Sweden, one of the fastest-growing capitals in Europe

Lee M Cashell
Lee M Cashell
2 min read

Sweden represents a thriving welfare state with extensive social support for its people, nestled in Scandinavia, where its economy is currently outperforming the rest of Europe. The country has long been considered a very favorable market to invest, offering a mostly corruption-free climate, highly skilled labor force, and access to the newest technologies.

The Nordic monarchy has historically been quick to respond and integrate to the globalized business sphere, housing one of the most internationally integrated economies in the world, with Stockholm operating as the center of most of these activities.

5d4834461d02e

Highly dependent on exports, Sweden has widely carried out pro-trade policies, large flows of capital, and satisfactory levels of foreign investment, all of which add to the country’s global competitiveness.

The investment climate is characterized by other favorable aspects like low corporate tax rates, exceptional infrastructure, and easy access to capital. Now, with interest rates at historical lows and with securing financing posing a painless task, many are surging through the country, and especially the capital city with investments.

Still, with strict building and labor regulations, high cost of labor and construction, low to moderate yields, and soaring individual tax rates, Sweden isn’t a market without its faults. A big portion of the rents are capped, which flattens returns on investment. This is a long-lived tradition of a country of social democracy and collective risk sharing, where the capitalist mentality is unfamiliar. The state provides cradle-to-grave support, which includes access to affordable rents.

raphael-andres-3cwvFD-YPtk-unsplash

Stockholm is currently the fastest-growing capital in Europe, due to a thriving tech and startup field, record levels of immigration, and a sky high birth rate. This raises demand for property development in all sectors, posing opportunities for office buildings and residential developments, with strong retail, and industrial sectors, too.

However, space in the most sought-after, central locations is very scarce, and new developments in more remote settings come with half the sales and rental rates. In the residential sector, housing prices are soaring to historical highs, fueling what many fear to be a housing bubble. Additionally, apartments in central Stockholm are so hard to come by that some are waitlisted for two decades before securing an apartment. Thus, there has been a thriving black market, where bribes are exchanged for contracts. Still, this poses opportunities, for there is definitely towering demand for new developments.

 

Sweden is a fast-developing, technologically savvy nation, with government regulation and support extended in all walks of life.

 

The currently booming economy, the high salaries and purchasing power of the people, combined with high demand for properties in most all sectors, create a framework for lucrative opportunities for those who are willing to learn the market.

We believe these opportunities are most likely to be realized in Stockholm, so we at Propeterra chose to study the capital and seek out information that is most relevant for potential investors. 

LEAVE A COMMENT
Recent Articles
Subscribe


Sign up to receive the Propeterra's newsletter and exclusive property news and updates. You can unsubscribe at any time by clicking on the unsubscribe links in our emails.

 

 

posts by tag

See all

Market Cover_Emerging Markets-1

 

Market Cover_Frontier Markets-1

 

Market Cover_Special Situations-1-1

 

Market Cover_Developed Markets-1

 

Recent Articles

2 minutes read

It’s Ski Season! Four Resorts to Invest In Now

The swish of skis, the powder on the slopes and the crisp mountain air… With Covid restrictions easing, many holidaymakers’ thoughts are turning to travel - and with the winter sports season in full flow, what better time to look at the resorts that offer the most bang for your investment bucks? Read on for Propeterra’s rundown of our favourite ski destinations - including some you’d never have expected!

Niseko, Japan

Japan might not seem like an obvious skiing destination, but the snow at Niseko is hard to beat. Located in the northern Japanese island of Hokkaido, the annual snowfall is a staggering 15 metres - so unlike some less fortunate resorts in warming parts of Europe, your good skiing is practically guaranteed. Niseko is also renowned for its beautiful scenery and luxury accommodations - and with New Chitose International Airport a short two hour drive away, as well as the Hokkaido Shinkansen connection coming in 2030, it’s never been easier to travel there.

Prime investment opportunities available now include the Pavilions Resort Villas and the Ginto Residences - and for more information on the area, Propeterra’s Niseko Report is available for download now.

3 minutes read

Affordable Housing - the ADB and Lessons from the UK

The Asian Development Bank (ADB) recently released a briefing paper attempting to
learn lessons from the UK as to successes and failures of affordable housing policy. It is
justifiable to critique the UK’s faltering policy of delivery over a number of decades, but
this is precisely why it is a fruitful area of enquiry from analysts considering other parts
of the world. The UK has benefitted from significant resources, and policymakers have
been under considerable pressure from the electorate to ensure adequate housing across tenures. This is why the Chief of the Urban Sector Group at the ADB, Manoj Sharma, saw fit to commission this work, and report on its conclusions.

3 minutes read

Back to desks and back to the city!