According to the Prognoscentrum's new economic report, total investment this year amounts to SEK 353 billion, a decrease of 6.7 per cent compared to last year. In 2025 and 2026, total construction investment will grow as a result of a recovery in residential construction.

After years of setbacks, residential construction is now showing signs of recovery, according to the Forecast Centre. Investment appetite and demand have returned as the fight against inflation has ended and interest rates have started to fall. The recovery is expected to be gradual over the forecast period 2024-2026 as household housing costs fall.

- We are now seeing signs of a recovery in residential construction after the sharp falls of recent years. Household demand and optimism are increasing, but a continued high level of costs and higher construction costs are preventing a faster upturn,’ says Ludvig Uggla, an analyst at the Forecast Centre.

The forecast for new construction is revised downwards slightly, although the levels remain high.
Newly received data show that the development of newly built premises this year will be somewhat weaker than previously estimated by the Forecast Centre. However, as a result of the major green industrial investments and high demand in the country's regions and municipalities, investment is expected to remain at high levels. According to the new assessment, investment this year is expected to amount to SEK 100 billion, according to the Forecast Centre.

The recovery in housing renovation and maintenance (RMI) is expected to take place with a slightly longer delay compared to the previous forecast. The Forecast Centre believes that the willingness to invest will increase when the effects of lower housing costs start to be felt by households. Next year, household RMI investments are expected to increase by 5.6 per cent.

RMI investments in non-residential buildings decreased last year and are expected to continue to shrink slightly this year. In 2025, there will be an increase of 2.2%, and positive growth is also expected in 2026, driven mainly by the need to renovate schools and healthcare buildings, as well as increased demand for energy renovation, in line with the EU Energy Efficiency Directive.

Source: byggvarlden.se