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10/14/14

With such a hot property market at the moment in Sweden, you’ll have to be quick to get in. here’s what’s happening…

As the capital of Sweden, Stockholm is not only one of the most exquisite cities in the world, it’s also the most populated in Scandinavia. However, with the city sprawling over 14 islands in the archipelago, where lake meets sea, all connected by bridges, who could ask for a more serene setting?

A commitment to green spaces, parks and recreation areas, plus all the water-based activities, gives Stockholm further lifestyle appeal. Then again, Stockholm also has a strong and deep-seated history and culture – museums, galleries and castles. But it doesn’t end there, either, as the cool restaurants and a vibrant nightlife support the modernity of the city. Celebrated for being trendy and innovative with regard to architecture, art and design, it’s no wonder Stockholm is so popular right now.

 With the property market being strong at the moment, some have been concerned that the strength of the prices may lead to a real-estate bubble. Circumstances such as limited housing stock, low interest rates and mortgage-interest tax deductions have encouraged the housing prices. It’s easy to understand the massive appeal of waterfront homes that are still close to the city. ‘The Stockholm market is very quick at the moment. The number of listings is down by 25% due to some tax regulations. So buyers are fighting over fewer properties; this situation increases prices and shortens sales times,’ says Niklas Berntzon, managing director of Eklund Stockholm New York.

Having just set the Stockholm record of 200 000 Swedish krona (SEK) – approximately R309 000 – per square metre with the sale of two properties in a row, Niklas says that the majority of the top properties in great areas cost around SEK100 000 (about R155 000) per m2. ‘The Stockholm market is very easy to get into for a foreigner. It’s very regulated and strict by law, so there is no need for dozens of different brokers or lawyers to be involved – just the broker and your bank. So find your favourite property and buy it,’ he says.

Foreigners are permitted to own almost anything in Stockholm, although some of the cooperative housing developments do require owners to be tenants of their property 100% of the time. However, the market is generally quite open and easy to join if you’re quick enough.

Where to buy as a foreigner?

There’s an exciting emergence of new designer apartments that are uplifting certain areas. ‘You have the existing, more posh villa areas in Djursholm, Äppelviken, Saltsjöbaden and some areas of Lidingö. But in the suburbs, hip apartment developments are starting to appear.

At the moment Sundbyberg is hot, especially now that the first new “haute couture” designer development – called Tuletornen – is being built in a previously dull area. It has a sculptural façade and apartments with all the streamlined interiors and amenities of a design hotel, plus the area has been uplifted with cool restaurants, a gym and shops.

New development in Stockholm is changing from dull to sexy, starting with a few developers that really put design and honour into their structures and get us as a company involved early in the process to really build a concept instead of a building,’ says Niklas.

How to buy as a foreigner?

All listed properties can be viewed at hemnet.se. Contact the broker and get into the bidding war. There are no restrictions for foreigners buying in Sweden and transaction costs are low – buyers pay around 1,5% in transfer taxes and you only have one broker.

Visit Stockholm and find your favourite area.  Stockholm islands are very individual – ranging from trendy, green or posh to historical – and the waterfronts are pricy.

The going rates…

·       Apartment in central Stockholm SEK74 975/m2
·       Three- to four-bedroom apartment in the city about SEK15 million (approximately 200m2)
·       High-end apartments are around SEK91 460 to SEK149 940 per m2
·       Waterfront properties range from SEK 21,5 million to SEK 71,5 million
·       *Currency: 1 SEK (Swedish krona) = 0.14 USD

Agents

·       Niklas Berntzon: niklas@esny.se
·       Johan Vesterberg: johan.vesterberg@fastighetsbyran.se

Contact Details:

·       Fastighetsbyran: objekt.fastighetsbyran.se
·       Eklund Stockholm New York: http://www.esny.se/

Find the original article from REAL ESTATE Magazine here.