Investment Hotlist: Stockholm property market
Every month we let a business insider share his or her hottest investment tips. This month, Tom Lindahl, CEO of Stockholm based property and capital market adviser Tenzing AB, outlines six current opportunities.
• Residential housing development in the inner most suburbs is very interesting right now. Around one-third of Sweden's GDP comes from the Stockholm region and looking forward the region is expected to have 20.000–30.000 new people moving in each year. It's a must to develop new housing in all districts, especially around the subway stations.
• Converting offices to apartments. Many areas that used to be lucrative for offices are now even hotter for housing. Some buildings are being demolished, and in others the stocks can be re-used.
• Office buildings in the inner most suburbs offer high yields compared to the most popular areas in the city. New office buildings are energy efficient and flexible in terms of design and you can fit more people per square metre than in older buildings. There are many interesting areas, such as Liljeholmen and Solna.
• Office buildings in inner city Stockholm also represent good investment opportunities. It's a question of price. There is a relatively large price difference, while the inner city by definition never can grow geographically. Many homes in the city now have higher prices than offices.
• Investors should also follow the massive infrastructure projects being planned for the region, such as the Stockholm bypass and the new tunnel project, Norra länken. They will help create new traffic hubs and numerous investment and speculation opportunities.
• Any acquisition of properties in Greater Stockholm with a yield above 6.5 percent should serve as a motivation. It's mainly a matter of demographics, urbanisation and low interest rates.
Tenzing is a Stockholm-based property and capital market adviser. The company is comprised of a team with experience of all types of transactions within the property and capital markets. In a 2012 survey by leading property magazine Fastighetsvärlden, Tenzing was ranked as top adviser in five out of nine categories and second in the other four.
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This article was published in collaboration with Stockholm Business Region.
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Last Updated (Thursday, 21 March 2013 03:50)










