For last 10 years, home prices in Sweden have increased by 100%, condominium prices - by 200%, while salaries - by only 33%, according to ee24.com citing gdeinvestirati.com. To buy an average house in Sweden (140 sq. m) at current prices, residents of this country have to save the entire salary for 8 years, whereas a decade ago the salary for 5 years would've been enough.
Significant price increase occurred in Sweden in the pre-crisis years, from 2002 to 2007. After 2008 the market has experienced stagnation and decline, and since 2011 prices are increasing again. As it was already reported by the portal ee24.com, during the year (till Q3 2013), the average home price in Sweden increased by 3%, to €239 thousand.
In Stockholm, where demand exceeds supply, the home costs on average €455 thousand (about €6.3 thousand per sq.m), and it's comparable to the record high of 2008.
The growth of real estate prices in Sweden is caused due to the high availability of mortgage and the activity of wealthy foreign investors. Over the last year, 80% of foreign buyers were Norwegians who purchase property at any price in the border regions. Many homes were bought by residents of Denmark and Germany.