All About Housing Types, Buying a Property and Rental Apartments in Sweden

Sweden has a rich array of accommodation options that reflect its varied landscapes, from the coastal archipelago with seaside cottages to mountain ranges with their cozy lodges and hotels. In this article, you can learn all about housing types, buying a property, and rental apartments in Sweden.

Finding housing in Sweden can be a challenge, but with the correct information and strategies, you can increase your chances of finding the perfect home. There are different types of housing, including a rented room, a rented flat in a block of flats, and a house of one’s own.

In 2024, one- and two-dwelling buildings with owner-occupancy were the most common type of housing in Sweden. Nationally, home ownership stands at 64.8%, while 35.2% of Swedes rent. The average functional floor space per person in Sweden is 42 square meters. Rental prices vary widely by region, but in major cities, they range from €20 to €30 per square meter monthly.

Figures from real estate company Investropa show that house prices in 2023  took a dip, with the national index dropping by 6.31%. This was especially noticeable in Greater Stockholm and Greater Malmö, where prices fell by 6.3% and 8.7% respectively. It was a tough time for sellers, but buyers had a bit more room to negotiate.

Fast forward to 2024, and things started to look up. The market began to stabilize, with a modest 2% increase in house prices. This shift suggested that the rapid growth phase was cooling off, making it a more comfortable time for potential buyers. Real estate agencies observed that while more transactions were happening, they were still not at the levels seen in the past, hinting at a more balanced market.

The Swedish government has been busy behind the scenes, working to keep the housing market steady. They’ve been focusing on increasing access to buildable land and encouraging new construction methods. These efforts, along with the Riksbank’s decision to ease interest rates in 2024, have helped create a more balanced environment for buyers and sellers alike.

For those considering buying property in Sweden, this stabilization means more opportunities and potentially better deals. The market isn’t as frantic as it once was, giving buyers a chance to explore their options without feeling rushed.

Regardless of whether you want to buy or rent, it is essential to understand the Swedish housing market and the different types of housing in the country. Everyone in Sweden is entitled to housing. Your right to housing means that you can apply for help to find some form of housing if you have nowhere to stay. Municipalities have a responsibility to ensure that all of their inhabitants have housing.

Key Statistics:

• Homeownership: 64.8% of Swedes own their homes.
• Rental: 35.2% of Swedes rent their homes.
• Average household size: 2.2 people per household.
• Average functional floor space per person: 42 square meters.
• Most common housing type: One- or two-dwelling buildings with owner-occupancy.

There are three main types of housing in Sweden.

1. House: You can choose to live in your own house on its plot of land, or own the home and lease the land it is built on (tomträtt). If you live on your plot, you are responsible for almost everything relating to your house.
2. Apartment in a housing association (bostadsrätt): This means that you buy a percentage of the property itself and own the right to use your apartment within the property. You own the property together with the other residents. Residents in the house own the property and are part of a housing association. The regulations vary from association to association, but you are not allowed to rent out your apartment without permission from the board of the housing association.
3. Rental property (hyresrätt): You pay a monthly rent.

Living in Sweden

Sweden is located in northern Europe, on the eastern side of the Scandinavian peninsula. The geographical area includes Sweden, Denmark, Norway, Iceland, and Finland, which are collectively known as the Nordic countries. Sweden is a large and oblong country, and is divided into three parts from south to north: Götaland in the south, Svealand in the middle, and Norrland in the north. Sweden is also divided into 25 provinces (called landscapes in Swedish), 21 counties, and 290 municipalities.

Additional Insights:

Housing costs and rental prices vary significantly between regions, especially between Stockholm and other areas.

A significant portion of the rental market is publicly owned, managed by municipal housing companies, and accessible to all residents, not just low-income households.

Housing costs have increased across all tenure types (owner-occupied, tenant-owned, and rented) between 2021 and 2024, with owner-occupied and tenant-owned dwellings experiencing larger increases.

• Single-person households:

Single-person households are more common in tenant-owned dwellings than in owner-occupied houses.

Foreigners may buy properties in Sweden

Both Swedish and foreign citizens can buy property in Sweden. There is no requirement to be a Swedish citizen or have a Swedish personal ID number. However, there are specific requirements involved in the actual purchasing process. To buy a property, there must be a written agreement that contains information about the purchase price and includes the signatures of both buyer and seller.

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Related: Moving to Scandinavia: A Step-by-Step Guide
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Buying a property in Sweden

Buying a house or an apartment in a housing association can be an exciting investment, but it requires knowledge and understanding of the Swedish property market. Here are some basic steps to buying property in Sweden.

1. Find your dream property: Start by looking for housing suitable for your needs and budget. You can use property portals, real estate agents, or contact the sellers directly if they are selling privately.
2. Visit the property: When you find an interesting property, you should visit it in person. This gives you the chance to inspect the property and the surrounding area.
3. Finance: You must be clear about how you will finance your purchase. This can involve a bank loan or your own funds.
4. Purchase agreement: When you have found your dream house or apartment, and you are ready to buy, a written purchase agreement is drawn up that describes all terms and conditions.
5. Inspection and investigations: You should order a technical inspection of the property and carry out any necessary investigations to ensure that everything is in order.
6. Transfer documents: Before the transfer of ownership, make sure that all necessary documents are in place, including the property deeds and any mortgage deeds.
7. Transfer: When everything is completed and the purchase agreement has been signed, ownership of the property is transferred.
8. Registration and taxes: Your property must be registered in the Swedish property register, and there may be costs in the form of transfer taxes and stamp duties.
9. House and home insurance: Remember to arrange insurance that covers both the property and the contents.
10. New property: It’s now time to enjoy your new property in Sweden!

If you’re a foreigner, remember that the Swedish property market may differ from that in your home country, so it is a good idea to seek professional advice and investigate the specific laws and regulations that apply to property purchase in Sweden.

About ten million people live in Sweden today. Around four million of these live in and around the country’s three biggest cities: Stockholm, Gothenburg, and Malmö. Stockholm is the capital of Sweden.

Additional tips for buying a home in Sweden.

All About Housing Types, Buying a Property and Rental Apartments in Sweden, compiled by Tor Kjolberg.
Feature image (top) © Properstar