Construction: Prices for newly produced dwellings 2020
Prices of newly built multi-dwellings increased in 2020
Statistical news from Statistics Sweden 2021-11-18 9.30
Prices of newly produced dwellings, that is, the prices paid by investors, were higher for multi-dwelling buildings and collectively built one- or two-dwelling buildings in 2020 compared with 2019.
According to the Building Price Index (BPI), building prices increased by 5 percent for multi-dwelling buildings and by 11 percent for collectively built one- or two-dwelling buildings. Last year, building prices increased by about 5 percent for multi-dwelling buildings and decreased by 2 percent for collectively built one- or two-dwelling buildings. The Building Price Index is quality-adjusted.
Prices were highest in Greater Stockholm
The total average production price for multi-dwelling buildings in Sweden was SEK 45 859 per square metre of useful floor space in 2020. Production prices were lowest in northern Sweden, where the average production price was SEK 37 151, and highest in Greater Stockholm, where the average price was SEK 56 760.
The average production price for collectively built one- or two-dwelling buildings was SEK 36 166 in 2020. Production prices were lowest in region 2 (located in the middle of Sweden), where the production price was SEK 31 165, and highest in Greater Stockholm, where the production price was SEK 45 281.
Prices for tenant-owned dwellings were higher
Production prices per square metre for multi-dwelling buildings that are intended as tenant-owned dwellings were 43 percent higher than for buildings intended as rental dwellings (SEK 55 548 compared with SEK 38 925). Higher land prices for tenant-owned dwellings explains a large part of the difference.
In 2020, the average land price per square metre of useful floor space in multi-dwelling buildings was SEK 8 906. The average land price was SEK 14 158 for tenant-owned dwellings and SEK 5 147 for rental dwellings.
The number and design of newly constructed dwellings that form the basis of the production price vary from year to year, making comparisons over time difficult. However, this year’s results indicate that prices are similar to prices in previous years in terms of differences between tenant-owned dwellings and rental dwellings.
Technical variables
The structural work in multi-dwelling buildings predominantly consists of concrete, 80 percent, while 19 percent of multi-dwelling buildings have a structure consisting of wood. Statistics on technical variables are available from 1995 and forward and refer to the whole country. Accompanying statistical tables are available in the Statistical Databases on Statistic Sweden’s website.
Definitions and explanations
Production price refers to the total price of a dwelling project, that is, the sum of building costs, land costs, VAT, and any profit or loss of the building project. The production price refers to the selling price and corresponds to the previous term ‘production cost of the project’. Deductions for any subsidies have not been made.
Collectively built one- or two-dwelling buildings refers to buildings intended for sale or rental as rental or tenant-owned dwellings.
Useful floor space in dwellings (with certain limitations) refers to space above ground in a dwelling. Useful floor space is limited by the finished inside walls that enclose each dwelling, and includes kitchen cupboards, wardrobes and similar.
Non-residential floor space in dwellings refers to leasable spaces for offices, shops and similar.
Useful floor space refers to the sum of useful floor space in dwellings and non-residential floor space.
The Building Price Index (BPI) is a suitable tool for measuring price development that eliminates differences in quality, design and location as far as possible.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.