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Investment

Sweden is a member of the EU but they have not as yet adopted the Euro currency. This has not affected the strength of the Swedish economy and the country has a historically strong GDP per capita and HDI (Human Development Index) rating, which leads to the fact that the standard of living in Sweden is amongst the highest of all countries in the world. This yinevitably means that the cost of living is above average, but unusually the cost of property is low in comparision. You could reasonably expect to purchase a small country cottage for €40,000 or a villa from €100,000. The reason that property prices are at the lower end could be explained by the fact that Swedes will typically rent a property rather than buy.

If you are considering buying a Swedish property, the prices will be highest for areas in or close to the major Swedish cites; Stockholm, Gothenborg and Malmo. Indeed, 20% of the Swedish population live in Stockholm or the immediate surrounding areas on the Baltic Sea. 

The smart investors money is focusing on the Malmo area of Sweden. This is in large part due to the recent construction of a 16 kilometre tunnel and bridge connecting it with Copenhagen in Denmark. Prices of property in Copenhagen are substantially higher than those in Malmo, so many workers in Copenhagen have taken the option to buy in Malmo and commute to Copenhagen. 

Due to the Swedish preference to rent properties in the main cities rather than purchase outright, the rental market is over saturated and rent pricing has been kept at an artificial low, therefore, at this time the buy to let option is less appealing. Evidence suggests that more property is being bought by private investors targeting the market so rental prices could well change in the near future.

Capital growth in 2004 was 7.6% and property price increases were 81% between the years of 1997- 2004 eclipsing the property growth rates of many nations with developed overseas property markets such as France and Italy. Analysts believe that property prices have yet to peak in Sweden and expect the growth to continue.

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