The Housing Year 2025 Nears the Finish Line, and the Latest Figures from November Show a Market Taking a Break in the Winter Chill. Despite Purchase Prices Retreating Slightly on Paper, the Underlying Trend Shows Strength. At the Same Time, We See a Shift in the Secondhand Market Where the Extreme Rent Levels Are Starting to Level Out. Here's the Analysis of the Situation Right Now.
It has been a year marked by sharp turns, but as we now summarize November, the Swedish housing market seems to be entering a phase of stabilization. According to fresh figures from the SBAB Booli Housing Price Index (HPI), housing prices fell by 0.5 percent in November. This may sound negative at first glance, but the truth is more nuanced than that.
"The Roller Coaster Is Over"
November is historically a weak month for housing prices, and this year's decline is entirely in line with the seasonal pattern. If you remove these seasonal effects, the picture looks different: the underlying trend actually shows an increase of 0.3 percent.
– Housing prices fell back in November as they usually do this time of year. But the underlying trend development looks more positive, notes Robert Boije, chief economist at SBAB, in a comment on the latest figures.
The industry is now breathing a sigh of relief after a volatile year. SkandiaMäklarna describes it as the "roller coaster" finally seeming to be over and that we are moving towards a more predictable market for 2026.
Secondhand Market: Rent Shock Subsides
Parallel to the stabilization of the sales market, we see interesting movements on the rental side. In recent years, the secondhand market has served as a valve for those who have not been able to sell their homes, leading to a record supply of "involuntary landlords." Now we are seeing signs of this changing.
Interest Rate Cuts Dampen Rents The lowered interest rates during the autumn have reduced the cost pressure on condominium owners. This has begun to be reflected in the rent setting on the secondhand market. After a period where secondhand rents skyrocketed in line with interest rate hikes, we are now seeing a clear flattening.
-
For tenants: There is no longer the same aggressive pricing on the secondhand market as a year ago. The supply is still large, but "panic rentals" are decreasing as more people manage to sell their homes.
-
The gap with new production: At the same time, rents for newly produced rental apartments have soared – according to Statistics Sweden (SCB), these increased by as much as 13 percent during the year. This means that the secondhand market for older housing...
Buying Property in Sweden as an Expat: What You Need to Know
For expats looking to settle down in Sweden, buying property can be an attractive option. However, navigating the Swedish housing market requires understanding some key differences compared to other countries.
Getting a Mortgage in Sweden
Securing a mortgage is a crucial first step. Here's what you need to consider:
- Bank Requirements: Swedish banks typically require a personal number (personnummer) for a mortgage application. If you don't have one, some banks may still offer mortgages, but the requirements might be stricter. It's advisable to contact several banks to compare offers.
- Deposit: Be prepared for a significant deposit, usually around 15% of the property's price. This is the kontantinsats.
- Amortization: Swedish mortgages often require amortization, meaning you pay off a portion of the principal each month. Regulations dictate how much you need to amortize based on your loan-to-value ratio.
Example: Let's say you're buying an apartment for 3,000,000 SEK. You'll need a deposit of 450,000 SEK. The remaining 2,550,000 SEK will be your mortgage. The bank will assess your ability to repay this amount based on your income and other debts.
Understanding the Buying Process
The buying process in Sweden usually involves these steps:
- Attend Viewings (Visningar): Browse online portals like Hemnet to find properties and attend viewings. These are often open houses where you can inspect the property.
- Participate in Bidding (Budgivning): If you're interested, participate in the bidding process. Bids are usually submitted via phone or online to the real estate agent.
- Sign the Contract (Köpekontrakt): Once your bid is accepted, you'll sign a preliminary contract. This is a legally binding agreement.
- Secure Financing: Finalize your mortgage and ensure you have the funds for the deposit and other costs.
- Closing Day (Tillträde): On the closing day, you'll pay the remaining amount and receive the keys to your new home.
Important Considerations for Expats
- Swedish Real Estate Agents: Real estate agents in Sweden represent the seller, not the buyer. Consider hiring your own advisor to represent your interests.
- Hidden Fees: Be aware of potential hidden fees, such as association fees (avgift) for apartments and property taxes.
- Home Inspection: It's recommended to have a professional home inspection (besiktning) done before signing the contract to identify any potential issues.
Renting in Sweden: A Guide for Expats
Renting is a common option, especially for newcomers to Sweden. Here's what you need to know about the Swedish rental market.
First-Hand vs. Second-Hand Rentals
- First-Hand (Förstahand): This is a direct rental agreement with the property owner or a housing company. These are typically more regulated and offer greater security.
- Second-Hand (Andrahand): This involves renting from someone who already has a first-hand contract. The rules are different, and it's crucial to understand your rights.
Swedish Context: Förstahand contracts are highly sought after and can be difficult to obtain, especially in major cities. Waiting lists are common. Andrahand rentals are more readily available but come with higher risks.
Understanding Swedish Rental Laws
Swedish rental laws are designed to protect tenants. Key aspects include:
- Rent Control: First-hand rentals are subject to rent control, meaning the landlord can only increase the rent based on pre-determined factors.
- Security of Tenure: Tenants with first-hand contracts have strong protection against eviction.
- Notice Period: Landlords must provide a notice period before terminating a lease.
Practical Tip: Familiarize yourself with the Swedish Tenancy Act (Hyreslagen) to understand your rights and obligations as a tenant.
Finding Rental Accommodation
- Online Portals: Websites like Blocket Bostad, Samtrygg, and Qasa are popular platforms for finding rental apartments.
- Housing Companies: Contact local housing companies (bostadsbolag) directly to inquire about available apartments.
- Facebook Groups: Join Facebook groups for expats in Sweden, where people often post about available rentals.
Negotiating Rent and Lease Terms
- Second-Hand Rentals: Rent for second-hand rentals is often negotiable. Research comparable properties to ensure you're paying a fair price.
- Lease Agreement: Always have a written lease agreement that clearly outlines the rent, duration of the lease, and other important terms.
FAQ: Housing in Sweden for Expats
What is a bostadsrätt?
A bostadsrätt is a form of housing ownership unique to Sweden. It's the right to live in an apartment within a housing cooperative (bostadsrättsförening). You don't own the apartment outright, but you own a share of the cooperative, which gives you the right to live there.
How do I get a personnummer?
A personnummer (personal number) is a unique identification number assigned to residents in Sweden. You typically need to be registered as a resident to obtain one. Contact the Swedish Tax Agency (Skatteverket) for more information.
What is the avgift?
The avgift is a monthly fee paid by bostadsrätt owners to the housing cooperative. It covers the building's operating costs, such as maintenance, heating, and insurance.
Where can I find information in English about Swedish housing laws?
The Swedish government provides some information in English on its website. Additionally, several websites and organizations cater to expats in Sweden and offer guidance on housing-related issues.
Is it better to rent or buy in Sweden?
The decision to rent or buy depends on your individual circumstances. Buying property can be a good long-term investment, but it requires a significant upfront investment. Renting offers more flexibility, but you don't build equity.
Conclusion: Navigating the Swedish Housing Market
The Swedish housing market can seem complex, especially for newcomers. By understanding the key concepts, laws, and processes, you can successfully find a place to call home in Sweden. Whether you choose to rent or buy, thorough research and preparation are essential for a smooth transition.
