Construction is best in the north

Construction investments will decrease by five per cent in Sweden in 2024. Norrbotten is one of only two counties where construction investments will instead increase.

In the northernmost county of Norrbotten, construction investments will increase by 11% in 2024. Construction investments will also increase in Kalmar County, by 5%.

This is according to a forecast from the industry organisation Byggföretagen. The forecast applies to investments in housing, premises and facilities. According to Byggföretagen, total construction investments in 2024 will amount to SEK 615 billion.

"Housing construction in northern Sweden is slowing down, but overall the economy is still strongest in Norrbotten. The weakest development is in Uppsala, Södermanland and Kronoberg," says Emil Flodin, analyst at Byggföretagen.

The green transition is driving investment in premises and energy, while the need for more capacity for passenger and freight traffic is favouring investment in railways.

"When housing construction also takes off, Sweden's entire growth will take off. Then we can create even greater scope for reform to meet the needs associated with climate adaptation and increased preparedness," says Catharina Elmsäter-Svärd, CEO of Byggföretagen.

The Swedish construction federation believes that construction investments will take off in 2025. Then all counties, except Jönköping and Kronoberg, are expected to see an increase in construction investments. The forecast shows an increase from 25,600 housing starts in 2024 to 30,000 in 2025.

Lennart Håkansson

editor@northswedenbusiness.com