Prices for newly produced dwellings, i.e. the prices paid by building contractors, were higher in 2005 compared to 2004. Based on useful floor space per square metre (applies to all the given costs for multi-dwelling buildings below), the Building Price Index for multi-dwelling buildings increased by about 7 percent between 2004 and 2005.
The least expensive multi-dwelling buildings were built in northern Sweden where production costs were SEK 17 258, while costs were highest in the Greater Stockholm area at SEK 29 174.
Cost differences for collectively-built one or two dwelling buildings
According to the BPI, costs per square metre of useful floor space in dwellings for collectively-built one or two dwelling buildings increased by 2 percent. Costs were lowest in northern Sweden where production costs were SEK 15 948, and highest in the Greater Stockholm area at SEK 22 897.
High costs for tenant-owned dwellings
Production costs for multi-dwelling buildings that are intended to be tenant-owned dwellings are considerably higher, about 36 percent, compared to buildings intended to be rental dwellings (SEK 27 337 and SEK 20 140 respectively). This difference is probably due to a freer market for tenant-owned dwellings. In 2005, 56 percent of multi-dwelling buildings were intended for tenant-owned dwellings. The percentage was the same in 2004.
There is a considerable difference between tenant-owned dwellings and rental dwellings. In 2005, the cost of land for tenant-owned dwellings was SEK 5 387, while the corresponding cost for rental dwellings was SEK 1 906.
Sharp rise in costs in recent years
The Building Price Index, BPI is a helpful tool to measure cost development. Differences in quality, design and location are eliminated to the greatest possible extent.
Between 1999 and 2005, costs for multi-dwelling buildings increased by 37 percent. The corresponding increase for collectively-built one or two dwelling buildings was 41 percent.