• Sweden edition
 
Swedish apartment construction takes off
Hammarby Sjöstad in Stockholm sprung up in the housing boom

Swedish apartment construction takes off

Published: 13 Oct 2010 15:37 GMT+02:00
Updated: 13 Oct 2010 15:37 GMT+02:00

“New production of tenant-owner apartments is back at the high-levels from 2005 to 2007, in particular in greater Gothenburg and greater Malmö,” said Hans-Åke Palmgren of the National Board of Housing, Building and Planning (Boverket) to the Dagens Industri (DI) financial daily.

Increased optimism about the economy combined with a current housing shortage in Sweden’s major cities are two contributing factors to the housing board’s decision.

The agency’s new forecast is set to be presented on Thursday.

The Swedish Construction Federation (Sveriges Byggindustrier – BI) also expects a boost in the building sector. According to a recent forecast by the organisation, the sector is set to expand due to a steep increase in renovation investments.

The Construction Federation figures reveal a roughly 40 percent increase in the number of apartments under construction compared to last year.

At the same time, the construction of offices and other facilities has slowed or remains stagnant.

The current recovery underway in the Swedish economy is in the process of petering out, according to the federation.

Overall construction investment is expected to increase 3 percent in 2010 and 5 percent in 2011, which will lead to an increase in employment in the construction sector of up to 20,000 by the start of 2011.

However, the head of the Byggnads construction workers union, Hans Tilly, doesn’t believe the signs of a full recovery in the construction sector are all that clear, at least not across the entire country.

“We haven’t really noticed all that much other than there are lots of positive reports of various sorts. But even if the residential sector recovers quickly, there was basically a complete stop in the autumn of 2008. And recovering from a low point like that takes time,” he told the TT news agency.

During the financial crisis, the construction of tenant-owner apartments (bostadsrätter) dropped, while the building of rental units continued.

But now tenant-owner apartment construction has taken off again, according to Johan Deremar, an economist with the Construction Federation.

“Building companies think it’s hard to make money on rental apartments, the figures often don’t add up. It’s much more attractive for companies to build tenant-owner apartments,” Deremar told TT.

At the same time, construction firms believe they will need plenty of new recruits when the economy turns upward, in part because of a wave of retirements expected to take place in the coming years.

But the high number of people enrolled in construction training programmes is likely to protect against any labour shortages for firms.

“When it comes to tradesmen, we don’t see any shortage. On the other hand, there may be problems with foremen. Companies have a difficult time finding people who can lead work crews,” said Deremar.

TT/The Local (news@thelocal.se)

Don't miss...X
Left Right

Your comments about this article

16:16 October 13, 2010 by Nemesis
Ireland has a lot of foremen looking for jobs. Hire them.

Also there is a lot of unemployed Irish construction workers who need jobs. Hire them as well.
16:28 October 13, 2010 by Swedesmith
About damn time.
16:41 October 13, 2010 by tigger007
look most or all of them are for buying not renting! you can't ask a person between the ages of 19 to 23 years of age to buy an apartment! the average prices in göteborg for a 40 to 45sqm is about 1,000,000 to 1.300,000 krs(good areas).if i'm right they say next year they want people in sweden to put down 20% of the asking price.they have this reasoning that if we build more people will buy more and the people in rented apartments will move out their rented flats! WRONG! swedes like their controlled rent and so do i. if they are building 5 housing complexes atleast 2 of them should be for renting.
22:48 October 13, 2010 by Brucelee@stockholm.sweden
what the hack is "tenant-owner apartments"?,

As I know nowadays strange Swedish property system, you paid 1 or 2 million for an apartment but theoretically you are still renting it, the bloody HSB and mxxxxxxxfxxxxx bostarättsforening owns your apartment, is it Fxxxxxxxx ironic?
00:27 October 14, 2010 by rumcajs
I'm with tigger007. In most of european countries where I've lived one pays more than the half of the salary for a s**t hole. In Sweden u still manage to pay a third and to be honest .......... I REALLY LIKE IT THAT WAY.
07:47 October 14, 2010 by hilt_m
I seem to remember reading that they had changed the laws for newly built apartments.
09:15 October 14, 2010 by Nemesis
Regarding HSB apartments.

I am saving so that I can sell my HSB apartment and purchase a house.

HSB can be good sometimes, but other times they can be a nightmare. If you have a bad association living in a bostad can be a nightmare.

Regarding Swedes.

They like the whole Bostad-HSB thing for a reason. Once they get an apartment, they sublet it for way over a realistic market value, usually to immigrants who the local bostad rental company will not touch with a bargepole.

HSB used to be a good thing for helping the poorest onto the property ladder. Now it is a profit making machine designed to keep people poor.
17:11 October 15, 2010 by Danish Omer Zuberi
Why these bland block like appartments, why not castels, that match with the Eurpean architecture, not palaces, castels with inhouse services like restaurant, laundry, recreation, gym, library, and rooms. Sounds funny but maybe a professional could put the idea in better words.
Today's headlines
Swedes insist EU prioritize environment

Swedes insist EU prioritize environment

An EU public opinion poll released on Friday revealed that Sweden is the only nation which thinks the environment should be a top priority for the union. READ  

Police turn blind eye to Swedish 'slave trade'
File photo: TT

Police turn blind eye to Swedish 'slave trade'

Police in Gothenburg have confirmed that sex trafficking in the city has developed into a full-blown slave trade - but that they lack the resources to do anything about it. READ  

Pirate Bay inmate claims religious persecution
Photo: TT/The Missionary Church of Kopimism

Pirate Bay inmate claims religious persecution

Peter Sunde has complained that his religious rights have been impinged after he was refused permission to meet a representative of a church inspired by the keyboard shortcuts for cut and paste. READ  

Stockholm 'bomb man' jailed and deported
Police at the scene of the threat in June. Photo: Bertil Ericson/TT

Stockholm 'bomb man' jailed and deported

The 43-year-old man who threatened Stockholm's Gamla Stan with a bomb in June was sentenced on Friday to two years in jail, followed by deportation. READ  

Swedish police: 'We're sweaty all the time'
Swedish cops are unhappy with the heat. Photo: Håkan Dahlström/Flickr

Swedish police: 'We're sweaty all the time'

Swedish weather agencies say the summer's warmest day is yet to come, but police in the north have decided that they can't take the heat - and filed a report about the own stifling police station. READ  

SAS resumes flights from Stockholm to Tel Aviv
File photo: Johan Nilsson/TT

SAS resumes flights from Stockholm to Tel Aviv

SAS Scandinavian Airlines has resumed flights from Stockholm to Tel Aviv after the airline completed a 'thorough security analysis' of the situation in Israel. READ  

Swedish man stabs woman and kills himself
A Stockholm police car. File photo: TT

Swedish man stabs woman and kills himself

A man and a woman, reported to be both 45-years-old, were found dead on Thursday in an apartment on Lidingö in Stockholm with police suspecting a murder and suicide. READ  

Police fear arson after Sweden mosque fire
Central Norrköping in eastern Sweden. Photo: Stefan Vilcans

Police fear arson after Sweden mosque fire

Swedish police suspect arson after buildings at a mosque in Norrköping in eastern Sweden burned down in the early hours of Friday morning. READ  

Opinion
'Moving wasn't a choice, Sweden called to me'

'Moving wasn't a choice, Sweden called to me'

Caught in an identity limbo and surrounded by often apathetic "love refugees", The Local's resident Swedophile Solveig Rundquist wonders if she's the only expat who moved to Sweden for the culture alone. READ  

Swedish inmates to receive digital tablets
Photo: Hasse Holmberg/TT

Swedish inmates to receive digital tablets

Sweden's Prison and Probation Services are beginning a project in which suspected criminals will be given surf tablets to look at evidence against them. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
Top ten Swedish taboos
Society
Seven-year-old Swede cycles to Berlin
Politics
'Gaza conflict needs help, not empty rhetoric'
Society
Swedes voted 'most beautiful' in the Nordics
Business & Money
Sweden demands EU clarity on Bitcoin tax
Blog updates

24 July

Sharing our Pride: Celebrating Love & the LGBT Community! (Stockholm in my American Heart) »

"It’s mid- July in Stockholm, and with much of the city on vacation, things can seem a little quiet – the streets, the bus, and the grocery store. One thing that has not paused for a summer break, though, is preparation for Stockholm’s Pride Festival, which will take place from July 28 to August 2...." READ »

 

22 July

Det (The Swedish Teacher) »

"Hej! “Det” is a personal pronoun that can be used in many ways, and it might me confusing if you always translate “det” to English “it”. In this article I will do my best to guide you to how to use “det”. Det replacing a word, a phrase or a clause Let us begin with the less confusing..." READ »

 
 
 
National
Swedish organic sales enjoy 'amazing' growth
Photo: Johan Nilsson/TT
Society
What's On in Sweden
Gallery
People-watching July 23
National
Swedish cops elect not to shoot 'angry elks'
Business & Money
New alcohol retail rules threaten micro-breweries
Gallery
People-watching Båstad
Business & Money
Sweden falls to third in global innovation index
Society
Swedish ornithologists keep webcam watch
Photo: Andreas Nordström/Image Bank Sweden
Gallery
Top ten Swedish beach hot spots
Tech
Swedish Wiki vet sets new content record
Photo: Fastighetsbyrån
Lifestyle
In Pictures: The Local's Property of the Week
Photo: Finest.se
Gallery
People-watching July 15-16
Photo: Ola Ericson/Image Bank Sweden
Society
What's On in Sweden
Photo: Lisa Mikulski
National
Hope springs eternal for expat pet shop owner
Gallery
Princess Estelle steals limelight at mum's birthday
National
Swedes risk infants' lives by covering up prams
National
Swede runs for office just using Bitcoin funds
Gallery
People-watching July 11-13
Sponsored Article
Introducing... Your finances in Stockholm
Sponsored Article
Introducing... Housing in Stockholm
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Germany

More news from Germany at thelocal.de

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

726
jobs available
Swedish Down Town Consulting & Productions
Swedish Down Town Consulting & Productions is an innovative business company which provides valuable assistance with the Swedish Authorities, Swedish language practice and general communications. Call 073-100 47 81 or visit:
www.swedishdowntown.com
If you want to drink, that’s your business.
If you want to stop, we can help.

Learn more about English-language Alcoholics Anonymous in Sweden. No dues. No fees. Confidentiality assured.
AA-EUROPE.ORG/SWEDEN
PSD Media
PSD Media is marketing company that offers innovative solutions for online retailers. We provide modern solutions that help increase traffic and raise conversion. Visit our site at:
http://psdmedia.se