Office - Q1 2025
Office completions reached 116,000 sq m across Sweden’s three largest cities in H1 2025, up 115% YoY. Stockholm led with 91,000 sq m, followed by Gothenburg (17,500 sq m) and Malmö (7,500 sq m). Vacancy in Stockholm CBD declined to 8.0%, while Gothenburg and Malmö CBDs rose to 14.0% and 8.0%, respectively. Prime rents remained stable in Stockholm and Malmö, while Gothenburg increased to SEK 4,200/sq m. Yields saw slight compression in Stockholm (3.90%) and Gothenburg (4.55%), with Malmö flat at 4.85%.
Office - Stockholm - Q2 2025
New completions in Greater Stockholm totaled 91,000 sq m in H1 2025, mostly in decentralised areas. Vacancy rose overall to 16.5%, driven by a 21.0% rate in decentralised zones, while the CBD improved to 8.0% and City Centre held at 13.0%. Prime rents were stable QoQ, at SEK 9,800/sq m in the CBD, SEK 6,200 in the City Centre, and SEK 4,150 in decentralised areas. CBD yields compressed slightly to 3.90%, while other submarkets remained flat.
Logistics - Q2 2025
Sweden saw 224,000 sq m of logistics completions in H1 2025, with 75% of Q2’s 56,700 sq m already let. Vacancy dropped in Stockholm to 12.5% and held steady at 9.0% nationally. Stockholm and Gothenburg prime yields declined 10 bps to 4.90%, while Öresund and regional cities remained unchanged. Prime rents remained stable across all markets, except Gothenburg, where rents rose to SEK 1,000/sq m (+2.6% QoQ).
Residential - Q2 2025
Residential was the most active segment in H1 2025, with SEK 25.0 billion in transactions—a 123% YoY increase—accounting for 48% of the total market. Prime yields continued to compress, now at 3.95% in Stockholm, 4.45% in Gothenburg, and 4.60% in Malmö, while regulated rents remained stable. Despite an 18% YoY drop in Q4 2024 housing starts, normalising construction costs and increased investment liquidity are supporting ongoing market recovery.
Retail - Q2 2025
Retail is beginning to benefit from improved household consumption, supported by rising real incomes and lower interest rates. Prime rents remained stable in high streets and shopping centres, while retail parks saw continued growth. Investment activity remained limited, with SEK 2.4 billion in Q1 volume (7% of total), and slight yield compression seen in high street assets to 4.00%. Shopping centre and retail park yields stood at 4.45% and 6.25%, respectively. Retail sales volumes showed steady growth in H1 2025, up 4.9% YoY overall.
Economic & Investment Overview - Q2 2025
Swedish GDP declined by 0.2% in Q1 2025, weighed down by global trade uncertainty. Recovery is expected later in the year, driven by household consumption. Inflation is projected to remain below 2%, with two Riksbank rate cuts planned, lowering the policy rate to 1.75%. Q2 transaction volume rose to SEK 37.0 billion (+21% YoY), with residential assets leading (48%), followed by industrial (21%) and office and retail (each 7%). Prime yields compressed slightly across office (3.90%), logistics (4.90%), and residential (3.95%), while retail (shopping centres) remained stable at 4.45%.
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