• 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)

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
Scotland Decides
Sweden welcomes Scotland's 'No' vote
No supporters celebrate victory in Glasgow. Photo: Matt Dunham/AP/TT.

Sweden welcomes Scotland's 'No' vote

Sweden’s outgoing foreign minister Carl Bildt has welcomed Scottish voters’ decision to reject independence from the UK in Thursday’s referendum. The pound rose against the krona following the result. READ  

Elections 2014
Centre party still won't help Social Democrats

Centre party still won't help Social Democrats

Centre party leader Annie Lööf has reiterated her resistance to joining a Social Democrat-led government under Stefan Löfven, a stance now being questioned by a former leader of her party. READ  

National
'Sexsomnia' addict cleared of rape

'Sexsomnia' addict cleared of rape

A Swedish man who had sex with a woman while he was asleep has been acquitted of rape because he suffers from "sexsomnia". READ  

National
Russian jets spotted in Swedish airspace
Russian Su-24 medium-range bomber, known by Nato as 'Fencer,' flies at undisclosed location in Russia in 2002. File photo: AP

Russian jets spotted in Swedish airspace

UPDATED: Two Russian fighter jets violated Swedish airspace on Wednesday, prompting the government to request an urgent report from the Armed Forces. READ  

Business
Sweden’s growth 'better than expected'
Strong household consumption is helping Sweden's growth. Photo: Mona-Lisa Djerf/SvD/TT

Sweden’s growth 'better than expected'

Sweden’s gross domestic product grew 2.6 percent in the second quarter of 2014 compared to the same period a year earlier, with the economy performing much better than previously thought. READ  

Presented by West Sweden
West Sweden prepares for lobster premiere
Sweden's lobster season starts on Monday. Photo: Jonas Ingman

West Sweden prepares for lobster premiere

It's almost time to catch your own dinner off the west coast of Sweden. The lobster season gets underway on Monday, with fishermen and tourists taking to the seas in the hope of stocking up on the traditional Swedish delicacy. READ  

National
Gas leak leaves Sony staff in Sweden hospital

Gas leak leaves Sony staff in Sweden hospital

An Ozone gas leak at Sony Mobile's offices in Lund has put eight people in hospital, with nine others needing to be checked by doctors. READ  

Elections 2014
Social Democrats get permission to govern
Stefan Löfven is set to become Prime Minister. Photo: TT

Social Democrats get permission to govern

Sweden's parliamentary speaker has given Social Democrat leader Stefan Löfven the all-clear to form a government. On Friday Löfven is expected to meet the heads of the Liberal and Centre parties. READ  

Elections 2014
Vote quirk gives Sweden Democrats extra seats
Sweden Democrat leader Jimmie Åkesson celebrates his party's election success. Photo: Lars Pehrson/SvD/TT

Vote quirk gives Sweden Democrats extra seats

The Sweden Democrats, who became the third largest party in Sunday's election, have learned they will get two more seats than expected due to a quirk in the country's election system. READ  

Tech
Ericsson to axe modems and cut jobs
Ericsson CEO Hans Vestberg, pictured here presenting the comapny's quarterly report in July. Photo: Annika af Klercker/TT

Ericsson to axe modems and cut jobs

Swedish telecom giant Ericsson has confirmed it will cut jobs in Sweden and abroad after the company announced on Thursday morning it would stop developing modems. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Society
What's on in Sweden
Politics
How Sweden Democrats went mainstream
Politics
Scandinavia and Scotland: closer links?
Gallery
Property of the week - Eskilstuna
Sponsored Article
How to start a business in Stockholm
Blog updates

17 September

Deep election analysis (Blogweiser) »

"You think you’re bad? Well I’m American. http://www.youtube.com/watch?v=NFbomLID0vU Deep deep analysis on Swedish election results. Vlog post: https://t.co/tjQgfa5Yie #svpol #val2014 #politics pic.twitter.com/oEK5ADFT8L — Joel Sherwood (@joeldsherwood) September 17, 2014 " READ »

 

15 September

Liten, litet, små & lilla (The Swedish Teacher) »

"Hej igen! Have you ever been confused about when to use “liten”, “litet”, “små” and “lilla”? Today I’m going to sort out how use the adjective “liten” (small) and the different forms of it. Liten or litet? “Liten” is the form we will use when referring to a noun with the gender “en”. For example: Min pappa har en..." READ »

 
 
 
Society
How I became a surf blogger when I moved to Sweden
Gallery
People-watching: September 13th
Society
Why is Stockholm's Södermalm so cool?
Gallery
People-watching: September 11th
Gallery
People-watching: September 13th
Politics
Five possible election outcomes
Politics
Sweden elections: How do they work?
Politics
Sweden elections: Who's who?
Lifestyle
What's on in Sweden
Gallery
Property of the week - Hornstull, Stockholm
Analysis
Five differences between the UK and Sweden
Welshman Jonny Luck is now a chef in Sweden
Society
How I opened my own restaurant in Sweden's Malmö
Sponsored Article
Stockholm tech fest: relive the magic
Gallery
People-watching September 8th
Photo: TT
Politics
Feminists fight for first seats
Politics
Immigration cut push from Sweden Democrats
Sheryl Sandberg says women have "low expectations"
Tech
Facebook exec talks women's limits in Swedish business
Politics
Left Party calls for justice and equality
Politics
Green Party wants 'better world' for kids
Lifestyle
The five best Swedish songs of the month
Sponsored Article
Introducing… Insurance in Stockholm
Sponsored Article
Graduates: Insure your income in Sweden with AEA
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

869
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
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
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