faners inesten & de market survey
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FLANDERS INVESTMENT & TRADE MARKET SURVEY
INFRASTRUCTURE &
CONSTRUCTION MARKET
IN SWEDEN
Market study
www.flandersinvestmentandtrade.com
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INFRASTRUCTURE &
CONSTRUCTION MARKET IN
SWEDEN The Swedish market and contacts
June 2019
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pagina 2 van 12 Infrastructure & construction market in Sweden
CONTENTS
1. Introduction ................................................................................................................................................................................... 3 2. Infrastructure ................................................................................................................................................................................ 4
2.1 Procurements, tenders, biddings 4 2.2 Sweden harbours and airports 5
3. Construction ................................................................................................................................................................................... 6
3.1 Construction – The two biggest cities 7 3.1.1 Stockholm 7 3.1.2 Gothenburg 8
3.2 Tender – building in Sweden 9 3.3 Main construction companies 10 3.4 Main construction buyers in Sweden 10
3.4.1 Commercial 11 3.4.2 Public 11 3.4.3 Private 12
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Infrastructure & construction market in Sweden pagina 3 van 12
1. INTRODUCTION
One of the most promising markets in Sweden is the construction and infrastructure sector. Between now
and 2030, the country will spend €64 billion on railways, roads and other major projects and build 700,000
new homes and offices. The report is mainly focused on the construction market with a little general
information about the infrastructure market.
In January 2019, a new Ministry of Infrastructure was formed to focus on the development of the Swedish
infrastructure and its long term demands. A plan has been created, named; The Swedish National Transport
plan 2018–2029, which contains approximately €70 billion euros of financed infrastructure projects.
Together with another €70 billion from the regional and local investment plans, it is easy to see why
Sweden’s infrastructure sector is booming.
More than 80% of Swedish municipalities face a shortage of housing. The biggest shortage is in the rental
market. This is mainly due to new, more tighter rules about how much individuals can borrow from banks.
Sweden will have invested over €150 billion on new housing by 2025, resulting in huge opportunities for
the construction market, both internally and externally.
Figure 1, Sweden’s spending on road and rail projects Figure 2, Amount of new houses built
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pagina 4 van 12 Infrastructure & construction market in Sweden
2. INFRASTRUCTURE
Sweden is known for its excellent sustainable
and strong public transport facilities.
Sweden’s ambition is to continue offering
this excellent services and is therefore willing
to spend that much money and effort into
building infrastructure projects, including
operation, maintenance and reinvestment in
state railways. For railways specifically, this is
the largest investment in modern history.
Sweden also plans to invest an estimated
€25 billion in a High Speed Rail to connect
the three largest cities: Stockholm,
Gothenburg and Malmö. The local and
regional investments also contribute for
almost €70 billion to these investments. In
figure 3, you can see some examples of these
local and regional projects.
2.1 PROCUREMENTS, TENDERS, BIDDINGS
There are a number of authorities within transportation. The authorities cooperate with LFV (the LFV Group
- Swedish Airports and Air Navigation Services), the Swedish Maritime Administration and the Swedish
Transport Agency in order to simplify everyday travel by sea, road, air and rail.
Transportstyrelsen, The Swedish Transport Agency prescribes regulation and monitors how it is followed,
grants permission (driver's licenses and certificates), registers change of ownership and manages congestion
and vehicle taxation.
The Swedish Transport Administration is on a national level responsible for budgets, procurements and
biddings. The Swedes really value quality, sustainability and environment and like to include it in all projects.
The procurement process is a very thorough process and the Transport Administration has a budgeted
amount of SEK 50 billion (€4,67 bn) to spend annually for this purpose. PPP (Private-Public Partnerships)
are not offered on national level, but on municipality level.
Sjöfartsverket: The Swedish Maritime Administration is responsible for safety and navigability at sea, as well
as for building, operating and maintaining navigation infrastructure.
Figure 3, Local and regional infrastructure projects
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Infrastructure & construction market in Sweden pagina 5 van 12
To find a transportation agency, have a look at the link below:
https://www.opic.com/org/transportstyrelsen/
To find current public transportation procurements, have a look at the link below:
https://eu.eu-supply.com/ctm/supplier/publictenders?b=TRAFIKVERKET
2.2 SWEDEN HARBOURS AND AIRPORTS
Sweden is a very divers country with big distances between the biggest cities. Therefore, it needs a good
infrastructure with harbours and airports. The biggest harbours in Sweden are:
• Port of Verkeback
• Port of Visby
• Port of Kopmanholmen
• Soraker Harbor
• Port of Uddevalla
• Port of Goteborg (Gothenburg)
Sweden has over 30 airports divided across
whole Sweden, with most of them in the
triangle Stockholm – Gothenburg – Malmö
(figure 4). The busiest airports in Sweden are
Stockholm Arlanda Airport with 26,642,034
passengers, Gothenburg Landvetter Airport
with 6,758,520 passengers and Stockholm
Bromma Airport with 2,535,850 passengers. Figure 4, All airports in Sweden
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pagina 6 van 12 Infrastructure & construction market in Sweden
3. CONSTRUCTION
The construction firms in Sweden are world leading and are using
the most efficient and innovative techniques available. In addition,
they closely work together with research institutes to increase their
efficiency even more. However, the construction market in Sweden
is competitive and consolidating. The financially strong companies
often acquire the financially weaker construction companies,
resulting in a lack of competition. This consolidation trend is also
present in the construction materials segment.
Construction businesses are often highly indebted, especially those
active in the real estate and housing construction segment. Banks
are increasingly reluctant to lend to this subsector, while being
more willing to provide loans to companies active in other
segments. There are four main construction companies in Sweden:
Peab, Skanska, NCC, and JM (figure 5).
Because the Swedish construction companies are keen on
innovation and new materials, there is a potential for foreign
construction companies to collaborate with the Swedish firms
and improve their own offerings. International companies can
also participate in on-going R&D projects at Swedish research
institutes, test and develop building techniques as well as
environmental and sustainable ways of building.
In 2019, demand and margins are expected to remain stable in
some segments like office buildings and civil engineering.
However, the market for building new malls and hotels is
increasingly mature. The residential building subsector shows
signs of decreasing demand, which will have a negative effect on
businesses´ margins. Additionally, increased commodity prices
and high prices for building sites in Sweden have a negative
impact on construction.
Figure 5, Largest construction companies in
Sweden
Figure 6, Construction sector
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Infrastructure & construction market in Sweden pagina 7 van 12
3.1 CONSTRUCTION – THE TWO BIGGEST CITIES
The Swedish housing problem is a big national problem. However, the problem mainly occurs in Sweden’s
two biggest cities; Stockholm and Gothenburg.
3.1.1 Stockholm
The capital of Sweden is the biggest city in Sweden and has the highest population with over 2 million
residents in Stockholm county. More and more people move to the capital and therefore more and more
housing and infrastructure is needed. In figure 7, you can see which big construction and infrastructure
projects are happening right now in Stockholm. Including the Stockholm Bypass project of €2.1 billion, the
Arlanda Airport extension of €1,4 billion and the construction of 230.000 new dwellings, worth €45 billion.
You could say that Stockholm is experiencing a true construction boom. Estimated is that Stockholm needs
to build 700.000 houses in the next decade at prices that keep the homes affordable. In figure 8, you can
see Stockholm’s construction plan for the coming years.
In Stockholm, there is a huge shortage of construction companies. Very often only one construction
company bids on projects, resulting in high prices. This shortage offers huge opportunities for foreign
construction companies, resulting in increasing competition and in the end, affordable prices.
Figure 7, Stockholm’s construction plan
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pagina 8 van 12 Infrastructure & construction market in Sweden
3.1.2 Gothenburg
With a population of almost 600,000 is Gothenburg the second biggest city in Sweden. In Gothenburg as
well, there is a huge housing problem. Estimated is that by 2035, an additional 100.000 residents will have
moved to Gothenburg, resulting in a huge increase in the demand of dwellings. Gothenburg is currently
busy with the biggest urban development project in Scandinavia; Älvstaden – the River City (figure 9). Part
of the project is building 25,000 new homes and 50,000 new offices, a total investment of SEK 250 billion.
In total Gothenburg aims to build 70-80.000 new homes in the city to cover the increase in residents (figure
10).
Just as in Stockholm, there is a shortage of construction companies who bid on projects. This results in
high project prices and dwelling prices because of the lack of competition. This can be a big opportunity
for foreign construction companies who are interested in the Swedish market.
Figure 8, Investments in Stockholm region
Figure 9, Älvstaden – the River City
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Infrastructure & construction market in Sweden pagina 9 van 12
3.2 TENDER – BUILDING IN SWEDEN
The main organisation for the construction in Sweden is Boverket. Requests for tenders for public
procurements are easy to find since all state and municipal procurements must be announced according
to the Public Procurements Act. It is not as easy to get an overview of private procurements.
State and municipal procurements are regulated by the Public Procurements Act, LOU, and must be
published. On the day that a procurement is published, the procurement documents will also be available
electronically. The announcement shall state where these documents are available.
Most common electronic databases where procurements can be published:
• www.sverigebygger.se
• www.e-avrop.com
• www.offentligaupphandlingar.se
• www.opic.se
• www.mercell.se
• www.kommersannons.se
• www.visma.se
There may be other databases and monitoring services. Announcements that are published in one database
are often spread to other databases. It may be difficult to obtain comprehensive monitoring of all requests
for tenders via only one database. It can therefore be a good idea to use several databases and monitoring
services.
Figure 10, Gothenburg’s construction plans
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pagina 10 van 12 Infrastructure & construction market in Sweden
For the construction tendering process, have a look at the link below:
https://www.boverket.se/en/start/building-in-sweden/contractor/tendering-process/
3.3 MAIN CONSTRUCTION COMPANIES
As you can see in figure 5 & 11, Peab, Skanska, NCC, and JM are the largest
construction companies in Sweden. Together, they make up more than
60% of the total construction market in Sweden. Peab AB generated the
highest turnover, reaching nearly 39 billion Swedish kronor. The
construction and civil engineering company is the third largest
construction company in the Nordic countries. On the right, you can
find some general information about the three largest Swedish
construction companies.
3.4 MAIN CONSTRUCTION BUYERS IN SWEDEN
A lot of different parties are active in the construction buyer market; real estate companies, agencies,
renting organizations, private players, etc. Divided into the three categories: Commercial, Public and Private;
below you will find the biggest property buyers (by revenue) in the market (some cover multiple categories);
Peab AB
Margretetorpsvägen 84
SE-269 73 Förslöv
Sweden
CEO (2013): Jesper Goransson
https://www.peab.com/
Skanska
Warfvinges road 25
112 74 Stockholm
Sweden
CEO (2018): Anders Danielsson
https://www.skanska.com/
NCC
Vallgatan 3,
170 67 Solna
Sweden
CEO (2018): Tomas Carlsson
https://www.ncc.se/
Figure 11, Largest construction companies in Sweden (2016)
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Infrastructure & construction market in Sweden pagina 11 van 12
3.4.1 Commercial
L E Lundbergföretagen AB Hovslagargatan 5 B SE-111 48 Stockholm Email: [email protected] Tel: +46 (0)8-4630600 Website: www.lundbergforetagen.se AB Stockholmshem Hornsgatan 128 102 71 Stockholm Email: [email protected] Tel: +46 (0)8-508 39 000 Website: https://www.stockholmshem.se Castellum Östra Hamngatan 16 Gothenburg (Head office) Tel: +46 (0)8-031 60 74 00 Email: [email protected] https://www.castellum.se/
Pandox AB (hotel) Vasagatan 11, 9th floor Stockholm Sweden Tel: +46 8 506 205 50 Email: [email protected] https://www.pandox.se/ Klovern Broadway 4 111 30 Stockholm Tel: +46 10-482 70 00 Email: [email protected] https://www.klovern.se/ Atrium Ljungberg Smedjegatan 2c 131 54 Nacka Email: [email protected] Tel: +46 (0)8-615 89 00 https://www.al.se/
3.4.2 Public
Unibail-Rodamco-Westfield
Mäster Samuelsgatan 20
111 44 Stockholm
Tel: +46 (0)8-586 230 00
https://www.urw.com/en
Riksbyggen
Kungsbron 21, Stockholm
Tel: +46 (0)771-860 860
https://www.riksbyggen.se/
Akademiskahus
Stampgatan 14
411 01 Gothenburg
Tel: +46 (0)31-63 24 00
E-mail: [email protected]
https://www.akademiskahus.se/
Rikshem AB
Vasagatan 52
101 26 Stockholm
Tel: +46 (0)10-70 99 200
https://www.rikshem.se/
SABO
Drottninggatan 29, Stockholm
Tel: +46 (0)8-406 55 00
Email: [email protected]
Ikano Bostad
Landsvägen 52
172 26 Sundbyberg
Tel: +46 (0) 10-330 40 00
E-mail: [email protected]
https://ikanobostad.se/
www.flandersinvestmentandtrade.com
3.4.3 Private
Svenska Bostäder
Vällingbyplan 2 162 12 Vällingby Tel: +46 (0)8-508 370 00
Email: [email protected]
Website: https://www.svenskabostader.se/
AB Familjebostäder
Hammarby Factory Road 67
Stockholm
Tel: +46 (0)8 737 20 00
Email: [email protected]
https://www.familjebostader.com/
Akelius
Rosenlundsgatan 50
100 64 Stockholm
Email: [email protected]
Tel: +46 (0)8 566 130 00
https://www.akelius.com/en
Akelius
Föreningsgatan 15
200 10 Malmö
Email: [email protected]
Tel: +46 40 330 400
https://www.akelius.com/en
Hemfosa
Hästholmsvägen 28
131 02 Nacka
Tel: +46 (0)8-448 04 80 (Stockholm Area)
https://hemfosa.se/
M2 Asset Management
Bredgränd 4
111 30 Stockholm
Email: [email protected]
Tel: +46 (0)10-706 00 00
https://m2assetmanagement.se/
➢ More Real Estate companies
Disclaimer
The information in this publication is provided for background information that should enable you to get a picture of the subject treated in this
document. It is collected with the greatest care based on all data and documentation available at the moment of publication. Thus this publication
was never intended to be the perfect and correct answer to your specific situation. Consequently it can never be considered a legal, financial or
other specialized advice. Flanders Investment & Trade (FIT) accepts no liability for any errors, omissions or incompleteness, and no warranty is given
or responsibility accepted as to the standing of any individual, firm, company or other organization mentioned.
Date of publication: June 2019