Swedish Home Construction Set to Plummet This Year, Nordea Says
A residential development under construction in the Ursvik district of Stockholm, Sweden.
Photographer: Erika Gerdemark/BloombergThis article is for subscribers only.
Swedish home construction is likely to plummet in the wake of falling housing prices, weighing heavily on the Nordic country’s economy, Nordea Bank Abp said in an outlook report.
The housing market in Sweden has become one of the clearest examples globally of what may happen to inflated prices when interest rates rise rapidly. After falling about 15%, the market appears to have stabilized somewhat in the beginning of this year, but the ripple effects are already evident in the building market as new-home construction is coming to a near standstill.