In today's world of globalization and mobility, choosing the right place to live or invest in real estate has become increasingly important. Among the many European cities, Basel and Stockholm stand out. Basel – it is a cultural gem of Switzerland with a rich history and developed industry, and Stockholm is attractive as the capital of Sweden, with its unique island location and high quality of life. Both cities are not only culturally and economically significant, but also represent different real estate market models that can offer unique opportunities for local residents and foreign investors. In this review we will look at the dynamics of prices for renting and purchasing housing, analyze rental yield and mortgage lending terms. This will allow not only to see a picture of the current state of these markets, but also to identify trends, which can be useful when making decisions about buying or renting real estate in these prestigious locations.
Basel: housing costs in the front row at Eurovision 2025
Basel – a city in northwestern Switzerland, which is the capital of the German-speaking semi-canton of Basel-Stadt. With a population of 173,247 people, it is the third largest in the country. Basel is known as an important center for the chemical and pharmaceutical industries, with the headquarters of companies such as Novartis and Hoffmann–La Roche, as well as international banking institutions. The cultural side of the city is also impressive, with over forty museums including the Art Museum, which is the oldest public art museum in the world, founded in 1661. Basel was chosen as the official host of Eurovision 2025 in August 2024, so it won't be long before it's back on your radar.
The cost of renting one-room apartments can only be compared with prices in Toronto:
- in the center – 1,700 &euro/month;
- in surrounding areas – 1,250 &euro/month.
Rental prices for three-room apartments are even more expensive:
- in the center – 3,170 €/month;
- in surrounding areas – 2,300 &euro/month.
Basel is also attractive to real estate investors. The average cost of purchasing a one-room apartment in the center is 16,000 €/m², and in other areas it is 13,800 €/m². With an average after-tax salary of €7,300, residents can comfortably manage their housing costs. The 20-year fixed mortgage rate is 2.66%, which is comparatively favorable for long-term investments. However, rental yields in Basel are only 2.36%, indicating a relatively low level of return on investment in residential property compared to other global markets.
Prices in the capital of the most peaceful country
Stockholm – the capital and largest city of Sweden, located on the channels connecting Lake Mälaren with the Baltic Sea. The city is unique in that it is located on 14 islands. Since the 13th century, Stockholm has been the country's main economic center. The main residence of the Swedish king is located here, the government and parliament work here. The population of Stockholm exceeds 981 thousand people, which makes it not only the political center, but also the most populated center of Sweden.
Rental prices for one-room apartments can be compared with those previously recorded in Lisbon, only there they refer to much larger sentences:
- in the center – 1,240 &euro/month;
- in surrounding areas – 760 &euro/month.
Prices for renting three-room apartments:
- in the center – 2,049 €/month;
- in surrounding areas – 1.345 &euro/month.
The Stockholm real estate market shows high prices for the purchase of housing, especially in the city center, where the cost of a one-room apartment can reach 8,600 &euro/m². In the suburbs the price drops to 4.515 &euro/m². The average salary after taxes is €3,570, which makes the purchase of real estate affordable for a large part of the population, despite the high cost. The fixed mortgage rate for 20 years is 3.56%, and rental yield – about 3.03%. These factors make Stockholm more attractive for real estate investment compared to Basel. Although the interest rate on the mortgage is higher, the income from the rental of real estate will compensate for the losses and will allow you to quickly return the invested funds.