Swedish Office Buildings Transitioning to Modern Housing Amid Vacancy Crisis
Vacant office buildings in Sweden are increasingly being converted into housing, presenting both opportunities and challenges.
- • Vacant office buildings are increasingly targeted for housing due to flexible work arrangements.
- • Svenska Hus aims to repurpose older properties, with conversion projects rising from 5% to 15%.
- • Challenges include strict municipal energy regulations and financing hurdles from banks requiring high energy ratings.
- • The Telegrafen project in Nynäshamn illustrates successful building conversions, showcasing their potential for housing.
Key details
In Sweden, an increasing number of vacant office buildings are being targeted for conversion into modern residential apartments, amid a crisis in the office real estate market. This change, attributed largely to a shift towards flexible work arrangements, presents both challenges and opportunities for sustainable urban development. Niklas Gahm, property development manager at Svenska Hus, emphasizes that these empty buildings could transform into valuable housing rather than being demolished. Historically, approximately 50% of their projects focus on older buildings, which are often acquired at lower prices. As interest in such conversions rises, the share of conversion projects relative to new constructions has escalated from 5% to around 15%.
However, the process of repurposing these spaces is not without its difficulties. Gahm points out significant hurdles, including compliance with municipal energy regulations and challenges in financing, as banks frequently impose high energy performance standards that older buildings struggle to meet. The low ceilings and poor energy efficiency of many structures from the 1970s and 80s compound these issues.
Highlighting a successful conversion project, the Telegrafen in Nynäshamn exemplifies the potential for revitalizing older properties; three buildings, including one from 1938, are under renovation into appealing living spaces with sea views. Gahm asserts that for future projects to succeed, stronger collaboration between developers and municipalities is essential to preserve a greater portion of existing structures, balancing resource conservation with the historical identity of these buildings.