How Stockholm’s Rental Market Compares to Six Major European Cities
How does the rental market in Stockholm differ from other major European cities? This is an important question for anyone considering renting out their property—especially in sought-after districts like Östermalm, Vasastan, Södermalm, or Kungsholmen. A report by Fastighetsägarna compares Stockholm’s rental market with five other capitals: Copenhagen, Helsinki, Berlin, Vienna, and London. Below is a summary of how these systems operate and what Sweden could learn from them.
Stockholm – Highly Regulated with Long Queues
Stockholm has one of the most regulated rental markets in Europe. Rent levels are set through collective negotiations, known as the “bruksvärde” system, and this often results in rents below market value. The consequence is extremely long waiting times for first-hand rental contracts, particularly in popular areas like Östermalm and Vasastan.
For property owners in inner-city neighborhoods, the private subletting market is often the only realistic way to meet housing demand. Many tenants actively seek rentals in districts like Norrmalm, Södermalm, and Kungsholmen, where supply is scarce and demand high.
Copenhagen – Mixed Regulation Based on Construction Year
Denmark employs a hybrid model. Older properties are subject to strict rent controls, while newly built homes can be let at market rates. This gives landlords and tenants more freedom in new developments, but the complexity of dual regulation can create inconsistencies and uncertainty.
Helsinki – Subsidized and Mixed System
Finland’s rental model is characterized by a large share of state-subsidized housing through the Arava system. Rent controls apply to public housing, while the private rental sector follows more market-based pricing. The model supports vulnerable populations, but demand remains high in central Helsinki.
Berlin – From Low Rents to a Pressured Market
Berlin has historically had low rent levels due to strict regulation and a large rental stock. However, recent population growth and gentrification have rapidly driven prices up. A 2020 attempt to introduce a rent cap (Mietendeckel) was overturned in court, leaving the market in a state of legal and economic flux.
Vienna – Europe’s Most Balanced Rental Market
Vienna is often cited as a model for stable and equitable housing. Over 60% of the population lives in subsidized or municipally-owned housing. Rents remain moderate and access to housing is inclusive. This is the result of long-term urban planning and public investment in housing, providing a level of security rarely found elsewhere.
London – Flexible but Insecure
The UK’s rental market is largely deregulated, with London operating almost entirely on market terms. While this allows for high mobility and flexibility, it also leads to high rents and insecure tenancy conditions. Tenants often face short leases, steep increases, and minimal protections.
What Can Stockholm and Sweden Learn?
At Victory Stockholm, we observe daily how the demand for safe, flexible rental solutions is rising—especially in central districts like Östermalm, Södermalm, and Vasastan. The international examples show that clear legal frameworks, long-term strategies, and digitalized approval processes can foster a healthier rental market.
Key takeaways for Sweden:
● Clearer laws for private subletting of tenant-owned homes
● Digital systems for rental permit applications
● Tax incentives and support for both short- and long-term rentals
Need Help Renting Out in Stockholm?
We specialize in secure and legal subletting throughout central Stockholm—from Östermalm to Södermalm, Vasastan to Kungsholmen. Whether you’re subletting your apartment for a few months or need a longer solution, we manage everything from tenant screening to contracts and key handover.