The real estate industry is booming in the Almedalen
On "The Extremely Boring People's Variation of Way Out West".
I was told, by an unidentified radio personality, that it was also called when I was walking through Österport in Visby on Wednesday. Almedals week - this super meeting, this super year, a little exciting it must be anyway?
Among the 3308 events that Almedals Week offers, I chose to excite eyes and ears a little extra for some of those who touched on the real estate industry. And there was a considerable amount of conversation, seminars and mingling offered in the particular building and real estate. According to the more experienced visitors I spoke with, the focus on this industry has steadily increased in recent years during the Almedals week.
There were lectures and discussions on divestments in public utility, urban planning, and the importance of the housing market as a driving force for global talent. But there were two general topics that stood out a little extra: the renovation of the million project and the start shot for mass production of new housing.
That the renovation of properties built in the 60s and 70s is one extensive history there is no doubt; in many cases, the needs are urgent. In the Almedalen it became clear how the two political blocs think that the financing of the million project equipment should go to; The Alliance believes that the cost should be borne directly by property owners and tenants living in renovated housing, while the red-green speaks of a state subsidy.
During the week, the Alliance promised to construct 100,000 new homes and accompanied this with a proposal for taxation of commercial real estate in attractive regions. The Red Greens basically support the proposal for a significantly increased housing construction, while at the same time sneaking in on proposals for increased corporate tax and limited opportunity for interest deductions. Despite differing views on taxation, the real estate industry can expect a significant increase in demand for the construction of new housing, regardless of the color of the upcoming political regime. The mentioned regulations, which many consider to be difficult and extend construction processes, were mentioned in some contexts. However, without any direct deep dives regarding solutions and new proposals ...
After a couple of days in Almedalen, I find that politicians, interest groups, and players in the market agree that the real estate industry is meeting an exciting time, with major challenges, opportunities and changes - both in the short and the long term. Add to this the Riksbank's "shock reduction" of the interest rate, which cannot be seen as anything other than a fit for politics - "now it is up to you to deal with the housing bubble!"
Several crucial factors will become clear after Election Day on September 14. At the same time, it is impossible to sit back and wait for directives from a political point of view. Meanwhile, the industry players need to prepare at home, review the internal strengths and weaknesses.
Companies in the real estate industry now have to ask themselves: What are our challenges and opportunities in an expansive real estate industry? Do we have the conditions to flourish?
Finally: Almedalen is not at all the boring Way Out West - it was super exciting and super interesting. If you are lucky you get to see Carl Bildt or Åsa Romson dance.