Moving to Sweden: Housing options & real estate market for expats

Finding the perfect apartment is often the first major hurdle for newcomers when moving to Sweden. The Swedish property market – especially in metropolitan areas – is highly competitive: the national vacancy rate is only 1.3 percent, which corresponds to about 20,000 immediately available apartments – a rate even lower than in German metropolises such as Munich or Berlin.Unlike in Germany, where rents are tied to the local comparative rent, rents in Sweden are negotiated in a system that reflects the actual costs of the apartment (construction, land, operation). From April 2026, new mortgage rules will further stimulate the property market. This guide provides you with a comprehensive overview of the various housing options, the most important legal framework of the Swedish rental market, as well as a current rental price overview of the main cities, to help you make your decision.

Those searching for an apartment in Sweden quickly encounter two central forms of housing that differ fundamentally from the German market:

The Bostadsrätt (cooperative apartment) is by far the most common form of long‑term living in Sweden – more than 40 percent of the Swedish population lives in rental apartments. Here you do not buy the apartment itself, but a share in a housing cooperative (bostadsrättsförening, or BRF), which gives you an unlimited right of use to a specific apartment.By comparison, cooperative apartments exist in Germany only as a niche product. You pay a one‑time cooperative share (insats) as well as a monthly fee (avgift) to the cooperative. This fee covers common expenses such as building insurance, cleaning, waste disposal and possibly heating and water. The advantage: you generally live more cheaply than in a pure rental property, and the apartment can be sold like a property – but only with the consent of the cooperative.

The Hyresrätt (classic rental apartment) is the second major housing form. Here you pay monthly rent to a private or municipal landlord. Unlike in Germany, where tenants have a statutory right to an indefinite contract, fixed‑term contracts (tidsbestämd hyresrätt) for a maximum of two to three years are very common in Sweden. In addition, there are often years‑long, sometimes decades‑long waiting lists on the public housing market. Therefore, many newcomers turn to the so‑called informal market (andra hands), where apartments are temporarily sublet – often at higher prices and with shorter terms.

In addition to the classic models, the following alternatives in Sweden can make the start easier:

 

– ANDRA‑HANDS CONTRACT (SUBLETTING): This is often the only way for newcomers to find an apartment quickly. You rent from a primary tenant who sublets their apartment for a limited period (usually six months to two years). Prices are often 30 to 50 percent above the primary market – a practice hardly known in Germany.

– SERVICED APARTMENTS: In Stockholm, Gothenburg and Malmö, there are providers offering apartments with flexible lease terms as well as additional services such as cleaning and laundry service – ideal for expats with company support.

– STUDENT HOUSING: If you are enrolled at a Swedish university, you have access to special student housing (studentbostäder). They are often cheaper (about 3,500‑6,000 SEK per month) and are allocated via the respective student union. Comparable offers exist in Germany, but Swedish student housing is often even better integrated into the rental market.

– HOUSE PURCHASE WITH ÄGANDERÄTT (FREEHOLD): For those staying in Sweden permanently, buying a property can be an attractive option. Foreigners enjoy the same rights as locals in Sweden: you do not need a special permit, a residence permit or a Swedish personnummer to buy a house or a bostadsrätt. This is a major difference from Germany, where foreigners can also buy but often have to expect additional bureaucratic hurdles. However, buying a property in Sweden does not entitle you to a residence permit – this fundamentally distinguishes the country from southern European countries.

The capital Stockholm is by far the most expensive city in Sweden. A one‑bedroom apartment in the city centre costs between 12,000 and 15,000 SEK (approx. 1,030‑1,290 euros) and more – for furnished second‑hand apartments, the price can be 30‑50 percent higher. In sought‑after districts such as Östermalm, Södermalm or Norrmalm, square metre prices of 294 to over 330 SEK per month are charged. By comparison, a comparable residential location in Munich or Hamburg is in a similar price range, although the Swedish krona has lost value in recent years.

Gothenburg, the second largest city in Sweden, offers a somewhat cheaper alternative. A one‑bedroom apartment in the city centre costs about 10,000 to 11,400 SEK (approx. 860‑980 euros).

Malmö on the Øresund Bridge is the cheapest of the three major cities. A one‑bedroom apartment in the city centre is about 9,000 to 9,500 SEK (approx. 775‑820 euros).

In Uppsala a one‑bedroom apartment costs about 8,500 SEK, in Umeå about 7,500 SEK (approx. 645 euros). In smaller towns and rural regions, rental prices are even cheaper at 5,000‑8,000 SEK per month for a one‑bedroom apartment.

In addition to the base rent, monthly utility costs (driftskostnader) for electricity, heating, water and internet are payable – about 1,000 to 2,000 SEK extra per month. A flat‑rate internet connection costs about 300‑400 SEK per month. Utility costs are often invoiced separately.

DEPOSIT (DEPOSITION): The landlord may demand a deposit for any damage. The exact amount is not set by law; three months' rent is common. Unlike in Germany, there is no legal obligation in Sweden to invest the deposit separately.

TENANT PROTECTION: Tenants in Sweden enjoy strong tenant protection – similar to the German system, but with a crucial difference: the landlord may only terminate the lease for serious reasons (e.g., default in payment, significant nuisance to neighbours). However, the regulation on subletting is significantly stricter: the tenant may not sublet the entire apartment without the landlord's consent – otherwise eviction may result.

RENTAL CONTRACT: : Unlike in Germany, where a written rental contract is the absolute rule, a rental contract in Sweden can be concluded either in writing or orally. Nevertheless, a written contract is strongly recommended. Unlike in Germany, a tenant can only terminate their contract after nine months of tenancy with a notice period of three months.

RENT CONTROL: In Sweden, landlords and tenant associations negotiate the rent level annually. This results in fixed percentage increases: Stockholmshem, the largest municipal landlord, pushed through an increase of 3.5 percent for 2026, while the housing giant SKB achieved 4.8 percent. In Germany, by contrast, rent is based on the local comparative rent.

Moving to Sweden requires careful preparation regarding apartment search, regional differences and legal framework. The real estate market is extremely tight in metropolitan areas such as Stockholm, Gothenburg and Malmö – the vacancy rate of only 1.3 percent gives landlords a strong negotiating position. However, those willing to move to smaller towns or rural regions can find significantly more affordable housing, similar to Germany. The Swedish cooperative model (bostadsrätt) is an attractive alternative to classic purchase, but not without risks – the cooperative's approval can be a hurdle for foreigners in particular. A major difference from Germany: the Swedish personnummer is the key to almost all housing markets. In direct comparison, ancillary purchase costs in Sweden are significantly lower than in Germany – especially the property transfer tax.