Commercial rents, the so-called indexed rents, are governed by inflation, i.e. price increases. In 2024, the increase will be 6.5 per cent. In 2023, the increase was almost 11 per cent.
This, together with the fact that people in general have had a worse economy due to inflation, means that the trade association, the Swedish Trade Federation, fears the worst.
"Now we are in a situation where we will have rent increases of more than 18 percent in a recession. I think we will see many more stores that have to throw in the towel," says Martin Kits, head of economic policy at the Swedish Trade Federation.
Inflation-determined rents
Property owners, on the other hand, believe that rents will be evened out over time with today's inflation-determined rents.
"It can be said that rent increases have been quite low for many years. But now, as inflation has soared, it has increased," says Anders Holmestig, CEO of the Swedish Property Federation.
In the video above, you can see store owner Katarina Malmgren, in Stockholm's Old Town, who is dejected about the financial future if her landlord doesn't lower the rent demands.