The price boom in Sweden has officially come at term . After years of perpetual rise, it finally seems that the country is experiencing a period of equilibrium.
The previous stricter requirements have not allowed investors to build up their confidence in real estate. This is also due to the economic crisis which, only a few months ago, can be said to have been eliminated.
The national price index began to decline towards the end of 2018. It is said to be 33 percentage points lower than the 2017 annual increase of 7.58 %. A real reversal of the trend, which seems only to facilitate investors but also owners. The market is therefore regenerating. But how the price boom in Sweden has officially come at term?
Let’s analyse it all at regional level.
We try to understand how prices are moving across the country, with exceptions and variables.
The highest index in terms of price variation was recorded in Stockholm, with a decrease of 7% compared to the increase of 5% in 2018.
In Malmo, prices increased, but only by 0.6 %, marking a slowdown on an annual growth rate of 10 %. On a quarterly basis, on the other hand, house prices fell by 0.8 %.
How do supply and demand behave? There is also a decrease in supply and demand. According to the statistics, the total number of properties sold decreased by almost 5 %.
In 2018, new buildings also fell by 20 %, according to Swedish statistics.
Yields in the Swedish real estate market, however, are moderate. We do not have precise figures so that we can create a document that is in keeping with the current situation.
Smaller houses are the ones that make the most, because they are able to meet and satisfy the needs of potential buyers.
But while Stockholm is still first in the rankings in this case, other realities like Gottenburg are able to produce results that do not exceed 7%.
Prices generally range from 6,000 to 7,500 euros per square meter.
Despite this, transaction costs for residential properties are also quite low.
Inflation in Sweden is still very low, so much so that it falls against the European currency, losing almost 10 percentage points. (SEK 10.502 = 1 EUR )
Although the government is trying to find a solution to this stalemate, it does not seem to have been able to bring the much hoped-for benefits.
We can therefore say that, in general, the situation is positive for potential buyers, but generally critical for the Swedish economy.
As far as the forecasts are concerned, we do not have any reliable data here either. It is to be hoped that the Swedish economy can emerge from this deadlock without inflating real estate prices.
Read also: Property for sale in Sweden
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