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Sweden: House Prices, Rents, and Rental Yields

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Last Updated: 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.

 

Your Comments

posted by Roly Tavernor | 2008-04-04

Shropshire

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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