House prices skyrocket in Sweden – GulfToday

SourceGulf Today
SectorReal Estate
CountryMiddle east

Picture used for illustrative purpose. File Gulf Today Report  The price of single-family homes in Sweden has surged by 17% in the first three months of the year, according to data. The data indicated concerns of market overheating. Svensk Maklarstatistik, an association of real estate agents, added that the rise was a record from when it started collecting data in 2005. "Big price rises are usually followed by a recoil," Hans Flink, head of sales at Maklarstatistik said. "I wouldn't call it a bubble, but there could be a reverse." Sweden’s population has grown rapidly over the years and housing construction has failed to keep up with the growth.  READ MORE  Credit Suisse overhauls as it takes $4.7b hit on Archegos The rental market is highly regulated and widely seen as dysfunctional.

At the same time, ultra-low interest rates have pushed up prices and borrowing levels, leading the central bank, among others, to fret about the threat to the banking system. However, the pandemic didn’t affect growth as more...