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Rental Yields
 
Sep 09, 2005

Yields are low to moderate

Last Updated: Sep 9, 2005
STOCKHOLM - Centre COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
50 sq. m. 180,000 600 4.00% 3,600 12.00
80 sq. m. 250,000 1,400 6.72% 3,125 17.50
120 sq. m. 380,000 1,900 6.00% 3,167 15.80
200 sq. m. 900,000 2,800 3.73% 4,500 14.00
STOCKHOLM - Suburbs
70 sq. m. 120,000 350 3.50% 1,714 5.00
120 sq. m. 200,000 500 3.00% 1,667 4.20
180 sq. m. 950,000 4,000 5.05% 5,278 22.20
500 sq. m. 1,500,000 5,500 4.40% 3,000 22.00
GOTHEBORG
40 sq. m. 75,000 350 5.60% 1,875 8.80
70 sq. m. 95,000 550 6.95% 1,357 7.90
100 sq. m. 180,000 750 5.00% 1,800 7.50
Source: Global Property Guide

Swedish property yields are low to moderate. Mid-sized central Stockholm apartments (80 to 120 sq. m.) have the most generous gross yields, at 6 to 7%. Other sized properties are likely to have lower yields, at around 3 to 4%. Properties in suburban Stockholm have relatively lower yields, at 3% to 5%, while apartments in the centre of the second-largest city of Göteborg can yield around 5% to 7%.

Because rents are tied to the age of the property, the higher yields in the city-centre reflect partly the newer housing stock in those areas.






Comments

#1 ROLY TAVERNOR | April 04, 2008

It seems to me that rents are controlled by authorities rather than the free market. 10 year waiting lists for prime appartments why nor just increase the rents? I would be interested in any commentsRegards Roly

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