Swedish Housing Market Shows Signs of Recovery and Growing Optimism in Early 2026

The Swedish housing market experienced a cautious but positive recovery in 2025, setting the stage for growing optimism in 2026. Nationwide prices for apartments and villas increased modestly by 0.2% over the year, with sales volumes reaching record levels reminiscent of 2021. Though winter 2022’s energy price spikes and rising interest rates initially dampened the market, recent developments have sparked a renewed demand and gradual stabilization.

In major urban centers, price trends were more pronounced: Stockholm’s inner city apartment prices rose 3.7%, while central Gothenburg and Malmö saw increases of 1.5% and 0.5% respectively. The second half of 2025 showcased a pivotal shift with a notable decrease in the supply of villas for sale, the first such decline since Russia’s invasion of Ukraine, indicating tightening market conditions.

Real estate agents and market analysts, including Erik Wikander, CEO of Svensk Fastighetsförmedling, highlight this as evidence of a thawing market and growing buyer and seller confidence. December 2025 recorded the highest housing sale volumes since 2021, with condominium sales up nearly 5% over the previous year, despite slight monthly price declines. This surge aligns with governmental easing of amortization rules and increases in mortgage ceilings announced during the holiday season, measures expected to further invigorate market activity, particularly for smaller dwellings.

While optimism prevails, some caution remains due to the political uncertainties of the upcoming election year, which could moderate price rises. Analysts anticipate a housing price increase of approximately 4-5% for 2026, a tempered yet encouraging outlook compared to earlier forecasts.

The SEB housing price indicator reflects this sentiment, with 52% of households expecting prices to rise—the highest level of optimism since January 2022. This convergence of improving economic conditions, policy adjustments, and buyer confidence points to a stabilizing and potentially strengthening housing market moving forward into 2026.