Published on and written by Cyril Jarnias
Behind the image of a homogeneous Nordic country, Sweden actually hides a deeply fragmented real estate market. Between a two-room apartment in Södermalm, a family villa near Gothenburg, a loft in Malmö, or a wooden house in Norrland, the price gaps are staggering. Understanding these differences is no longer a luxury for a buyer or investor: it’s a must to avoid overpaying… or missing an opportunity.
Good to Know:
After a correction of nearly 16% between 2022 and 2023, prices are recovering moderately, driven by lower interest rates and a rebound in transactions. However, the recovery is uneven: Stockholm is lagging while some northern regions are experiencing strong growth. Therefore, it has become essential to compare different Swedish cities.
A National Market in Recovery, But Far From Uniform
The first key to understanding is national. In the first quarter of 2025, the average price of a house in Sweden is around 4.05 million kronor, or just under 370,000 euros. Apartments trade at an average of around 2.6 million kronor, equivalent to about 228,000 euros. Houses have increased by about 2 to 3% year-on-year, apartments by about 5%.
16
Cumulative decline in French real estate prices since the 2022 peak, after seven consecutive quarters of correction.
Interest rates play a central role. The central bank, the Riksbank, raised its policy rate to 4% in 2023, triggering the correction. Since 2024, it has reversed course, bringing this rate down to 2.25% by spring 2025. New mortgage loans are being signed at an average of around 3.1% in mid‑2025, compared to over 4.6% a year earlier. This easing is giving households more breathing room, but in an economic context that remains soft, with weak growth and unemployment near 10%.
In this framework, most forecasts anticipate a national price increase of 2 to 5% per year by 2026. But behind this average, the trajectories of cities diverge sharply.
Stockholm, Gothenburg, Malmö: Three Markets, Three Realities
The Stockholm–Gothenburg–Malmö trio attracts the focus, skilled jobs, and a good share of real estate pressures. Yet, their price levels and dynamics are far from comparable.
Stockholm, a Very Expensive Capital That’s Stalling
Stockholm remains by far the most expensive city in Sweden. In Stockholm County (RIKS1), the average price of a house is around 6.99 million kronor, or about 638,000 euros. In the city itself, estimates place the average house price between 6.7 and 7 million kronor.
For apartments, the gap with the rest of the country is even more spectacular. In central Stockholm, prices are around €7,700/m² according to some sources, and up to €9,744/m² according to others. In concrete terms, a budget of €584,640 can buy about 60 m² in the city center. In the most sought-after locations, such as Östermalm or Vasastan, this same budget sometimes only gets you 45 to 50 m². In the suburbs, it opens the door to more comfortable spaces, around 70 to 80 m².
The contrast with the national level is clear. While all of Sweden averages around 40,000 SEK/m², Stockholm climbs to nearly 75,000 SEK/m², and even beyond 90,000 SEK/m² in some central neighborhoods.
3
Paris is compared to the two other largest cities in France in this numerical overview.
| City | Average House Price (SEK) | Apt. Price Center (€/m², main sources) |
|---|---|---|
| Stockholm | 6.8 – 7.0 M | ~7,700 to 9,744 |
| Gothenburg | ~5.1 M | ~4,700 to 5,446 |
| Malmö | 3.7 – 4.0 M | ~2,500 to 2,750 |
Most striking is that Stockholm, despite its stratospheric levels, is no longer the locomotive it once was. In 2025, the county records a slight annual decline of about 1.7%, while some more peripheral regions are soaring. Central Stockholm barely manages a 0.6% year-on-year gain. After years of euphoria, the city has even exited the “bubble territory” according to the UBS index: in three years, real prices there have fallen by about 30%.
In terms of rental yield, the capital is not the most generous either. Apartments offer an average gross yield of 4.23%, with a range from 2.7 to 5.73%. For such an expensive market, these figures are decent but less attractive than in some university or regional cities.
Gothenburg, a More Balanced Market with Higher Yield
Gothenburg occupies a middle ground. The country’s second city, an industrial port and a metropolis in transition, shows an average house price around 5.1 million kronor. Apartments in the center range between €4,700 and €5,446/m², almost half that of Stockholm.
Example:
With a fixed budget of €584,640, a buyer can acquire about 80 to 100 m² in the heart of the city center. On the other hand, in suburban areas, this same budget allows for a purchase of 120 to 150 m², more than double the space available in the capital’s center.
Rental yields are higher: on average 4.96% for apartments, with extremes between 4.61 and 7.11%. In other words, Gothenburg offers a rare compromise in Sweden: prices more affordable than Stockholm, real economic dynamism, and higher rental profitability.
In terms of trend, the metropolitan area is performing better than the capital. In the first quarter of 2025, the house price index rises by 4% year-on-year (3.1% in real terms), after a recovery already started in late 2024. Over three months, prices gain 1.1%. The market seems to have digested the correction faster than Stockholm.
Some areas illustrate the ongoing transition well. The Hisingen district, long perceived as peripheral, is undergoing urban transformation. Villas there range between 4 and 6 million kronor, well below Stockholm’s upscale suburbs, while benefiting from development projects that support demand.
Malmö, the “Affordable” and Highly Profitable Metropolis
Malmö, the third largest city, plays in a different league in terms of prices. The average cost of a house ranges between 3.7 and 4 million kronor, significantly below Stockholm and Gothenburg. For apartments, available data converges on a range between €2,500 and €2,750/m².
Attention:
With a budget of €584,640, a household can buy 150 to 200 m² in downtown Malmö, compared to 200 to 300 m² on the outskirts, making it the most accessible major metropolis in Sweden relative to surface area.
Even better, the city tops the charts for rental yield among major cities. Apartments offer an average gross yield of 6.02%, with a range between 4.23 and 6.77%. This is higher than Stockholm and Gothenburg, and close to the best national scores.
This attractiveness is accompanied by solid price momentum. In the first quarter of 2025, the house price index in Malmö jumps 5.3% year-on-year (4.3% in real terms), following a series of marked increases already in 2024. On a rolling year basis, prices in the metropolitan area have risen about 2%, better than the capital.
Certain areas of the city, however, embody an upscaling trend. The Västra Hamnen waterfront district lines up contemporary villas between 6 and 8 million kronor, levels close to high-end European markets, well above Malmö’s average entry ticket.
University and Tech Cities: The Other Sweden on the Rise
Outside the metropolitan trio, another price geography is emerging around major universities and tech hubs. These cities combine several advantages: structural rental demand, purchase prices lower than in regional capitals, and sustained price growth.
Uppsala, Champion of Rental Profitability
Uppsala perfectly illustrates this model. The average price of a house there ranges between 4.2 and 4.8 million kronor. For an apartment, expect around €6,200/m², cheaper than Stockholm but more expensive than Malmö. In terms of yield, the city holds the top national spot with an average gross yield of 7.04%, and a range from 5.59 to 8.31%.
Tip:
For an investor, university cities offer a rare combination of assets: intermediate entry prices, strong student and scientific demand, and very low rental vacancy. These factors explain why forecasts for these cities anticipate price increases on the order of 6 to 8% per year in the most dynamic areas.
Lund, Science, Tech, and a Solid Market
Lund follows a similar trajectory. Houses typically trade between 4 and 4.5 million kronor. Apartments show an average price around €5,800/m². The development of Lund Science Village, a booming tech hub, attracts researchers, engineers, and innovative companies, pushing the market upward.
Good to Know:
Rental yields in Lund exceed 6.5% on average. This performance is supported by steady rental demand and more contained prices per square meter than in regional capitals, making the city an interesting option for diversifying a real estate investment outside Stockholm.
Västerås, Örebro, Linköping: More Accessible Markets
Other medium-sized cities offer an even more affordable alternative, without giving up a certain dynamism. In Västerås, the average house price varies between 3.2 and 3.8 million kronor, with apartments around €4,200/m². In Örebro, houses are rather between 2.8 and 3.4 million, apartments at about €3,800/m².
These markets display neither the peaks of Stockholm nor the growth spikes of Norrland, but they rest on fairly robust foundations: diversified employment basins, universities, moderately rising rents, and prices still accessible for households. With an investment horizon of five to ten years, these cities are presented as well-positioned for annual growth of 3 to 5%.
North, South, Countryside: The Great Territorial Divide
Beyond cities, Sweden is structured into large regional clusters (riksområden) where price ratios are widening. The comparison between the Stockholm region and rural areas in the north shows how misleading it is to speak of “one” Swedish market.
The Riksområden: Eight Major Zones, Eight Price Levels
Official statistics distinguish eight major geographical clusters. Their comparison provides a good basis for understanding.
| Riksområde | Average House Price (SEK) | Approx. Equivalent (EUR) | Annual Variation Q1 2025 |
|---|---|---|---|
| RIKS1 Stockholm (county) | 6,990,000 | ~637,700 | +4.75% |
| RIKS2 East Central | 3,465,000 | ~316,000 | +5.13% |
| RIKS3 Småland + islands | 2,722,000 | ~248,000 | +6.29% |
| RIKS4 South Sweden | 3,914,000 | ~357,000 | +5.36% |
| RIKS5 West Sweden | 4,134,000 | ~377,000 | +6.49% |
| RIKS6 North Central | 2,396,000 | ~219,000 | +5.18% |
| RIKS7 Central Norrland | 2,332,000 | ~213,000 | +12.17% |
| RIKS8 Upper Norrland | 2,585,000 | ~236,000 | +4.28% |
The price scale is clear: Stockholm county costs about three times more than Central Norrland. But the latter records the highest annual increase (+12.17%), while Stockholm progresses more moderately. Another reading confirms that Upper Norrland, beyond the Arctic Circle, records a year-on-year increase of about 12.6%, ahead of North Central Sweden (+8.5%).
In other words, regions starting from low price levels are now experiencing the fastest growth, while the capital, at the top of the cycle, is still absorbing past excesses.
Economic Analysis
Countryside, Small Towns, and Houses Under 2 Million
In rural areas (Dalarna, Norrbotten, Jämtland…), house prices range between 500,000 and 2 million kronor. Apartments trade between €1,000 and €3,000/m². In many cases, livable houses of about a hundred square meters, with a garden, remain accessible for around 800,000 to 1.5 million kronor.
Good to Know:
Properties needing renovation in rural areas present acquisition opportunities at very attractive prices, ranging from $4,500 to $68,000. However, these purchases come with major challenges: often high renovation costs, significant distance from large cities, and a limited local job market.
Conversely, the residential belt of large cities, especially Stockholm’s suburbs, falls within a range of 3 to 5.5 million kronor for a house, with apartments between €5,000 and €7,500/m². Affluent municipalities like Täby, Djursholm, or Lidingö even display levels comparable to or exceeding the capital, with villas easily surpassing 8.6 million kronor.
When the Same Budget Translates Into Square Meters
To concretely measure the gaps between cities, just look at what surface area the same budget can buy.
| Budget: €584,640 (reference) | City Center (m²) | Suburbs / Outskirts (m²) |
|---|---|---|
| Stockholm | ~60 | ~70–80 |
| Gothenburg | ~80–100 | ~120–150 |
| Malmö | ~150–200 | ~200–300 |
| Countryside (house + land) | — | 100–200 (equiv. 500k–2M SEK) |
This simple comparison shows how Malmö or a medium-sized city in the south can triple the accessible surface area for an equal budget, compared to central Stockholm. The trade-offs between location, space, and resale potential are immediately apparent in these numbers.
Cost of Living, Rents, and Price-to-Income Ratios
Prices per square meter don’t tell the whole story. For a household moving in or a rental investor, the cost of living, rent levels, and especially the ratio between prices and local incomes are just as decisive.
Stockholm More Expensive, But Also Tighter for Households
Cost of living indices confirm Stockholm’s special status. The capital shows an index of about 64 to 66 for current expenses, with a rent index around 30 to 33. Gothenburg follows with a cost of living around 60 and a rent index close to 22. Malmö is slightly less expensive, with respective indices near 60 and 20.
12000
The average monthly rent for a one-bedroom apartment in Stockholm in 2024.
Solvency indicators also show the tension in the capital. The price-to-income ratio there is around 13, the highest in the country. Mortgage payments represent over 90% of disposable income in standard simulations for Stockholm, compared to about 48% in Gothenburg. The affordability index there is about 1.1, significantly less favorable than Gothenburg’s 2.1.
In other words, the capital combines the highest cost per square meter, some of the most expensive rents, and a price-to-wage ratio that weighs heavily on household budgets.
Rental Yields That Change the Game Depending on the City
For an investor, comparing gross yields reminds us that the most expensive city is not necessarily the most profitable. Data compiled for the second quarter of 2025 gives the following panorama:
| City / Region | Average Gross Rental Yield (apartments) | Observed Range |
|---|---|---|
| Uppsala | ~7.04% | 5.59 – 8.31% |
| Malmö | ~6.02% | 4.23 – 6.77% |
| Gothenburg | ~4.96% | 4.61 – 7.11% |
| Stockholm | ~4.23% | 2.7 – 5.73% |
| Sweden Average | ~5.56% | — |
University cities like Uppsala and Lund display the best ratios, thanks to permanent student housing demand, more contained purchase prices than Stockholm, and near-zero vacancy. Malmö also manages to combine affordable prices and high yields, which explains its favorable positioning in many investment analyses.
Example:
Unlike other markets, Stockholm, although the most expensive city, offers only an average rental yield slightly above 4%. Investment there is more motivated by anticipation of long-term capital gains and the scarcity of real estate supply, rather than immediate rental profitability.
International Comparison: Stockholm in the Club of the Most Expensive Cities
To place major Swedish cities, it’s useful to compare them to other European capitals. Figures for prices per square meter for apartments show that Stockholm plays in the same league as some very tight metropolises.
| European City | Apt. Price Center (€/m²) | Difference vs Stockholm (~€9,744/m²) |
|---|---|---|
| Stockholm | ~9,744 | — |
| Amsterdam | 9,600 – 10,000 | similar or higher |
| Copenhagen | 8,000 – 9,000 | 8 – 15% cheaper |
| Oslo | 7,000 – 8,000 | 18 – 28% cheaper |
| Helsinki | 6,500 – 7,500 | 23 – 33% cheaper |
| Vienna | 6,000 – 7,000 | 28 – 38% cheaper |
| Berlin | 5,500 – 6,500 | 33 – 43% cheaper |
Stockholm appears as the most expensive Nordic capital for residential real estate, clearly ahead of Copenhagen and Oslo. Only Amsterdam is, according to sources, in an equivalent or slightly higher range.
Good to Know:
Rental yields in Sweden (4 to 7%) are higher than in Copenhagen (3 to 5%) and Oslo (3 to 4%). For a foreign investor, the Swedish market remains attractive thanks to this decent yield, high but comparable prices to Amsterdam, legal transparency, and a krona that has slightly recovered against the euro after a period of weakness.
Underlying Trends: Who Will Outperform in the Coming Years?
Medium and long-term projections confirm that the gaps between cities will not disappear overnight. They even suggest an increasing polarization between mature markets and those still in a catch-up phase.
Metropolises vs Catching-Up Regions
For major cities – Stockholm, Gothenburg, Malmö – most analyses mention an average annual progression of 2 to 3% in the coming years. The recent correction has eased excesses, but fundamentals (employment, attractiveness, shortage of new housing) continue to support prices.
In dynamic small towns, university hubs (Uppsala, Lund, Linköping, Umeå) and northern regions, projections are more ambitious: 4 to 6% annual appreciation are envisaged, sometimes more in certain “hot spots”. Central and Upper Norrland, in particular, start from low price levels and benefit from large-scale industrial and energy projects, as well as new lifestyles focused on remote work.
3 to 5
Forecasted average annual rent increase in major French cities for the period 2025‑2030.
Role of Public Policies, Credit, and Housing Shortage
The rules of the game complete this picture. The Swedish market is regulated by a loan-to-value cap of 85%, which the government is considering easing to 90% in the medium term. The mandatory 15% initial down payment remains, for now, a filter for first-time buyers. Reform projects could ease amortization requirements for the most indebted households.
180000-220000
On a house costing 4 million kronor, ancillary purchase costs (registration fees, loan fees, etc.) represent an additional envelope of 180,000 to 220,000 kronor.
At the same time, the construction crisis limits new supply. The number of housing starts collapsed after the 2021 peak, and construction costs have surged due to inflation and environmental standards. In major cities, building permits are picking up slightly, but the pipeline remains well below needs. Public estimates mention a cumulative shortage of around 150,000 homes, or even over 600,000 if all needs are considered.
In practice, this means that, regardless of the city, pressure on supply will remain a factor supporting prices. But this tension is not expressed in the same way everywhere: in Stockholm, it translates into record waiting lists for regulated rental housing; in the north or in university cities, into accelerated price increases.
How to Read the Price Map Between Swedish Cities?
Comparing real estate prices between cities in Sweden actually comes down to cross-referencing four dimensions: the absolute price level, the growth momentum, the potential rental yields, and the local price-to-income ratio.
Stockholm offers the most market depth, the greatest liquidity, and an international status that reassures investors. But it also combines one of the highest prices per square meter in Europe, very degraded affordability for local households, and more modest rental yields than in other cities.
Gothenburg positions itself as a compromise: more affordable, more balanced, and with decent yields. Malmö has become the country’s large “value” city: generous surface areas for a given budget, still contained prices, and superior rental profitability.
Good to Know:
University cities (Uppsala, Lund) and certain hubs (Västerås, Örebro, Umeå, Luleå) offer good potential thanks to reasonable prices, captive demand, and rapid growth. Rural areas and Norrland offer very low prices, but with reduced liquidity and structural constraints.
At a time when analysts are betting on moderate annual price growth for the entire country, the challenge, for a buyer as well as an investor, is therefore not to know whether Sweden is expensive or cheap, but in which city and region to position oneself. That’s where the bulk of the long-term performance difference now plays out.
Cyril Jarnias is an independent expert in international wealth management with over 20 years of experience. As an expatriate himself, he is dedicated to helping individuals and business leaders build, protect, and pass on their wealth with complete peace of mind.
On his website, cyriljarnias.com, he shares his expertise on international real estate, offshore company formation, and expatriation.
Thanks to his expertise, he offers sound advice to optimize his clients' wealth management. Cyril Jarnias is also recognized for his appearances in many prestigious media outlets such as BFM Business, les Français de l’étranger, Le Figaro, Les Echos, and Mieux vivre votre argent, where he shares his knowledge and know-how in wealth management.
