BTR Real Estate and Rental Portfolios - Stockholm and Sweden
40% of all new rental housing in Stockholm is built in BTR format. Design is the variable that determines rent.
The BTR segment in Sweden is growing rapidly. Institutional real estate owners, funds and housing developers are building and acquiring rental portfolios with long-term returns in mind. In a market where tenants have choice, the design of the property is a direct variable for rental income, vacancy rate and property value. We design BTR properties and rental portfolios with that perspective: the design should perform on all three parameters, not just look good on rendering.
The real problem
A BTR property without differentiated design competes on rent alone. And rent always has a ceiling.
Tenants choose based on perceived quality. A well-designed property justifies a rent 15-20% above the market average, retains tenants longer and keeps its property value in the long term.
Renting below potential
Without design differentiation, the property cannot maintain a rent above the market average. The investment in design provides direct and measurable returns in the form of the rent the market will accept.
High tenant turnover
Each tenant that does not renew means 1-3 months of lost rent in vacancy and recruitment costs. Designs that create genuinely satisfied tenants consistently reduce that turnover.
Common areas without yield
In BTR, common areas are a selling point. A well-designed coworking corner, gym or roof terrace justifies the rent and reduces vacancy. Poorly implemented, they are a cost with no return.
Materials that do not hold up to turnover
A BTR property should withstand tenant turnover for 15-20 years. Design that does not take sustainability and maintenance costs into account results in ongoing costs that erode returns.
The process
How we work
1.
The meeting
We analyze the tenant profile, the target rent, the competition in the area and the technical conditions of the property. The design is calibrated to justify the target rent.
2.
Designing
For multi-property portfolios, we develop a scalable design system that can be replicated with consistency between buildings. Property identity, not unit interior design. 3D visualization before decision.
3.
The productions
Construction documents, choice of materials with sustainability and maintenance perspective, FF&E list with price options. Locked budget before construction starts.
4.
Installations
Construction management and final inspection. The property is delivered ready for photography and ready to receive the first tenant.
40%
of all new rental housing in Stockholm is now built in BTR format by institutional players according to Savills Nordic 2024
15–20%
higher rent in well-designed BTR properties compared to generic alternatives in the same market and price level
3 months
lost rental income per vacant unit when changing tenants - a cost that well-designed properties consistently reduce
20 years
average lifespan of BTR investments in the Nordics - requiring design and materials that last for that time horizon
Contact us
Do you have a BTR property or rental portfolio under development?
Please tell us the number of units, location and target rent. We will get back to you within 24 hours with a direct assessment.
- Without connections
- First consultation free of charge
- Response within 24 hours