Savills: pandemic drives investor appetite in Swedish multifamily sector

Investor appetite is growing in the Swedish multifamily sector, which is expected to experience heightened competition as new residential funds enter the market across Europe, according to Savills.

Driving the demand toward this sector is a notable housing shortage of an estimated 640,000 homes between 2018 and 2027 — or 64,000 new homes per year — with the current development pipeline insufficient to satisfy demand. In addition, the need for new housing is estimated to be highest in Stockholm, Gothenburg and Malmo, the three large metropolitan regions in Sweden.

Demand for Swedish multifamily assets is expected to increase as investors seek a stable income in a safe market due to the ongoing COVID-19 pandemic, notes Savills.

“The mismatch between the volume of capital that will be targeting the sector and the lack of available product should lead to more forward funding deals and development initiatives,” said Peter Wiman, head of research at Savills in