaces provide flexible office solutions for entrepreneurs and freelancers.

Local special circumstances: Sweden has a unique housing market due to its strong rental sector. Renting is a common practice in Sweden, with a large percentage of the population living in rental properties. This is partly due to strict regulations that make it difficult for landlords to evict tenants, providing stability and security for renters. As a result, the rental market in Sweden is highly competitive, with high demand and limited supply.

Underlying macroeconomic factors: The strong performance of the Swedish economy has contributed to the growth of the Real Estate market. Low interest rates and a stable financial system have made it easier for buyers to access credit and invest in property. Additionally, Sweden has a high rate of homeownership, with government policies supporting homeownership through subsidies and tax incentives. In conclusion, the Real Estate market in Sweden is developing in response to customer preferences for sustainability and urban living. The market is characterized by a focus on energy efficiency, the construction of apartment buildings, and the rise of co-living and co-working spaces. The strong rental sector and supportive government policies also contribute to the growth of the market. Overall, the Swedish Real Estate market is a dynamic and competitive sector that continues to evolve to meet the needs of its customers.

Data coverage:

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

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, 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:

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.

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

The global housing market has slowed amid high inflation and soaring borrowing costs. Homeownership is one of the most universal signs of success and prosperity: It serves both as a source of stable and secure housing and a long-term investment. After the global financial crisis, property prices rose in many countries and especially in advanced economies. For more than a decade after that, the housing market has been on an upward trajectory, culminating in the housing boom during the COVID-19 pandemic. However, housing shortages in highly competitive markets, the recent rapid house price growth, soaring inflation, and consequently, some of the highest mortgage interest rates recorded in the past 10 years have led to the market cooling.

Japan is a country with very limited space for buildings, as mountains make up about three-quarters of its landmass. The country’s fairly large population is concentrated in major cities. The metropolitan area of Tokyo, home to a staggering one-third of the population, is the center of economic and political activity. As such, it boasts the highest property prices across the country. Driven by the weak yen, a tourism boom, and global investment, property and land prices surged in 2023 and 2024. Even some rural regions, which are generally confronted with economic stagnation and depopulation tendencies, have been affected by this trend.

The real estate market all around the world has been affected by the global pandemic. This historic event has changed the way we live, consume, and work. The real estate market in the Asia-Pacific region has experienced some turbulent and diverse changes depending on the sector, property type, and location. The commercial real estate segment, which includes offices, retail outlets, logistics centers, and many more, had to adapt to new conditions and demands. Furthermore, residential real estate suffered decreases in rental and capital values in some areas, with the exception of prime real estate, which experienced healthy growth in most locations.

Soaring inflation and aggressive mortgage interest rate hikes cooled the European housing market after a nearly decade-long period of growth. Since 2015, house prices in the European Union have grown by about 50 percent. When inflation in Europe started to rise at an alarming rate in 2021, the European Central Bank increased interest rates, resulting in substantially higher mortgage interest rates and a decline in homebuying. But how important is homeownership for Europeans?

Real Estate - Sweden

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