Swedish Real Estate Hotter Than Ever as ‘Hysteria’ Hits

Residential apartment blocks in the Kungsholmen district of Stockholm. 

Photographer: Mikael Sjoberg/Bloomberg
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Swedish house prices soared to the highest level ever recorded, as a growing number of people make use of unprecedented central bank stimulus to upgrade into bigger homes.

“From a credit perspective, one can only conclude that the market has been gripped by hysteria, which is connected to central banks pumping money into the system,” said Carl Johan Lagercrantz, a portfolio manager at Strand Kapitalforvaltning AB in Stockholm.