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PRESENTED BY INVEST STOCKHOLM

The tech hub that offers work-life balance as well as digital innovation

Cities today don’t just compete on raw economics. They’re also in competition to show themselves as leaders in sustainability, digitalisation and quality of life.

The tech hub that offers work-life balance as well as digital innovation
Photo: Getty Images

For many talented individuals with an international mindset, such factors matter more than a higher salary or other financial incentives.

A recent report on talent from Invest Stockholm suggests the Covid-19 pandemic could see such people “shunning ‘megacities’” in favour of sustainable cities that match their lifestyle values. 

Here, we look at how Stockholm compares internationally in terms of sustainability, as a tech hub, in broader digitalisation, and in the standard of English.

A city that protects the planet

Stockholm has long had a reputation for sustainability – and was named the first European Green Capital by the European Commission back in 2010. So, what about now with major cities everywhere eager to prove their green credentials? 

In the latest Arcadis Sustainable Cities Index (SCI), designed to look at sustainability “from the perspective of the citizen”, Stockholm ranked second to London among 100 global cities. The rankings are built on three pillars – people, planet and profit – which closely align with the UN Sustainable Development Goals.

Stockholm ranked number one globally on the ‘planet’ pillar, thanks to investment in sustainable infrastructure (including measures to promote cycling), low emissions and good air quality. This is no surprise to Irish-born Elaina O’Shea, who chose to move to Stockholm partly due to her desire “for an active, outdoor lifestyle”.

“Everywhere is reachable by bike, tap water tastes great, the air is so clean and housing is dry and warm,” she says. “As a cyclist or runner, I can go anywhere without choking on car fumes. The mentality in business also prioritises reducing waste.”

Photo: Elaina O’Shea

Stockholm also comes in the top ten of the Arcadis Sustainable Cities Mobility Index for urban transport. The city was one of the pioneers in introducing a congestion charge to reduce road traffic at peak times and is currently expanding its metro system.

Heating and hot water in apartments comes mainly from district heating with much of the power generated from biofuel and household waste. 

A city of unicorns … where people come first

When you think of start-ups and unicorn companies, you probably think firstly of Silicon Valley. But did you know that Stockholm produces more billion-dollar companies per capita than any region except the Californian tech hub?

Looking for new career or business opportunities? Get free advice on how to get connected to Stockholm

Spotify and Skype are perhaps the biggest names to emerge from the Swedish capital, while gaming giants like King and Mojang (the developer behind Minecraft) have also made their mark internationally.

O’Shea has previously lived in London and Dublin but says when she decided to go into the tech industry, she knew she wanted to make Stockholm her home.

“Ireland is thought of as a tech hub but Stockholm is savvier,” says O’Shea, who now works in software as a service (SaaS). “The flat hierarchies in Stockholm mean things happen faster when people have great ideas.”

Photo: Ting Liu

Ting Liu, a software engineer originally from China, moved from Berlin to Stockholm just over a year ago. She has also lived in South Korea and Spain.

Like O’Shea, she finds Stockholm to be highly efficient while still encouraging real work-life balance. “In South Korea, the work ethic is insane and leaves you exhausted,” she says.  “There are lots of tech opportunities in Asia. But money isn’t everything and I prefer to have a life.” 

In fact, her salary isn’t much different to what she earned in Seoul, she adds, but in Stockholm “you feel respected as a human being”.

Digital society: helping you get things done

International residents are used to dealing with bureaucracy. But it doesn’t mean they want to tolerate it being unnecessarily – or tortuously – slow. In Stockholm, there’s not much to fear with the city offering residents more than 100 e-services across many areas.

The European Commission’s Digital Economy and Society Index (DESI) ranks Sweden as one of the EU leaders in digitalisation; it comes second behind only Finland and well ahead of major economies like the UK, Germany and France.

Residents and businesses benefit from fast broadband throughout Stockholm and residents have a huge choice of fast payment options, as Sweden leads the race to become the first almost cashless society.

Liu says getting a German work permit required lots of paperwork and took almost three months, she says, whereas in Stockholm she got one in under a week.

“In Berlin, you do lots of things by sending letters and you still rely heavily on cash. In Stockholm, you can always pay by card and lots more things can be done online. You don’t need to make an appointment and visit the registration office just to change your address.” 

It’s easy to get by in English

International residents of Stockholm find the level of English in the city also makes their lives far easier. Liu says she hasn’t started seriously studying Swedish due to the pandemic and her preference for face-to-face learning. 

“Everyone here, including the cashiers in the supermarket, speaks fluent English and that’s a big advantage,” she says. “In Germany, I didn’t speak the language and quite often I couldn’t communicate with people outside of work.”

Sweden has long been one of the worldwide leaders for English as a second language and recently placed fourth globally in the English Proficiency Index.

Want new opportunities and a better quality of life? Get free, tailor-made advice on business in Stockholm – and follow these links for Stockholm’s Talent Guide and Entrepreneur’s Guide.

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.

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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.

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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.”

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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.”

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