What do foreign investors need to know about real estate in Sweden?

General information about Sweden

Sweden is the largest country on the Scandinavian Peninsula and participates in the European Union. The main monetary unit here is the Swedish krona.

Stockholm is the capital

The capital of the country is Stockholm, sometimes referred to as the “capital of Scandinavia”. The city serves as a significant economic, political and cultural center of the country and is located on fourteen islands in the Baltic Sea.

Population and economy

The population of Sweden is approximately 9.4 million, of which about 2.1 million live in and around Stockholm. It is important to note that Stockholm generates almost 30% of the country's total economic turnover.

Climate conditions

Climatic conditions in Sweden, largely due to the influence of the Gulf Stream, are quite mild for northern regions. Winter temperatures rarely fall below -15°C, while summer temperatures average around +17°C.

The country consistently ranks high in international rankings that assess the level of economic development, quality of life and medical and social services. These indicators remain at a high level even in difficult economic times, which is reflected in stable residential real estate prices.

Buying real estate

In Sweden there are no restrictions on the purchase of real estate for foreigners. Since May 2009, a law has been passed that allows foreign nationals to purchase apartments for personal residence, unlike the previous practice where permission from a housing cooperative was required.

• Previously, non-residents could only purchase private homes.
• Opening a business in the country also provides an opportunity to obtain a residence permit.
• As a rule, apartments are purchased both for permanent residence and for educational purposes.

Real estate rentals

Despite the high demand for rental housing in Sweden, investment in real estate for rental purposes does not have a significant return. Annual returns in this segment usually do not exceed 5% and taxes for non-residents are approximately 30%.

Air traffic with Russia

For the convenience of travelers, there are direct flights between Russia and Sweden from such carriers as Aeroflot, Rossiya, SAS and Yamal. “Aeroflot and SAS operate flights from Moscow and St. Petersburg to Stockholm, while Rossiya operates flights only from St. Petersburg.

• Approximate flight time from Moscow to Stockholm is about two hours.
• From St. Petersburg - approximately one and a half hours.
• Direct air service between Moscow and Gothenburg is organized exclusively by Yamal Airlines.

Real estate market

The real estate market in Sweden is relatively new, as it opened to foreign investors only in the early 90s. Russian investors should take into account that the Swedish housing market is subject to strict regulation by the government, which is aimed at preventing it from overheating.

Therefore.real estate speculationinexpedient here, which in turn ensures the stability and predictability of the market.

Russian investors' interest in Sweden

There is a growing interest among Russian investors in Sweden, especially in major cities such as Stockholm, Gothenburg and Malmö. More and more clients from Russia are looking to invest in commercial real estate in these regions, covering hospitality, retail and other areas.

It is important to note thatstrict environmental standardsin the country significantly hamper new construction, resulting in thevalue of existing facilitiesis only increasing. Increased domestic demand for housing is also an important factor contributing to the growth of real estate prices.

Real estate price growth through 2008

Throughout the 1990s and up until the financial crisis of 2008, Sweden experienced a steady increase in house prices, with an average of about6-7% annually.

Conclusion

Concluding our review of real estate in Sweden, it is impossible not to mention the uniqueness of this country, which successfully combines tradition and modernity. Sweden not only attracts attention due to its stable economy and high standard of living, but also offers a variety of opportunities for real estate investment. Every year interest in the Swedish market is growing, especially among foreign buyers, including Russians, who are increasingly seeking to buy apartments in the capital or commercial real estate in major cities.

It is undeniable that Sweden offers favorable conditions for living and doing business. The adopted changes in legislation, allowing foreign citizens to purchase real estate without unnecessary bureaucratic delays, have opened new horizons for investors. Thus, buying real estate becomes not only a promising investment, but also an opportunity to provide yourself and your family a comfortable life in a country with a high quality of life.

The advantages of living in Sweden:

• Climate:temperate due to the gulf stream.
• Economic Stability:high growth rates even in the context of the global crisis.
• Legal Defense:transparent terms of real estate purchase.
• Quality of life:high level of health care and education.

The climate, economic stability and general cultural atmosphere make Sweden attractive for long-term investments. Despite certain risks associated with changes in the economy, the real estate market in this country, as a rule, shows steady growth. This is evidence that even in conditions of global instability, Swedish real estate remains a reliable asset.

If you are considering investing or living permanently in Europe, Sweden can be an excellent choice due to its open real estate market and attractive living conditions. This unique corner of Scandinavia is happy to open its doors to those looking for quality, comfort and stability.

Conclusion:

In conclusion, Sweden is not just a country worth visiting, but a place that can be home to those who value high standards of living and opportunities for development.