Sweden and the real estate market: new problems on the horizon
Usually when referring to the Nordic countries, in the collective imagination, well-being is the first characteristic element.
Hardly the word ‘’ crisis ’is mentioned, considering that it is a group of particularly active nations and oriented to the perennial virtuous development in every sector.
Yet 2019 does not seem to have confirmed this situation.
Indeed, we can say that with regard to Sweden and especially the real estate market, reality seems to have totally overturned. For several years there has been a lack of housing and house prices have grown exponentially.
Housing policy over the last few years has had significant impacts, especially at international but also local level. Reason for which reforms and plans aimed at safeguarding the territory from an environmental point of view but also to incentivize the signing of purchase and sale contracts have been applied.
The ‘’ The Million Program ‘’ is based precisely on the fastest urbanization process in Sweden. Many new homes were built in the suburbs and were obviously less attractive than those in the center. Reason for which a modernization plan was implemented to encourage investors to purchase properties even in less metropolitan areas.
However, the construction of these new apartments has not been able to maintain a steady pace to the point of withstanding the sudden increase in the demographic rate.
In fact, immigrants are facing many difficulties with regards to finding a property, given that the capital, Stockholm, is one of the fastest growing cities in Europe.
To be able to sign a lease agreement, you must have your Swedish personal identification number.
The average cost for renting an apartment is 6,500 SEK. But the problem is the waiting time for signing a contract, as there are too many citizens wishing to obtain a home but the availability of the offer is strictly limited.
But why hasn't more houses been built in Sweden?
There are many reasons, but the main ones are the following:
• Land prices and construction costs have soared
• State subsidies for construction companies have been reduced
• Land acquisitions and planning approvals take too long and an excessively long process
It can therefore be seen that the housing problems of Sweden were not born yesterday, but are the result of a misgovernment reiterated over time and lack of flexibility combined with high construction costs.
The building boom that hopefully can take off as soon as possible can simply alleviate part of this dramatic situation, but not totally reset it.
It is therefore hoped that through the implementation of new wide-ranging housing and political plans, Sweden can finally regain its balance.
Hardly the word ‘’ crisis ’is mentioned, considering that it is a group of particularly active nations and oriented to the perennial virtuous development in every sector.
Yet 2019 does not seem to have confirmed this situation.
Indeed, we can say that with regard to Sweden and especially the real estate market, reality seems to have totally overturned. For several years there has been a lack of housing and house prices have grown exponentially.
Housing policy over the last few years has had significant impacts, especially at international but also local level. Reason for which reforms and plans aimed at safeguarding the territory from an environmental point of view but also to incentivize the signing of purchase and sale contracts have been applied.
The ‘’ The Million Program ‘’ is based precisely on the fastest urbanization process in Sweden. Many new homes were built in the suburbs and were obviously less attractive than those in the center. Reason for which a modernization plan was implemented to encourage investors to purchase properties even in less metropolitan areas.
However, the construction of these new apartments has not been able to maintain a steady pace to the point of withstanding the sudden increase in the demographic rate.
In fact, immigrants are facing many difficulties with regards to finding a property, given that the capital, Stockholm, is one of the fastest growing cities in Europe.
To be able to sign a lease agreement, you must have your Swedish personal identification number.
The average cost for renting an apartment is 6,500 SEK. But the problem is the waiting time for signing a contract, as there are too many citizens wishing to obtain a home but the availability of the offer is strictly limited.
But why hasn't more houses been built in Sweden?
There are many reasons, but the main ones are the following:
• Land prices and construction costs have soared
• State subsidies for construction companies have been reduced
• Land acquisitions and planning approvals take too long and an excessively long process
It can therefore be seen that the housing problems of Sweden were not born yesterday, but are the result of a misgovernment reiterated over time and lack of flexibility combined with high construction costs.
The building boom that hopefully can take off as soon as possible can simply alleviate part of this dramatic situation, but not totally reset it.
It is therefore hoped that through the implementation of new wide-ranging housing and political plans, Sweden can finally regain its balance.
