Real Estate - Sweden

Sweden

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 2.83% 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.

Key regions: United States, China, Japan, Germany, United Kingdom

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Analyst Opinion

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.

Methodology

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.