Investment Property in Stockholm

Invest in Real Estate in Stockholm

Investment Property in Stockholm
Investment Property in Stockholm

Stockholm property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Stockholm .

Search Map of Stockholm Investment Real Estate

Stockholm (Swedish: [ˈstɔ̂kː(h)ɔlm] (listen)) is the capital and largest city of Sweden as well as the largest urban area in Scandinavia. Approximately 980,000 people live in the municipality, with 1.6 million in the urban area, and 2.4 million in the metropolitan area. The city stretches across fourteen islands where Lake Mälaren flows into the Baltic Sea. Outside the city to the east, and along the coast, is the island chain of the Stockholm archipelago. The area has been settled since the Stone Age, in the 6th millennium BC, and was founded as a city in 1252 by Swedish statesman Birger Jarl. It is also the county seat of Stockholm County. For several hundred years, Stockholm was the capital of Finland as well (Finnish: Tukholma), which then was a part of Sweden. The population of the municipality of Stockholm is expected to reach one million people in 2024.

Stockholm is the cultural, media, political, and economic centre of Sweden. The Stockholm region alone accounts for over a third of the country’s GDP, and is among the top 10 regions in Europe by GDP per capita. Ranked as an alpha-global city, it is the largest in Scandinavia and the main centre for corporate headquarters in the Nordic region. The city is home to some of Europe’s top ranking universities, such as the Karolinska Institute, Stockholm School of Economics, KTH Royal Institute of Technology and Stockholm University. It hosts the annual Nobel Prize ceremonies and banquet at the Stockholm Concert Hall and Stockholm City Hall. One of the city’s most prized museums, the Vasa Museum, is the most visited non-art museum in Scandinavia. The Stockholm metro, opened in 1950, is well known for the decor of its stations; it has been called the longest art gallery in the world. Sweden’s national football arena is located north of the city centre, in Solna. Avicii Arena, the national indoor arena, is in the southern part of the city. The city was the host of the 1912 Summer Olympics.

Stockholm is the seat of the Swedish government and most of its agencies, including the highest courts in the judiciary, and the official residencies of the Swedish monarch and the Prime Minister. The government has its seat in the Rosenbad building, the Riksdag (Swedish parliament) is seated in the Parliament House, and the Prime Minister’s residence is adjacent at Sager House. Stockholm Palace is the official residence and principal workplace of the Swedish monarch, while Drottningholm Palace in neighboring Ekerö serves as the Royal Family’s private residence.

The financial stability of Stockholm has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Stockholm

 

Renting out your Stockholm buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Stockholm are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Stockholm and be prepared to change your initial outlook.
  • Thoroughly research the Stockholm location with a special emphasis on fringe areas outside the main Stockholm metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Stockholm.
  • Ensure that your target investment property in Stockholm appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Stockholm provides the secure knowledge that your money is working harder than it would in a local Stockholm bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Stockholm, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Stockholm property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Stockholm

Flipping property in Stockholm

 

Flipping property is when we advise clients to buy a Stockholm property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Stockholm market has a time to react to the renovation.

 

The Flipping Strategy in Stockholm

 

Investment property flipping in Stockholm is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Stockholm real estate investments are sometimes referred to by professionals as ‘distressed’ Stockholm real estate.

 

What is distressed Stockholm property:

 

  • Stockholm property in need of renovation
  • Stockholm real estate with a change of purpose and use
  • Oversold Stockholm property
  • Bank repossessions in Stockholm

Put simply, long term investors in Stockholm purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Stockholm investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Stockholm property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Stockholm use a minimum profit value of 22% when looking at potential Stockholm projects.

 

The reason for this is because there are lots that can go wrong in Stockholm property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Stockholm

 

Property Secured Investments is a Private Equity fund that invests in Stockholm and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Stockholm

For luxury property investors hoping to add a superb property in Stockholm to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Stockholm, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Stockholm should be entrusted to only the highest-quality agency.

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