Demographic challenges create opportunities in the property market
"Newsec estimate an investment requirement of more than SEK 1 500 billion in new residential and public properties until 2030.This is a result of population growth, which will be a major challenge for the Swedish property sector and Sweden at large," says Max Barclay, MD of Newsec Swedish consulting companies.
Sweden, along with the rest of Europe, face major demographic changes with significant refugee flows, historically high birth rates and an aging population. Only in Sweden the population is estimated to increase by 2% 2015 and 2016 as a result of immigration. These changes in population will entail serious consequences for the property sector the next 15 years, not least with regard to community properties.
The Swedish Riksbank decided to cut the interest rate further to -0,5% at its last meeting in February. The latest rate cut strengthens an already very strong Swedish property market. Low interest rates and good access to funding is expected to continue until 2017, which will sustain the good financing climate on the Swedish property market throughout 2016.
For further information, please contact:Max Barclay, Manging Director, Newsec SwedenTel: +46 (0)708 44 30 65, e-mail firstname.lastname@example.org Niklas Alm, Head of Communications, NewsecTel: +46 (0)708 24 40 88, e-mail email@example.com