Construction costs for new residential buildings:
Greater Stockholm has most expensive newly built dwellings
Prices paid by investors for newly built dwellings were higher in 2008 compared to 2007 for multi-dwelling buildings and collectively built, one- or two-dwelling buildings.
According to the building price index (BPI) the building cost for multi-dwelling buildings increased by 3 percent. The least expensive multi-dwelling buildings were built in northern Sweden where production costs were SEK 21 784, while costs were highest in Greater Stockholm where the production costs were SEK 35 995.
Cost differences for collectively built one- or two- dwelling buildings
According to the building price index (BPI), the building cost for collectively built one- or two- dwelling buildings increased by 8 percent. Costs were lowest in northern Sweden where production costs were SEK 19 264, and highest in Greater Stockholm where the production costs were SEK 30 653.
High costs for tenant-owned dwellings
Production costs for multi-dwelling buildings that are intended to be tenant-owned dwellings are considerably higher, about 32 percent or SEK 33 586 compared to buildings intended to be rental dwellings SEK 25 476. This difference is probably due to a freer market for tenant-owned dwellings.
Differences of land costs for multi-dwelling buildings
The cost of land per square metre of useful floor space was SEK 6 062 as an average for Sweden. There is a considerable difference between tenant-owned dwellings and rental dwellings. In 2008, the cost of land for tenant-owned dwellings was SEK 7 574, while the corresponding cost for rental dwellings was SEK 3 307.
Definitions and explanations
The Building Price Index (BPI) measures cost development after deducting differences in quality etc.
Production costs consist of the total costs for the dwelling project, i.e. the sum of building costs and land costs. The production cost corresponds to the selling price of the project. Deductions for subsidies have not been made.
"Collectively built one- or two- dwelling buildings" refers to such buildings that are intended for rental or tenant-owned dwellings or built to be sold.
Useful floor space of dwellings (with certain limitations) includes space above ground in a dwelling. Useful floor space is limited to the finished inside walls that enclose each dwelling, and includes kitchen cupboards, wardrobes and the like.
Non-residential floor space in dwellings includes spaces for offices, shops etc.
Useful floor space is the sum of useful floor space of dwellings and non-residential floor space.
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. From the year 2006 a new index model is used for calculating the building price index.