An overview of the housing market in Sweden

Sweden is the largest country on the Scandinavian Peninsula, part of the European Community, but uses the Swedish krona as its main currency. Its capital, Stockholm, which is sometimes called the capital of Scandinavia, is the economic, political and cultural center of the country, located on 14 islands in the Baltic Sea. The population of the country is about 9.4 million people, about 2.1 million of them live in Stockholm and its suburbs. Stockholm region provides about 30% of the total economy of the country. For a Scandinavian country, the climate here is quite mild thanks to the Gulf Stream. The average temperature in winter does not drop below -15C, and in summer the mercury column rises to + 17C on average. Sweden constantly ranks first in the ratings of the countries with the most stable economy, high living standards, health care, etc. Thanks to such stable indicators, even during the financial crisis, housing prices in Sweden remained practically at the same level. There are no restrictions on the purchase of real estate by foreigners in Sweden. Since May 2009, a new law has been introduced in Sweden allowing the purchase of apartments for personal use, rather than the purchase of ownership rights with the permission of a housing cooperative. Before that, only private houses could be registered as property. You can get a residence permit by opening your own business here. Housing here, as a rule, is bought for permanent residence or education of children. Despite the fact that the demand for rental housing in Sweden is quite high, it is unprofitable to buy apartments for rent here - the annual income does not exceed 5%, and the income tax for non-residents will be about 30%. How to get there The cities of Russia and Sweden are connected by direct flights of Aeroflot, Rossiya, SAS and Yamal airlines. Aeroflot and SAS fly from Moscow and St. Petersburg to Stockholm, and Rossiya - from St. Petersburg to Stockholm. From Moscow to Stockholm the travel time will be approximately two hours, from St. Petersburg - an hour and a half. There is a direct regular flight from Moscow to Gothenburg, which is served by the Yamal airline. Today it is the only direct flight between Moscow and Gothenburg. Real estate market The real estate market in Sweden is relatively young - it opened for foreign investors only in the mid-90s. The Swedish housing market is closely monitored by the state, which does not allow the market to overheat, so real estate speculation is not profitable here. Stockholm and its suburbs , as well as Gothenburg and Malm, are popular among Russian investors, of whom there are very few in Sweden. Also, Russians are interested in buying commercial real estate in Sweden, especially in the field of hotel or retail business. Due to strict environmental laws, the volume of new construction in the country is limited, and the constantly growing domestic demand provokes an increase in the cost of housing. Since the mid-90s. and before the 2008 crisis, the annual growth of real estate in the country was 6-7%. In the period from 1995 to 2007. the real estate price index in Stockholm increased by 119% in real terms, in Malmo - by 185% and in Gothenburg - by 156%. The rapid rise in house prices in Sweden was fueled by the country's booming economy, low interest rates and a limited supply of new housing. Sweden, which is notable for enviable stability, was affected by the crisis on a smaller scale than other European countries. According to the Global Property Guide, in 2009 property prices in the country fell by 2.9%. In 2011, the growth rate of the country's economy slowed down, and the demand for mortgage loans began to decline. In 2011, property prices in Sweden fell by 2.7%, and the average home price in the country was 221,316 euros. In Stockholm and its suburbs, the average property value in 2011 fell by 4.4% to 409,473 euros. For the country as a whole in 2013, experts predict an increase in the value of real estate, albeit insignificant. Offer Stockholm, Gothenburg and Malm - the largest city of Sweden. These are port cities, so the main trade flows through them. Stockholm has perhaps the highest housing prices in comparison to other regions of Sweden, in Malm prices are slightly lower. In these cities, the cost of an apartment varies depending on the area, area and year of construction of the building. The most expensive housing is located in the central regions, where the cost for a two-bedroom apartment starts from 170,000 euros, prices for luxury apartments go up to 500,000 euros. In Stockholm, for example, in the Huddinge district, which is located 20-25 minutes by car from the city center, a three-bedroom apartment costs approximately 100,000 euros. Prices for individual houses start from 250,000 and can go up to 1 million euros, depending on the area. More affordable options can be found outside the major cities. In the small town of Vadstena, for example, prices differ significantly - apartments here can be purchased for 30,000 euros, and a separate house will cost about 80,000 euros. Rental rates in Sweden are low as this market is strictly regulated by law. The rental price in large cities, depending on the year the house was built and its location, varies from 200 to 1000 euros per month. HomesOverseas.ru