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
April – June 2025
Net sales in Project Development were largely unchanged and amounted to SEK 751 million (720) during the second quarter 2025. Operating profit amounted to SEK -1 million (-33) and the operating margin was -0.1 percent (-4.6).
January – June 2025
Net sales in Project Development during first half-year 2025 amounted to SEK 1,742 million (1,775). Operating profit amounted to SEK 82 million (213) and the operating margin was 4.7 percent (12.0).
Capital employed in Project Development at the end of the period amounted to SEK 19,199 million (18,408).
Capital employed
| MSEK | Jun 30 2025 | Jun 30 2024 | Dec 31 2024 | |
| Mkr | 30 jun 2025 | 30 jun 2024 | 31 dec 2024 | |
| Operations property | Driftsfastigheter | 33 | 41 | 34 |
| Investment property | Förvaltningsfastigheter | 35 | 36 | 36 |
| Project and development property | Projekt- och exploateringsfastigheter | 17,575 | 15,524 | 17,017 |
| of which housing development rights | varav bostadsbyggrätter | 9,154 | 8,714 | 9,344 |
| of which commercial development rights | varav kommersiella byggrätter | 1,605 | 1,011 | 1,671 |
| of which ongoing housing projects | varav pågående bostadsprojekt | 3,371 | 3,069 | 2,740 |
| of which ongoing commercial projects | varav pågående kommersiella projekt | 189 | 761 | 115 |
| of which completed and repurchased homes | varav färdigställda och återköpta bostäder | 1,967 | 1,933 | 1,895 |
| of which completed commercial property | varav färdigställda kommersiella fastigheter | 1,289 | 36 | 1,252 |
| Shares in joint ventures | Andelar i joint ventures | 1,628 | 2,407 | 2,880 |
| Loans to joint ventures | Utlåning till joint ventures | 500 | 1,433 | 484 |
| Working capital and other | Rörelsekapital och övrigt | -572 | -1,033 | -684 |
| Total | Summa | 19,199 | 18,408 | 19,767 |
| of which Property Development | varav Fastighetsutveckling | 4,384 | 4,703 | 6,165 |
| of which Housing Development | varav Bostadsutveckling | 14,815 | 13,705 | 13,602 |
Key ratios
| Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul-Jun 2024/2025 | Jan-Dec 2024 | ||
| Apr-jun 2025 | Apr-jun 2024 | Jan-jun 2025 | Jan-jun 2024 | Jul-jun 2024/2025 | Jan-dec 2024 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 751 | 720 | 1,742 | 1,775 | 4,237 | 4,270 |
| of which Property Development | varav Fastighetsutveckling | 36 | 21 | 93 | 44 | 735 | 686 |
| of which Housing Development | varav Bostadsutveckling | 715 | 699 | 1,649 | 1,731 | 3,502 | 3,584 |
| Operating profit, MSEK | Rörelseresultat, Mkr | -1 | -33 | 82 | 213 | 597 | 728 |
| of which Property Development | varav Fastighetsutveckling | 11 | 21 | 60 | 282 | 601 | 823 |
| of which Housing Development | varav Bostadsutveckling | -12 | -54 | 22 | -69 | -4 | -95 |
| Operating margin, % | Rörelsemarginal, % | -0.1 | -4.6 | 4.7 | 12.0 | 14.1 | 17.0 |
| of which Property Development | varav Fastighetsutveckling | 30.6 | 100.0 | 64.5 | 640.9 | 81.8 | 120.0 |
| of which Housing Development | varav Bostadsutveckling | -1.7 | -7.7 | 1.3 | -4.0 | -0.1 | -2.7 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 19,199 | 18,408 | 19,199 | 18,408 | 19,199 | 19,767 |
| Orders received, MSEK | Orderingång, Mkr | 322 | 13 | 1,598 | 640 | 3,171 | 2,213 |
| Order backlog, MSEK | Orderstock, Mkr | 1,738 | 1,213 | 1,738 | 1,213 | 1,738 | 1,536 |
| Operating cash flow, MSEK | Operativt kassaflöde, Mkr | -716 | -107 | -447 | 44 | -69 | 423 |
| Average number of employees | Medeltal antal anställda | 130 | 161 | 131 | 171 | 136 | 155 |
Housing Development
April – June 2025
Net sales in the second quarter 2025 amounted to SEK 715 million (699). Operating profit was SEK -12 million (-54) and the operating margin was -1.7 percent (-7.7). A number of production starts had a positive effect during the quarter, although activity continued to be low.
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 280 (–) own developed homes during the quarter. Of these, 108 (–) were tenant-owner apartments/condominiums, of which 85 (–) were converted from homes on our own balance sheet. During the quarter, 190 (–) homes were started as rental apartments, of which 166 apartments are part of a nursing home on Lilla Essingen in Stockholm. For more information see section below. Production started on 67 homes as new homes on our own balance sheet during the quarter, but since there are 85 homes converted to tenant-owner apartments/condominiums the net effect of production-starts on our own balance sheet is -18 (–).The number of sold homes during the quarter was 331 (136), of which 150 (136) were tenant-owner apartments/condominiums, 166 (–) were rental apartments and 15 (–) were homes on our own balance sheet under production.
January – June 2025
The weak demand on the Nordic housing market in recent years is clearly noticeable in Housing Development. Net sales in the first half-year 2025 amounted to SEK 1,649 million (1,731). The decline in net sales is due to few production starts and few ongoing housing projects of tenant-owner apartments/condominiums. Operating profit was SEK 22 million (-69) and the operating margin was 1.3 percent (-4.0). The operating margin for the latest rolling 12-month period was -0.1 percent compared to -2.7 percent for the full year 2024.
Production started on a total of 803 (137) own developed homes during the first half of the year. Of these 444 (137) were tenant-owner apartments/condominiums, of which 125 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 with pre-sales in unique locations. Production started on 190 (–) rental apartments and on 169 (–) homes as new housing projects on our own balance sheet. The total number of homes sold during the first half-year was 603 (441), of which 376 (302) were tenant-owner apartments/condominiums, 166 (139) were rental apartments and 61 (–) were homes on our own balance sheet under production.
The total number of homes in production at the end of the period was 2,081 (2,366), of which 1,206 (1,504) were tenant-owner apartments/condominiums, 270 (239) were homes in rental apartment projects and 605 (623) were homes on our own balance sheet. The sales rate for the total number of homes in production at the end of the period was 40 percent (44). The sales rate for tenant-owner apartments/condominiums was 44 percent (61). The total number of completed and repurchased homes was 638 (572), of which 332 (266) were tenant-owner apartments/condominiums and 306 (306) were rental apartments.
Sales in our own developed homes continued to be at a low level during the period, even though we are selling at an even pace. The housing market seems to have landed on a new level where during the past years production starts of homes are significantly fewer than there used to be. We are adjusting and wherever the market is that’s where we are. At the same time we see the trend of sales increasing as a project approaches completion continues. Since the beginning of the year we have therefore been working on the strategy of – given our financial targets – increasing our own housing development production on our own balance sheet and later on converting it into tenant-owner apartments. This is particularly the case for projects in metropolitan areas. Starting projects on our own balance sheet increases our tied-up capital and entails deferred effects on profits according to segment reporting, compared with our traditional method of advance sales before production starts of our own developed projects.
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 we work actively wherever the market is.
Capital employed amounted to SEK 14,815 million (13,705) at the end of the period.
Peab develops and builds nursing home in Stockholm
Peab and Heba will together in the newly formed company, Villa Primus AB, develop a nursing home on Lilla Essingen in Stockholm. The nursing home will have room for 160 housing units and one sheltered accommodation with six beds. The project contributes to Stockholm’s growing need for modern and safe housing for the elderly. The property comprises 12,000 m2 GFA with more than 10,000 m2 of lettable area and is being designed with a strong focus on functionality, accessibility and sustainability. Heba will take possession of its share in the joint company in the autumn of 2025. The company will own the project until completion, which is expected to occur in 2028. After that, Heba will acquire the nursing home. Both the nursing home and the sheltered accommodation are fully leased on 20 year leases to the care group Ambea. Villa Primus will be certified according to Miljöbyggnad Silver 4.0 and achieve energy class B or better. The building will be built with climate-improved concrete and the roof will be equipped with sedum and solar panels to further reduce its energy and climate footprint.
Net sales
per geographic market, rolling 12 month
Brf Alba
Lund
Development rights for housing
| Number, approx. | Jun 30 2025 | Jun 30 2024 | Dec 31 2024 | |
| Antal, cirka | 30 jun 2025 | 30 jun 2024 | 31 dec 2024 | |
| Development rights on our own balance sheet | Byggrätter i egen balansräkning | 23,400 | 21,800 | 24,000 |
| Development rights via joint ventures | Byggrätter via joint ventures | 4,900 | 4,000 | 3,700 |
| Development rights via options etc. | Byggrätter via optioner m.m. | 5,700 | 6,900 | 7,400 |
| Total | Totalt | 34,000 | 32,700 | 35,100 |
Number of sold homes
| Number | Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul-Jun 2024/2025 | Jan-Dec 2024 | |
| Antal | Apr-jun 2025 | Apr-jun 2024 | Jan-jun 2025 | Jan-jun 2024 | Jul-jun 2024/2025 | Jan-dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 150 | 136 | 376 | 302 | 784 | 710 |
| Rentals | Hyresrätter | 166 | – | 166 | 139 | 325 | 298 |
| Homes on our own balance sheet | Bostäder i egen balansräkning | 15 | – | 61 | – | 84 | 23 |
| Total number of homes | Totalt antal bostäder | 331 | 136 | 603 | 441 | 1,193 | 1,031 |
Number of started-up homes
| Number | Apr-Jun 2025 | Apr-Jun 2024 | Jan-Jun 2025 | Jan-Jun 2024 | Jul-Jun 2024/2025 | Jan-Dec 2024 | |
| Antal | Apr-jun 2025 | Apr-jun 2024 | Jan-jun 2025 | Jan-jun 2024 | Jul-jun 2024/2025 | Jan-dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 108 | – | 444 | 137 | 964 | 657 |
| – of which converted from homes on our own balance sheet | – varav konvertering från bostäder i egen balansräkning | 85 | – | 125 | – | 334 | 209 |
| Rentals | Hyresrätter | 190 | – | 190 | – | 190 | – |
| Homes on our own balance sheet | Bostäder i egen balansräkning | -18 | – | 169 | – | -18 | -187 |
| – of which converted to tenant-owner apartments/condominiums | – varav konvertering till bostadsrätter/ägarlägenheter | -85 | – | -125 | – | -334 | -209 |
| Total number of homes | Totalt antal bostäder | 280 | – | 803 | 137 | 1,136 | 470 |
Number of homes in ongoing production
| Number | Jun 30 2025 | Jun 30 2024 | Dec 31 2024 | |
| Antal | 30 jun 2025 | 30 jun 2024 | 31 dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 1,206 | 1,504 | 1,056 |
| – of which sold share | – varav såld andel | 44% | 61% | 45% |
| Rentals | Hyresrätter | 270 | 239 | 80 |
| – of which sold share | – varav såld andel | 91% | 49% | 100% |
| Homes on our own balance sheet | Bostäder i egen balansräkning | 605 | 623 | 436 |
| – of which sold share | – varav såld andel | 8% | 0% | 4% |
| Total number of homes | Totalt antal bostäder | 2,081 | 2,366 | 1,572 |
| – of which sold share | – varav såld andel | 40% | 44% | 37% |
Number of completed and repurchased homes
| Number | Jun 30 2025 | Jun 30 2024 | Dec 31 2024 | |
| Antal | 30 jun 2025 | 30 jun 2024 | 31 dec 2024 | |
| Tenant owner apartments/condominiums | Bostadsrätter och ägarlägenheter | 332 | 266 | 266 |
| Rentals | Hyresrätter | 306 | 306 | 306 |
| Total number of homes | Totalt antal bostäder | 638 | 572 | 572 |
Time of completion of our own ongoing housing developments
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.
April – June 2025
Net sales for the second quarter 2025 were SEK 36 million (21) and operating profit was SEK 11 million (21). No property transactions have taken place during the quarter. In the corresponding quarter last year capital gains from real estate transactions amounted to SEK 17 million. Profit contributions from joint ventures was SEK 17 million (15).
January – June 2025
Net sales for the first half-year 2025 were SEK 93 million (44) and operating profit was SEK 60 million (282). Capital gains from property divestitures and participations in joint ventures amounted in total to SEK 47 million (275). 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 were on par with the previous year and amounted to SEK 35 million (34).
At the end of the period capital employed in Property Development was SEK 4,384 million (4,703). Capital employed consists of shares in joint ventures, loans to joint ventures and ongoing and completed property projects. During the period, 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 June 30, 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 | 163 | 592* | Q3-2027 | Q3-2027 | 28 |
| Completed | Färdigställda | |||||||||
| Office building | Gothenburg | Kontor | Göteborg | 12,900 | 40 | 546 | ||||
| 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 | 130 | ||||
| Office building | Malmö | Kontor | Malmö | 4,900 | 100 | 258 |
* 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 June 30, 2025: SEK 1,815 million (1,868)
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 June 30, 2025: SEK 1,326 million (1,361)
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 June 30, 2025 1): SEK 2,164 million (2,184)
Peab’s portion of unrecognized fair value exclusive tax 1): SEK 71 million (52)
Major ongoing projects: 37 condominiums, Trysil Suites in Trysil, 100 apartments, Wasakölen in Lindvall, Sälen
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.