Plots for pennies: Sweden's lakeside town spurs housing boom
The town of Götene in Sweden is selling plots for a symbolic 1 krona, which is about 10 cents CAD. The program started last month and is extremely popular. Buyers only need to meet one condition.
The location might tempt people to participate in the program. The town of Götene is situated on the shores of Lake Vänern, the largest lake not only in Sweden but also in Scandinavia and the entire European Union (EU).
New program in Sweden. Selling plots for next to nothing
CNN reports that around 18,000 people live in the Götene region—just under 5,000 in the town and 13,000 in the municipality. However, due to the new program, this number could soon increase.
29 plots have been put up for sale in these areas (in northern Sweden, about 300 km from Stockholm). Prices start at 1 krona per square metre (about 10 cents CAD). Buyers can build year-round or vacation homes on this terrain.
According to CNN's calculations, building a house on a purchased plot usually costs around 3-4 million kronor, or between 260,000 and 380,000 CAD. Meanwhile, the plots typically cost about 500,000 kronor (about 48,000 CAD).
The program launched last month is open to everyone – you don’t have to be a resident of Sweden or declare a permanent residence in Götene. There is only one condition – the buyer must start building a house within two years of purchasing the plot.
Plots for 10 cents in Sweden are just the beginning?
"We have received thousands of applications," admitted Mayor Johan Månsson. Due to the high interest, the bidding process has been halted until early August.
As he explained, the program was launched because of the accumulation of several unfavourable factors. The main reason is the economic slowdown and the decline in rural population. The housing market is additionally in weaker condition due to high interest rates and a slight recession. Therefore, we wanted to give a boost and stimulate the market a bit.
The mayor emphasized that in the future, the town might introduce a program similar to the "1 euro houses" in Italy. The uncertainty about this idea stems from the fact that although there is still a lot of available land, an analysis needs to be conducted to calculate how many plots can be offered.
Italy has long been fighting the depopulation of towns by offering cheap houses. In December 2023, the authorities of the town of Pratola Peligna in the province of L’Aquila in the Abruzzo region decided to take this step. Currently, about 7,000 people live there.
Fifteen abandoned buildings were put up for sale. Potential buyers of the 1 euro houses had to meet several conditions, including signing a contract with the authorities within two months and presenting a renovation plan that had to be completed within four years.
