The area has been sealed off as rescue work continues. Police now fear that the entire district may either become severely damaged or burn down entirely.
“I can see that there is still a lot of smoke coming from there so they haven’t yet got the fire 100 percent under control,” said police spokesman Bo Eriksson.
The fire started in a pub on the ground floor, with smoke quickly spreading to the rest of the building through the ventilation system. The cause of the fire is not yet known.
According to police, a number of people who were drawn to the area out of curiosity were left requiring treatment from ambulance staff after inhaling smoke from the blaze.
A pregnant woman living in the building where the fire stared has been taken to hospital for a check-up. She is not thought to have incurred any injuries.
Emergency services are advising all those living in the central Falun area who have not been evacuated to remain indoors.