Rent in Stockholm reaches new high, living in a hotel is cheaper

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The Stockholm house market makes newcomers confused.

In Stockholm, it is not possible to go on to a rental website and ring up a landowner to make an offer.

Technically, you should queue up for a flat for up to twenty years, to get a possibility of renting an apartment in a randomly selected area.

Due to a set of price regulating systems dating from earlier years, and a status quo in Swedish residential politics, the whole rental business in the Swedish capital has increasingly gone “dark”, suggesting that your best odds of getting a flat us to depend on family or your connections.

”The waiting list for apartments is growing longer, and as a result the competition, the second-hand market is getting tougher — despite record high average rents,” said Linnéa Aguero, press representative at Blocket, a Swedish housing website.

In 2016, the average price for a studio- and two-room flats in Stockholm increased by 7 and 6 percent, respectively.

This is a point of debate for individuals and firms. Spotify has pressed the matter openly with Swedish authorities, to make Stockholm, one of Europe’s key tech towns, more engaging to foreigners.

The average studio apartment is now valued at almost 8,000 kronor, while a more central place easily exceeds 10,000 ($1100) per month and could stretch to 15,000 ($1650) in the most attractive neighbourhoods.

Because of this, the rental website Bostad Direkt has begun offering low-cost living in a hotel in the neighbourhood of Bromma, for less than 9,000 kronor per month, says Breakit and Dagens Nyheter.

“As there are not sufficient numbers of apartments, we realized that we had to think differently and find alternative solutions. Offering a hotel room as a temporary accommodation for a fair price felt like a reasonable first step to meet the growing demand,” stated Victor Börjesson, CEO at Bostad Direkt, to Breakit.

“We currently have numerous IT-consultants using the hotel rooms as temporary lodging, while they keep searching for a flat,” Börjesson continues.

A twin room is valued at 10 500 kronor per month, and a family apartment is at 15 500 kronor per month. And there is no difficulty filling the unoccupied rooms.

”We have a few double rooms left. The single rooms are the most popular ones, they are booked immediately,” said site manager Marée Persson Anthony to DN.