Sweden

Gathering forces to strengthen the business

Sweden is Bonava’s second largest market. We offer an attractive range of housing options for rent or ownership, located in or near major cities. At the same time, a firmer control of our projects is required to ensure profitable and sustainable growth.

Market potential and drivers

Population growth and migration to major cities, combined with historically low interest rates and higher disposable income, have previously driven the housing market in Sweden. However, rising living costs and increasing interest rates during 2023 led to a significant slowdown in both housing starts and sales. A large proportion of Swedish households have variable-rate mortgages, meaning that the rate hikes have impacted household spending power and reduced purchasing capacity. Since the summer of 2024, household purchasing power has been strengthening again in line with reductions in the key interest rate.

The Swedish National Board of Housing, Building and Planning (Boverket) estimates the need for newly built homes at just over 50,000 units. The number of housing starts in Sweden has fallen dramatically in recent years, affecting both Bonava and other players in the industry. The longer housing starts remain suppressed due to challenging market conditions, the greater the future housing demand will become.

Strategic focus going forward 

To ensure good profitability and manage shifts in business volume, the business unit has established a more flexible organisation and increased clarity around responsibilities  and control in its projects. The business unit will focus on high margin regions and products, increase the utilisation of turnkey suppliers and build on its strong track record for single- family houses and multi-family houses outside Stockholm, availing of options such as joint ventures