Office
New office completions surged in H2 2024, with 76,000 sq m added across Sweden’s largest cities, a 146% increase from last year. Gothenburg led with 58,000 sq m, while Stockholm and Malmö saw lower activity. Vacancy rates have risen slightly, reaching 8.0% in Stockholm CBD, 13.0% in Gothenburg, and 7.5% in Malmö. Despite this, prime rents continue to grow, with Stockholm reaching SEK 9,650/sq m, while prime yields declined slightly in Stockholm and Gothenburg.
Office - Stockholm
Office completions in Stockholm slowed in H2 2024, with just 3,000 sq m delivered and none in Q4. Vacancy rates increased to 16.5% across Greater Stockholm, with decentralised areas seeing the largest rise. Prime rents in the CBD rose to SEK 9,650/sq m, while rents in the City Centre and decentralised areas remained stable. Prime yields decreased slightly to 3.95% in the CBD and 4.35% in the City Centre, while decentralised yields stayed at 4.65%.
Logistics
The residential sector led investment activity in 2024, with SEK 39.1 billion transacted, an 84% increase from 2023. High-quality developments in Greater Stockholm remain attractive to investors. Prime yields declined slightly in Q4, now at 4.10% in Stockholm, 4.60% in Gothenburg, and 4.70% in Malmö. New construction is increasing, supported by lower inflation, reduced interest rates, and improved liquidity in the investment market.
Residential
The residential sector led investment activity in 2024, with SEK 39.1 billion transacted, an 84% increase from 2023. High-quality developments in Greater Stockholm remain attractive to investors. Prime yields declined slightly in Q4, now at 4.10% in Stockholm, 4.60% in Gothenburg, and 4.70% in Malmö. New construction is increasing, supported by lower inflation, reduced interest rates, and improved liquidity in the investment market.
Retail
The retail market has seen some recovery, particularly in larger cities, with prime retail locations seeing slight growth in both rents and investor interest. However, the sector still faces challenges, especially for non-prime locations, where vacancy rates have remained high. Retailers are increasingly focusing on omnichannel strategies, blending physical and digital sales to drive growth. Despite the overall challenging environment, high-quality retail spaces continue to attract attention from both tenants and investors.
Economic & Investment Overview
Sweden's economic recovery is expected to begin in Q2 2025, with ongoing challenges and cautious household spending. Unemployment is projected at 7.4% throughout 2025, and inflation remains below 2%, with potential Riksbank rate cuts to stimulate investments. The real estate market had a strong Q4, with SEK 60.1 billion in transactions, more than double the previous year. Full-year volumes totaled SEK 135.6 billion, a 48% increase from 2023, dominated by domestic investors. The residential sector led investments (28%), followed by offices (26%), with stable logistics yields at 5.00%.
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