Experts in Stockholm, Sweden are beginning to voice concerns that they may be going into a real estate bubble.

The combination of low interest rates, mortgage interest tax deductions, a strong job market and limited housing stock are pushing Stockholm prices up. The government is considering eliminating the mortgage interest tax deduction and discussing other measures to calm the real estate market and keep people from borrowing too much.
Apartment prices in central Stockholm are averaging about $975 dollars a square foot right now. High end apartments are averaging between $1200 and $1950 a square foot. An average size, three or four bedroom apartment there is about 2150 square foot.
Because Stockholm is built on islands, waterfront homes are quite common close to the city. With the many fjords there is also a great deal of attractive coastline for people to look at.
It is possible to find a small stuga, or cottage, for about $1 million. If you are willing to jump on a ferry or take your own boat out to an island with no car connection, you can find something quite beautiful for half., Mr. Lars Andersson, the chief executive of Sweden Sothebys International Realty said.
In Sweden, Germans are the biggest buyers, followed by Norwegians, American, Russian and Chinese buyers. The Russians have only been common in the last 10 years or so and the Chinese buyers are a quite recent addition.
There are no restrictions on foreign buyers in Sweden, and transaction costs are low. The buyer pays just 1.5 percent in federal transfer taxes, and there are no other transaction costs. Also, there is no buyers broker..one broker represents both parties.