Business area Project Development
Business area Project Development, which comprises Housing Development and Property Development, develops sustainable and vibrant urban environments with residential, commercial and public property.
The business area Project Development is responsible for the Group’s property acquisitions and divestitures as well as project development which generates contract work for the other business areas. Project Development works through wholly owned companies or in collaboration with other partners in joint ventures.
Housing Development offers a broad range of housing forms including apartment buildings with tenant-owner apartments, condominiums and apartments for rent.
Property Development develops office buildings, premises and sometimes entire city districts in collaboration with municipalities and other partners. Operations are primarily concentrated to the big city areas throughout the Nordic region.
Net sales and profit
Net sales in Project Development contracted during first quarter 2025 and amounted to SEK 991 million (1,055). The decrease is attributable to Housing Development. Operating profit amounted to SEK 83 million (246) and the operating margin was 8.4 percent (23.3).
Capital employed in Project Development at the end of the period amounted to SEK 18,435 million (18,334).
Capital employed
| MSEK | Mar 31 2025 | Mar 31 2024 | Dec 31 2024 | |
| Mkr | 31 mar 2025 | 31 mar 2024 | 31 dec 2024 | |
| Operations property | Driftsfastigheter | 33 | 145 | 34 |
| Investment property | Förvaltningsfastigheter | 35 | 36 | 36 |
| Project and development property | Projekt- och exploateringsfastigheter | 16,937 | 15,496 | 17,017 |
| of which housing development rights | varav bostadsbyggrätter | 8,869 | 8,793 | 9,344 |
| of which commercial development rights | varav kommersiella byggrätter | 1,682 | 960 | 1,671 |
| of which ongoing housing projects | varav pågående bostadsprojekt | 2,832 | 3,414 | 2,740 |
| of which ongoing commercial projects | varav pågående kommersiella projekt | 160 | 614 | 115 |
| of which completed and repurchased homes | varav färdigställda och återköpta bostäder | 2,155 | 1,679 | 1,895 |
| of which completed commercial property | varav färdigställda kommersiella fastigheter | 1,239 | 36 | 1,252 |
| Shares in joint ventures | Andelar i joint ventures | 1,619 | 2,362 | 2,880 |
| Loans to joint ventures | Utlåning till joint ventures | 491 | 1,434 | 484 |
| Working capital and other | Rörelsekapital och övrigt | -680 | -1,139 | -684 |
| Total | Summa | 18,435 | 18,334 | 19,767 |
| of which Property Development | varav Fastighetsutveckling | 5,015 | 4,590 | 6,165 |
| of which Housing Development | varav Bostadsutveckling | 13,420 | 13,744 | 13,602 |
Key ratios
| Jan-Mar 2025 | Jan-Mar 2024 | Apr 2024- Mar 2025 | Jan-Dec 2024 | ||
| Jan-mar 2025 | Jan-mar 2024 | Apr 2024- mar 2025 | Jan-dec 2024 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 991 | 1,055 | 4,206 | 4,270 |
| of which Property Development | varav Fastighetsutveckling | 57 | 23 | 720 | 686 |
| of which Housing Development | varav Bostadsutveckling | 934 | 1,032 | 3,486 | 3,584 |
| Operating profit, MSEK | Rörelseresultat, Mkr | 83 | 246 | 565 | 728 |
| of which Property Development | varav Fastighetsutveckling | 49 | 261 | 611 | 823 |
| of which Housing Development | varav Bostadsutveckling | 34 | -15 | -46 | -95 |
| Operating margin, % | Rörelsemarginal, % | 8.4 | 23.3 | 13.4 | 17.0 |
| of which Property Development | varav Fastighetsutveckling | 86.0 | 1,134.8 | 84.9 | 120.0 |
| of which Housing Development | varav Bostadsutveckling | 3.6 | -1.5 | -1.3 | -2.7 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 18,435 | 18,334 | 18,435 | 19,767 |
| Orders received, MSEK | Orderingång, Mkr | 1,276 | 627 | 2,862 | 2,213 |
| Order backlog, MSEK | Orderstock, Mkr | 1,975 | 1,709 | 1,975 | 1,536 |
| Operating cash flow, MSEK | Operativt kassaflöde, Mkr | 269 | 151 | 540 | 422 |
| Average number of employees | Medeltal antal anställda | 131 | 182 | 142 | 155 |
Housing Development
The weak demand on the Nordic housing market in recent years is clearly noticeable in Housing Development. Net sales in the first quarter 2025 amounted to SEK 934 million (1,032). The low net sales are due to few production starts and few ongoing housing projects of tenant-owner apartments/condominiums. Operating profit was SEK 34 million (-15) and the operating margin was 3.6 percent (-1.5). The operating margin for the latest rolling 12-month period was -1.3 percent compared to -2.7 percent for the full year 2024.
As of 2025 our own housing development projects are divided into three categories: Tenant-owner apartments/condominiums where net sales and profit in segment reporting are successively reported as the projects are completed. Orders received and order backlog are also reported for this type of property. Rental apartments, which are built on our own balance sheet and where net sales and profit are reported at one point in time when Peab sells the property to an external party. Homes on our own balance sheet are projects that are production-started and built on our own balance sheet and can then be converted into tenant-owner apartments/condominiums or sold as rental apartments. Net sales and profit are reported first when the housing project is reclassified either as tenant-owner apartments/condominiums and then successively reported as the project is completed, or sold and turned over as rental apartments.
Production started on a total of 523 (137) own developed homes during the quarter. Of these, 336 (137) were tenant-owner apartments/condominiums, of which 40 were converted from homes on our own balance sheet. Two of the housing projects are located in Stockholm, one on Kvarnholmen in Nacka and one in Råsunda in Solna. This demonstrates that it is possible to start tenant-owner housing projects in unique locations. Production started on 187 (-) homes as new housing developments on our own balance sheet. The number of sold homes during the quarter was 272 (305), of which 226 (166) were tenant-owner apartments/condominiums and 46 (-) were homes on our own balance sheet under production. In the first quarter last year 139 homes were sold in rental apartment projects as well.
The total number of homes in production at the end of the period was 1,910 (2,810), of which 1,207 (1,866) were tenant-owner apartments/condominiums, 80 (320) were homes in rental apartment projects and 623 (624) were homes on our own balance sheet. At the end of the period the sales rate for the total number of homes in production was 35 percent (45). The sales rate of tenant-owner apartments/condominiums was 43 percent (61). The total number of completed and repurchased homes was 678 (479), most of which were in Sweden.
Sales of our own housing developments continued to be low during the quarter, even though we are selling at an even pace. The trend that sales opportunities increase as the project approaches completion is continuing and we are therefore continuing to work on the strategy of starting more projects on our own balance sheet. We will then convert them into tenant-owner apartments/condominiums, which entails more tied-up capital and deferred effects on profits compared with our traditional method of advance sales before production starts of our own development projects, or sell them as rental apartments.
There is an underlying need for new housing although aspects like high construction costs and downward revised forecasts regarding population growth make it harder to assess demand in the medium-term. As far as Peab is concerned we have a well-dimensioned development rights portfolio in attractive locations and in anticipation of market recovery we are further developing and preparing projects for start-ups in the future.
Capital employed decreased and amounted to SEK 13,420 million (13,744) at the end of the period.
Net sales
per geographic market, rolling 12 month
Number of started-up homes
| Number | Jan-Mar 2025 | Jan-Mar 2024 | Apr 2024-Mar 2025 | Jan-Dec 2024 | |
| Antal | Jan-mar 2025 | Jan-mar 2024 | Apr 2024-mar 2025 | Jan-dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 336 | 137 | 856 | 657 |
| – of which converted from homes on our own balance sheet | – varav konvertering från bostäder i egen balansräkning | 40 | – | 249 | 209 |
| Rentals | Hyresrätter | – | – | – | – |
| Homes on our own balance sheet | Bostäder i egen balansräkning | 187 | – | – | -187 |
| – of which converted to tenant-owner apartments/condominiums | – varav konvertering till bostadsrätter/ägarlägenheter | -40 | – | -249 | -209 |
| Total number of homes | Totalt antal bostäder | 523 | 137 | 856 | 470 |
Number of homes in ongoing production
| Number | Mar 31 2025 | Mar 31 2024 | Dec 31 2024 | |
| Antal | 31 mar 2025 | 31 mar 2024 | 31 dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 1,207 | 1,866 | 1,056 |
| – of which sold share | – varav såld andel | 43% | 61% | 45% |
| Rentals | Hyresrätter | 80 | 320 | 80 |
| – of which sold share | – varav såld andel | 100% | 36% | 100% |
| Homes on our own balance sheet | Bostäder i egen balansräkning | 623 | 624 | 436 |
| – of which sold share | – varav såld andel | 9% | 0% | 4% |
| Total number of homes | Totalt antal bostäder | 1,910 | 2,810 | 1,572 |
| – of which sold share | – varav såld andel | 35% | 45% | 37% |
Number of sold homes
| Number | Jan-Mar 2025 | Jan-Mar 2024 | Apr 2024-Mar 2025 | Jan-Dec 2024 | |
| Antal | Jan-mar 2025 | Jan-mar 2024 | Apr 2024-mar 2025 | Jan-dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 226 | 166 | 770 | 710 |
| Rentals | Hyresrätter | – | 139 | 159 | 298 |
| Homes on our own balance sheet | Bostäder i egen balansräkning | 46 | – | 69 | 23 |
| Total number of homes | Totalt antal bostäder | 272 | 305 | 998 | 1,031 |
Number of completed and repurchased homes
| Number | Mar 31 2025 | Mar 31 2024 | Dec 31 2024 | |
| Antal | 31 mar 2025 | 31 mar 2024 | 31 dec 2024 | |
| Tenant owner apartments/condominiums | Bostadsrätter och ägarlägenheter | 372 | 254 | 266 |
| Rentals | Hyresrätter | 306 | 225 | 306 |
| Total number of homes | Totalt antal bostäder | 678 | 479 | 572 |
Time of completion of our own ongoing housing developments
Housing project, Bankløkka
Horten, Norwary
Property Development
Net sales and operating profit from operations are derived from acquisitions, development, running and managing wholly owned property, shares in profit from joint ventures as well as capital gains/losses from the divestiture of completed property and shares in joint ventures.
Net sales for the first quarter 2025 were SEK 57 million (23) and operating profit was SEK 49 million (261). Capital gains from property divestitures and participations in joint ventures amounted in total to SEK 47 million (258). The comparable period included capital gains of SEK 220 million from the sale of shares in the joint venture Tornet Bostadsproduktion. Profit contributions from joint ventures amounted to SEK 18 million (19).
At the end of the period capital employed in Property Development was SEK 5,015 million (4,590). A large part of the capital employed consists of shares in joint ventures and loans to joint ventures. During the quarter, Fastighets AB Centur distributed a dividend of SEK 1,100 million which was offset against an interest-bearing liability generated in connection with the acquisition of properties from Fastighets AB Centur in the fourth quarter 2024.
The table below presents major property projects per March 31, 2025.
Property projects
| Type of project | Location | Rentable area in m2 | Degree rented, % | Recognized value, MSEK | Adopted investment, MSEK | Completion time point | Completion level, % | |||
| Typ av projekt | Ort | Uthyrningsbar yta, m2 | Uthyrningsgrad, % | Bokfört värde, Mkr | Beslutad investering, Mkr | Tidpunkt färdigställande | Färdigställande-grad, % | |||
| Ongoing | Pågående | |||||||||
| Retail, office building and parking | Malmö | Handel, kontor och parkering | Malmö | 8,300 | 43 | 114 | 592* | Q3-2027 | Q3-2027 | 19 |
| Completed | Färdigställda | |||||||||
| Office building | Gothenburg | Kontor | Göteborg | 12,900 | 40 | 536 | ||||
| Apartment hotel | Malmö | Lägenhetshotell | Malmö | 4,200 | 100 | 137 | ||||
| Office building | Malmö | Kontor | Malmö | 2,500 | 100 | 140 | ||||
| Office building | Malmö | Kontor | Malmö | 3,600 | 100 | 131 | ||||
| Office building | Malmö | Kontor | Malmö | 4,900 | 100 | 260 |
* The amount includes approximately 17,000 m2 of parkering space
Significant joint ventures
Peab’s significant joint venture companies Fastighets AB ML4, Point Hyllie Holding AB and Skiab Invest AB are developing well and via them Peab has built up considerable indirect holdings in investment property and development property for both commercial and residential purposes. Regular returns are in the form of shares in the profit from joint ventures recognized in operating profit and interest income on lending. Changes in market values that affect book values in the joint venture companies are not included in Peab’s accounts.
Fastighets AB ML4
Own and manage the research facility Max IV. The facility is rented to Lund University.
Peab’s share: 50 percent
Partner: Wihlborgs
Geography: Lund
Recognized value on properties March 31, 2025: SEK 1,828 million (1,878)
Major ongoing projects: No major ongoing projects
Point Hyllie Holding AB
Develop and own the office property The Point as well as the hotel property Värdshuset 5 (Operator Quality Hotel View).
Peab’s share: 50 percent
Partner: Volito
Geography: Hyllie, Malmö
Recognized value on properties March 31, 2025: SEK 1,335 million (1,370)
Major ongoing projects: No major ongoing projects
Skiab Invest AB
Develop, own and manage commercial property and housing in the Scandinavian mountains.
Peab’s share: 50 percent
Partner: SkiStar
Geography: Scandinavian mountains
Recognized value on properties March 31, 2025 1): SEK 2,125 million (2,154)
Peab’s portion of unrecognized fair value exclusive tax 1): SEK 65 million (46)
Major ongoing projects: 37 vacation apartments, Trysil Suites, in Trysil
1) Valued at market price in joint ventures. Market prices on properties that affect the recognized values in the joint ventures are not included in Peab’s accounts.