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PROPERTY

These are Sweden’s most expensive rental apartments

Where is the most expensive rental apartment in Sweden? Perhaps surprisingly, it's not in Stockholm. Here's a look at the ten most expensive rentals from 2019.

Published: 27 February 2020 15:18 CET
Updated: 1 March 2020 09:31 CET
These are Sweden's most expensive rental apartments
Gothenburg is home to the most expensive rental apartments in Sweden, according to data from 2019. Photo: Per Pixel Petersson/Imagebank.sweden.se

The most expensive home rented out in Sweden in 2019, at 32,160 kronor ($3,325) per month, was a seven-room apartment in central Gothenburg, according to property magazine Hem&Hyra, run by the tenant owners' union Hyresgästföreningen. 

The newly renovated apartment at Kungsportsavenyen 37 was almost 6,000 kronor more expensive than the second rental on the list, which is located in the same building. The building was built in 1897 and is situated along Gothenburg's iconic boulevard, often simply called Avenyn (The Avenue). 

The top ten priciest rentals, according to Hem&Hyra's analysis of 2019 data from housing associations and municipal companies in Sweden's five largest municipalities, were found in the most affluent areas of Sweden's three major cities, Stockholm, Gothenburg and Malmö.

But there were also very expensive apartments on the rental market elsewhere.

Last year a five-room apartment in central Uppsala went on the market for 19,817 kronor a month. In Linköping another apartment brought in close to 19,000 kronor each month. 

Top 10 most expensive rental apartments in Sweden

  1. Kungsportsavenyen 37, Gothenburg. 7 room. Rent: 32,160 kronor
  2. Kungsportsavenyen 37, Gothenburg. 5 room. Rent: 26,783 kronor
  3. Vasagatan, Gothenburg. 6 room. Rent: 25,773 kronor
  4. Marietorps allé 3A, Malmö. 7 room. Rent: 25,759 kronor
  5. Husarviksgatan 18, Stockholm. 6 room. Rent: 25,549 kronor
  6. St Paulsgatan 10, Stockholm. 7 room. Rent: 25,059 kronor
  7. Götabergsgatan, Gothenburg. 6 room. Rent: 25,000 kronor
  8. Köpenhamnsvägen 95, Malmö. 6 room. Rent: 23,426 kronor
  9. Valhallavägen 96, Stockholm. 7 room. Rent: 22,645 kronor
  10. Köpenhamnsvägen 93A, Malmö. 5 room. Rent: 22,635 kronor

Source: Hem&Hyra Data: Statistics from the five largest municipalities in Sweden. Not all private landlords are connected which means that more expensive rental apartments may have been mediated outside of the list.

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How much is 'normal'?

In 2019 the average monthly rent in Sweden for a three-room apartment was 7,147 kronor ($739), according to Statistics Sweden.

But there are large variations depending on where you live.

In a municipality with fewer than 75,000 inhabitants, a family pays on average 1,600 kronor less for a three-room apartment than a household in Stockholm does.

And these statistics only take into account so called 'first-hand' contracts, which are subject to rent controls. These contracts in Sweden are in most cases given on a first-come, first-serve basis which means that you join a queue and are given priority based on your position in that queue.

In larger cities it's often impossible to find a first-hand contract without having first spent years, or even a decade or more, in the queue. In larger cities it can take many years in this queue to be eligible for a first-hand contract, so sub-letting or 'second-hand renting' is common. 

Renting in Sweden

Recent figures show a slow increase in available housing, but the shortage is still felt nationwide, and is especially problematic in the larger cities. The National Board of Housing, Building and Planning (Boverket) reports that 240 of Sweden's 290 municipalities has a housing shortage.

Municipal or state-regulated rental companies must abide by restrictions on how much they can charge in rent, based on aspects such as the number of rooms, quality of the apartment, location and proximity to services among others.

The Swedish Tenants Association negotiates rent for tenants who want collective bargaining, and in practice they negotiate levels of rent for 90 percent of Swedish rental apartments, which equates to over three million tenants.

A stated goal in their negotiations is that “rent should not exceed 25 percent of an average salary after taxes”. Based on the 2018 average salary of 34,600 kronor before tax each month, that would equate to a monthly rent of roughly 6690 kronor per person. 

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PROPERTY

Should you buy a home in Sweden this summer?

Considering the fickle trends in the Swedish housing market, prospective homebuyers might find themselves at a crossroads this summer.

Published: 4 July 2024 14:41 CEST
Updated: 13 July 2024 06:27 CEST
Should you buy a home in Sweden this summer?

After a period of falling prices driven by increased interest rates, the Swedish housing market is seeing a rebound, particularly in the biggest cities.

However, it’s also taking longer to finalise home sales.

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Recent data from Swedish property listings site Hemnet indicates that while home sales – and housing prices – are on the rise, the time to complete transactions has notably increased.

For instance, the average sale time for an apartment in Sweden increased to 27 days in the first half of the year, up from 22 days during the same period last year. Similarly, houses now take an average of 31 days to sell, compared to 30 days previously.

The slowest market is in the Gävleborg region, where it takes an average of 44 days to sell a home. The fastest transactions occur in Stockholm, with apartments selling in just 16 days and detached homes in 23 days.

This variation in market activity across the country calls for a deeper look into where the best opportunities might lie for homebuyers this summer.

Renewed market confidence in Sweden’s biggest cities

The confidence in the Swedish property market is on its way up in Stockholm, Gothenburg, and Malmö, Erik Holmberg, a market analyst at Hemnet, told The Local.

“I would say that we have seen a weaker market in the last couple of years, almost everywhere in the country, since the Swedish central bank started to increase the interest policy rate, which affected the market a lot,” he said.

“But in the last half of the year or rather in the last year, the confidence has come back in bigger cities – in Stockholm, Gothenburg, Malmö… When we look at price developments last year, in three of Sweden’s biggest cities, we see prices increasing again.”

However, the analyst warned that the opposite is currently true in other areas of the country, which have seen a continued decrease in market activity and flatter developments in the same time interval.

A new trend emerging in Stockholm?

As Hemnet’s analyst explained, in Sweden, housing market trends usually start in Stockholm, when the market begins to change, causing a ripple effect.

“And that’s what we have seen. Now, market activity and prices are increasing again in the bigger cities. Usually, when the market changes, other areas in the country follow, and that could be the case now,” said Holmberg.

“When the rates and inflation situation become clearer, other parts of the country might follow the market in the big cities. Our main scenario is that we will see this spread,” he said, adding that prices in Stockholm have picked up quite fast in the last year but that the demand is still affected by the high interest rates.

“I wouldn’t be surprised if we saw swift price developments in some areas with the highest demand, such as city centres.”

The effect on the rental market

Another aspect to consider is the rental market, which could see significant changes in the short to mid-term.

Holmberg pointed out that properties which fail to sell might enter the rental market.

“What we’ve seen is that it’s harder to sell properties today, so, probably, more people who own homes and can’t sell them will put these unsold homes on the market for a while. This could affect the supply of apartments for rent and, in turn, prices,” the analyst said.

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What different types of homebuyers should know

For buyers, the current market presents a mixed bag.

“In Sweden, we often talk of having a seller’s or buyer’s market. Today, it’s good for buyers that they have a lot to choose from; there’s a record-high supply almost everywhere in the country. That means it’s easy to find something,” said Holmberg.

However, he also cautioned that the slow market makes agreeing on terms with sellers challenging, with sales times at record highs.

“Sales take some time in today’s market, and that’s important to understand for both sellers and buyers, especially for homeowners who are changing homes, meaning they’re both buying and selling something; it’s a tough market for them.

“Today, this group often chooses to sell their home before they buy something new. That makes up a big part of record high sales times; we have people waiting for the right bid before moving from the selling to the buying side…” Holmberg said, noting that the market is different compared to two to three years ago when it was “very hot”.

“So, remember that even if prices grow, it’s still a tough or slow market.”

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On the other hand, first-time buyers might find a silver lining in the form of lower prices compared to a couple of years ago, making it a potentially favourable time to enter the Swedish housing market.

“First-time buyers are in another situation, which may be better because the prices are lower than two years ago, of course, and if you’re just buying something, you don’t need to worry about the selling part,” Holmberg told The Local.

“That’s why this could be a good situation to enter the housing market this summer, but even so, despite supply being really high, it could still be tough because many sellers have put down a listed price but don’t necessarily plan to sell at this price.”

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