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Showing posts from June, 2012

The strange case of real estate and banks

I must apologize from jumping out of the topic of IT and IT services with this post, but maybe there is something to learn from it for everybody. Including IT people. The topic I want to write about is the real estate market and ... how bubbled up it is. Especially the Swedish one.

To start up some facts, links and numbers:

- You can see the average apartment square meter price of different parts of Sweden at www.maklarstatistik.se. For Stor-Stockholm the average price is currently 34 826 kr/m2. That is approx. 3870 euros. The average means that it is something between 22 000 kr/m2 in the outer parts of Stockholm to 61 900 kr/m2 in Östermalm.
- The average netto salary in Sweden was 27 900 kr/m in 2010. It is a bit higher in Stockholm 31 700 kr/m. (But the SCB did not state if this is neto or bruto)
- The price of real estate in Sweden before the financial crisis (january 2008) was on average 18% lower than today. So there was just a slight glitch in the prices and then they continued …