SHARE
COPY LINK

PROPERTY

Foreign exchange students lose dibs on earmarked apartments in Sweden

Swedish universities predict an increase in domestic students next semester, but a decrease in new foreign students. And the competition for housing is expected to be fierce.

Foreign exchange students lose dibs on earmarked apartments in Sweden
The coronavirus crisis may make it harder for foreign students to move to Sweden. Photo: Henrik Montgomery/TT

Another 1,300 university places have been allocated by the government to students in fields with a skills shortage, such as teaching and nursing courses, in addition to a previously announced 1,300 new places.

But the decision means that the competition for accommodation may be even tougher than normal.

In 2018, 410,228 students were registered at Swedish universities, around 4,700 more than the previous year. There are 96,990 student rooms or student apartments available all across Sweden.

Around 5,000 rooms or apartments are usually earmarked for foreign exchange students and guest researchers. But according to a new government decision, universities will be able to rent these out to any students next semester, to compensate for an expected decrease in the number of international students.

“If universities had been forced to cancel apartment contracts it would have damaged internationalisation in the long run. With this solution we avoid a situation in autumn where student apartments are left empty when there is a shortage of student housing in most university towns,” said Matilda Ernkrans, minister for higher education and research, in a statement.

In the 2018-2019 academic year more than one in four new students in Sweden were foreign students. That year Swedish universities admitted 23,800 new students from abroad, of which 12,800 were exchange students.

That number is expected to drop this autumn, as a result of coronavirus restrictions on overseas travel.

Until this week an entry ban has made it impossible for new foreign students from outside the EU to travel directly to Sweden, and distance teaching at many universities makes it hard for non-EU students to keep their student permit.

According to Studentbostadsföretagen, an industry organisation for student accommodation in Sweden, the number of foreign exchange students and guest researchers may drop by anything from 30 to 70 percent. It is still unclear how many foreigners who have applied to study in Sweden will actually be able to enroll.

“Many have applied, but we'll have to see if they turn up in August. If there's distance teaching this coming autumn, foreign students may have a hard time with their residence permit, and there may be travel restrictions,” Stina Olén, chief executive of Studentbostadsföretagen, told Swedish news agency TT. 

The new rules for foreign exchange student accommodation will apply for a year from August 1st.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.
For members

PROPERTY

Should you buy a home in Sweden this summer?

Considering the fickle trends in the Swedish housing market, prospective homebuyers might find themselves at a crossroads this summer.

Should you buy a home in Sweden this summer?

After a period of falling prices driven by increased interest rates, the Swedish housing market is seeing a rebound, particularly in the biggest cities.

However, it’s also taking longer to finalise home sales.

READ MORE:

Recent data from Swedish property listings site Hemnet indicates that while home sales – and housing prices – are on the rise, the time to complete transactions has notably increased.

For instance, the average sale time for an apartment in Sweden increased to 27 days in the first half of the year, up from 22 days during the same period last year. Similarly, houses now take an average of 31 days to sell, compared to 30 days previously.

The slowest market is in the Gävleborg region, where it takes an average of 44 days to sell a home. The fastest transactions occur in Stockholm, with apartments selling in just 16 days and detached homes in 23 days.

This variation in market activity across the country calls for a deeper look into where the best opportunities might lie for homebuyers this summer.

Renewed market confidence in Sweden’s biggest cities

The confidence in the Swedish property market is on its way up in Stockholm, Gothenburg, and Malmö, Erik Holmberg, a market analyst at Hemnet, told The Local.

“I would say that we have seen a weaker market in the last couple of years, almost everywhere in the country, since the Swedish central bank started to increase the interest policy rate, which affected the market a lot,” he said.

“But in the last half of the year or rather in the last year, the confidence has come back in bigger cities – in Stockholm, Gothenburg, Malmö… When we look at price developments last year, in three of Sweden’s biggest cities, we see prices increasing again.”

However, the analyst warned that the opposite is currently true in other areas of the country, which have seen a continued decrease in market activity and flatter developments in the same time interval.

A new trend emerging in Stockholm?

As Hemnet’s analyst explained, in Sweden, housing market trends usually start in Stockholm, when the market begins to change, causing a ripple effect.

“And that’s what we have seen. Now, market activity and prices are increasing again in the bigger cities. Usually, when the market changes, other areas in the country follow, and that could be the case now,” said Holmberg.

“When the rates and inflation situation become clearer, other parts of the country might follow the market in the big cities. Our main scenario is that we will see this spread,” he said, adding that prices in Stockholm have picked up quite fast in the last year but that the demand is still affected by the high interest rates.

“I wouldn’t be surprised if we saw swift price developments in some areas with the highest demand, such as city centres.”

The effect on the rental market

Another aspect to consider is the rental market, which could see significant changes in the short to mid-term.

Holmberg pointed out that properties which fail to sell might enter the rental market.

“What we’ve seen is that it’s harder to sell properties today, so, probably, more people who own homes and can’t sell them will put these unsold homes on the market for a while. This could affect the supply of apartments for rent and, in turn, prices,” the analyst said.

INTERVIEW:

What different types of homebuyers should know

For buyers, the current market presents a mixed bag.

“In Sweden, we often talk of having a seller’s or buyer’s market. Today, it’s good for buyers that they have a lot to choose from; there’s a record-high supply almost everywhere in the country. That means it’s easy to find something,” said Holmberg.

However, he also cautioned that the slow market makes agreeing on terms with sellers challenging, with sales times at record highs.

“Sales take some time in today’s market, and that’s important to understand for both sellers and buyers, especially for homeowners who are changing homes, meaning they’re both buying and selling something; it’s a tough market for them.

“Today, this group often chooses to sell their home before they buy something new. That makes up a big part of record high sales times; we have people waiting for the right bid before moving from the selling to the buying side…” Holmberg said, noting that the market is different compared to two to three years ago when it was “very hot”.

“So, remember that even if prices grow, it’s still a tough or slow market.”

READ MORE:

On the other hand, first-time buyers might find a silver lining in the form of lower prices compared to a couple of years ago, making it a potentially favourable time to enter the Swedish housing market.

“First-time buyers are in another situation, which may be better because the prices are lower than two years ago, of course, and if you’re just buying something, you don’t need to worry about the selling part,” Holmberg told The Local.

“That’s why this could be a good situation to enter the housing market this summer, but even so, despite supply being really high, it could still be tough because many sellers have put down a listed price but don’t necessarily plan to sell at this price.”

SHOW COMMENTS