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 metropolitan areas throughout the Nordic region.
Net sales and profit
October – December 2025
Net sales in Project Development amounted to SEK 1,711 million (1,737) during the fourth quarter 2025. Operating profit amounted to SEK 120 million (521) and the operating margin was 7.0 percent (30.0).
January – December 2025
Net sales in Project Development during 2025 were SEK 4,345 million (4,270). Operating profit amounted to SEK 238 million (728) and the operating margin was 5.5 percent (17.0).
Capital employed in Project Development at the end of the year amounted to SEK 18,220 million (19,767).
Capital employed
| MSEK | Dec 31 2025 | Dec 31 2024 | |
| Mkr | 31 dec 2025 | 31 dec 2024 | |
| Operations property | Driftsfastigheter | 31 | 34 |
| Investment property | Förvaltningsfastigheter | 35 | 36 |
| Project and development property | Projekt- och exploateringsfastigheter | 16,477 | 17,017 |
| of which housing development rights | varav bostadsbyggrätter | 8,689 | 9,344 |
| of which commercial development rights | varav kommersiella byggrätter | 1,575 | 1,671 |
| of which ongoing housing projects | varav pågående bostadsprojekt | 3,114 | 2,740 |
| of which ongoing commercial projects | varav pågående kommersiella projekt | 454 | 115 |
| of which completed and repurchased homes | varav färdigställda och återköpta bostäder | 1,348 | 1,895 |
| of which completed commercial property | varav färdigställda kommersiella fastigheter | 1,297 | 1,252 |
| Shares in joint ventures | Andelar i joint ventures | 1,613 | 2,880 |
| Loans to joint ventures | Utlåning till joint ventures | 492 | 484 |
| Working capital and other | Rörelsekapital och övrigt | -428 | -684 |
| Total | Summa | 18,220 | 19,767 |
| of which Property Development | varav Fastighetsutveckling | 4,585 | 6,165 |
| of which Housing Development | varav Bostadsutveckling | 13,635 | 13,602 |
Key ratios
| Oct-Dec 2025 | Oct-Dec 2024 | Jan-Dec 2025 | Jan-Dec 2024 | ||
| Okt-dec 2025 | Okt-dec 2024 | Jan-dec 2025 | Jan-dec 2024 | ||
| Net sales, MSEK | Nettoomsättning, Mkr | 1,711 | 1,737 | 4,345 | 4,270 |
| of which Property Development | varav Fastighetsutveckling | 25 | 636 | 166 | 686 |
| of which Housing Development | varav Bostadsutveckling | 1,686 | 1,101 | 4,179 | 3,584 |
| Operating profit, MSEK | Rörelseresultat, Mkr | 120 | 521 | 238 | 728 |
| of which Property Development | varav Fastighetsutveckling | 84 | 533 | 228 | 823 |
| of which Housing Development | varav Bostadsutveckling | 36 | -12 | 10 | -95 |
| Operating margin, % | Rörelsemarginal, % | 7.0 | 30.0 | 5.5 | 17.0 |
| of which Property Development | varav Fastighetsutveckling | 336.0 | 83.8 | 137.3 | 120.0 |
| of which Housing Development | varav Bostadsutveckling | 2.1 | -1.1 | 0.2 | -2.7 |
| Capital employed at the end of the period, MSEK | Sysselsatt kapital vid periodens utgång, Mkr | 18,220 | 19,767 | 18,220 | 19,767 |
| Orders received, MSEK | Orderingång, Mkr | 928 | 1,246 | 2,865 | 2,213 |
| Order backlog, MSEK | Orderstock, Mkr | 1,702 | 1,536 | 1,702 | 1,536 |
| Operating cash flow, MSEK | Operativt kassaflöde, Mkr | 922 | 204 | 552 | 423 |
| Average number of employees | Medeltal antal anställda | 120 | 139 | 126 | 155 |
Housing Development
October – December 2025
Net sales in the fourth quarter 2025 amounted to SEK 1,686 million (1,101). Operating profit was SEK 36 million (-12) and the operating margin was 2.1 percent (-1.1).
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.
During the quarter a total of 358 (225) homes were started of which 178 were tenant-owner apartments/condominiums, all of which have been converted from homes on our own balance sheet, 102 (–) were homes in rental apartment projects and 78 were homes on our own balance sheet. During the fourth quarter last year 209 were converted from housing on our own balance sheet. The number of sold homes during the quarter was 344 (290), of which 108 (267) were tenant-owner apartments/condominiums, 211 (–) were rental apartments and 25 (23) were homes on our own balance sheet under production.
January – December 2025
Net sales increased by 17 percent and amounted to SEK 4,179 million (3,584) during the year. Operating profit was SEK 10 million (-95) and the operating margin was 0.2 percent (-2.7).
Production started on a total of 1,161 (470) own developed homes during the year. Of these 733 (657) were tenant-owner apartments/condominiums, of which 414 (209) were converted from homes on our own balance sheet. Two of the new housing developments 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 292 (–) rental apartments. Production started on net 136 (-187) homes as new housing developments on our own balance sheet. The total number of homes sold during the year was 1,248 (1,031), of which 575 (710) were tenant-owner apartments/condominiums, 568 (298) were rental apartments and 105 (23) were homes on our own balance sheet under production.
The total number of homes in production at the end of the year was 2,006 (1,572), of which 1,225 (1,056) were tenant-owner apartments/condominiums, 209 (80) were homes in rental apartment projects and 572 (436) were homes on our own balance sheet. The sales rate for the total number of homes in production at the end of the year was 37 percent, which was the same as at the end of 2024. The sales rate for tenant-owner apartments/condominiums was 44 percent (45). The total number of completed and repurchased homes was 370 (572), of which 364 (266) were tenant-owner apartments/condominiums and 6 (306) were rental apartments.
The housing market seems to have established itself on a new level, which means that in recent years considerably fewer homes have been production-started than we have been used to. We adapt and we are where the market is. At the same time, we see that the trend of higher sales as the project approaches completion continues. Since the beginning of the year we have therefore been working with the strategy – given our financial targets – of increasing production of our own housing developments on our own balance sheet to later convert them 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 profit in segment reporting compared with our traditional method of advance sales before production-starts of our own developments.
The market for new production of homes stabilized in 2025. Lower interest rates, proposals to ease mortgage regulations and stabilized prices on the secondhand market help. However, supply on the secondhand market remains high which, together with consumer caution, means that the market differs. The markets in the big cities and good micro locations are better than in other places that are still weak. We see a similar development in Sweden, Norway and Finland.
Capital employed amounted to SEK 13,635 million (13,602) at the end of the year.
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 designed with a strong focus on functionality, accessibility and sustainability. Heba took possession of its share in the joint company in the fourth quarter 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.
Peab has signed a contract for the sale of rental apartment buildings in Vellinge
Peab has signed a contract for the sale of a rental apartment project worth SEK 260 million in Vellinge to the Folksam Group. The rental apartments are expected to be completed and transferred at the turn of the year 2027/2028. The housing project Vallmovallen is located in central Vellinge, within the so-called Campus area, where Peab has been an active part of its development since 2022. The project comprises 102 apartments of varying sizes and commercial space totaling over 6,000 m2. The buildings will be certified according to Miljöbyggnad Silver.
Net sales
per geographic market
Brf Lojobacken
Stockholm
Development rights for housing
| Number, approx. | Dec 31 2025 | Dec 31 2024 | |
| Antal, cirka | 31 dec 2025 | 31 dec 2024 | |
| Development rights on our own balance sheet | Byggrätter i egen balansräkning | 22,900 | 24,000 |
| Development rights via joint ventures | Byggrätter via joint ventures | 4,900 | 3,700 |
| Development rights via options etc. | Byggrätter via optioner m.m. | 5,200 | 7,400 |
| Total | Totalt | 33,000 | 35,100 |
Number of sold homes
| Number | Oct-Dec 2025 | Oct-Dec 2024 | Jan-Dec 2025 | Jan-Dec 2024 | |
| Antal | Okt-dec 2025 | Okt-dec 2024 | Jan-dec 2025 | Jan-dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 108 | 267 | 575 | 710 |
| Rentals | Hyresrätter | 211 | – | 568 | 298 |
| Homes on our own balance sheet | Bostäder i egen balansräkning | 25 | 23 | 105 | 23 |
| Total number of homes | Totalt antal bostäder | 344 | 290 | 1,248 | 1,031 |
Number of started-up homes
| Number | Oct-Dec 2025 | Oct-Dec 2024 | Jan-Dec 2025 | Jan-Dec 2024 | |
| Antal | Okt-dec 2025 | Okt-dec 2024 | Jan-dec 2025 | Jan-dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 178 | 412 | 733 | 657 |
| – of which converted from homes on our own balance sheet | – varav konvertering från bostäder i egen balansräkning | 178 | 209 | 414 | 209 |
| Rentals | Hyresrätter | 102 | – | 292 | – |
| Homes on our own balance sheet | Bostäder i egen balansräkning | 78 | -187 | 136 | -187 |
| – of which converted to tenant-owner apartments/condominiums | – varav konvertering till bostadsrätter/ägarlägenheter | -178 | -209 | -414 | -209 |
| Total number of homes | Totalt antal bostäder | 358 | 225 | 1,161 | 470 |
Number of homes in ongoing production
| Number | Dec 31 2025 | Dec 31 2024 | |
| Antal | 31 dec 2025 | 31 dec 2024 | |
| Tenant-owner apartments/condominiums | Bostadsrätter/ägarlägenheter | 1,225 | 1,056 |
| – of which sold share | – varav såld andel | 44% | 45% |
| Rentals | Hyresrätter | 209 | 80 |
| – of which sold share | – varav såld andel | 89% | 100% |
| Homes on our own balance sheet | Bostäder i egen balansräkning | 572 | 436 |
| – of which sold share | – varav såld andel | 3% | 4% |
| Total number of homes | Totalt antal bostäder | 2,006 | 1,572 |
| – of which sold share | – varav såld andel | 37% | 37% |
Number of completed and repurchased homes
| Number | Dec 31 2025 | Dec 31 2024 | |
| Antal | 31 dec 2025 | 31 dec 2024 | |
| Tenant owner apartments/condominiums | Bostadsrätter och ägarlägenheter | 364 | 266 |
| Rentals | Hyresrätter | 6 | 306 |
| Total number of homes | Totalt antal bostäder | 370 | 572 |
Time of completion of our own ongoing housing developments
Property Development
Net sales and operating profit from operations are derived from acquiring, developing, 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.
October – December 2025
Net sales for the fourth quarter 2025 were SEK 25 million (636) and operating profit was SEK 84 million (533). Capital gains from property divestitures and participations in joint ventures amounted to SEK 53 million (169). Profit contributions from joint ventures were SEK 47 million (385). During the fourth quarter 2024 assets in the joint venture Fastighets AB Centur were divided up where both Peab and the other owner, Fastighets AB Balder, acquired the majority of the property portfolio. The transactions had a positive effect on operating profit in Property Development of SEK 367 million which was recognized in profit from joint ventures.
January – December 2025
Net sales for 2025 were SEK 166 million (686) and operating profit was SEK 228 million (823). Capital gains from property divestitures and participations in joint ventures amounted in total to SEK 117 million (440). 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 163 million (441). During the fourth quarter 2024 assets in the joint venture Fastighets AB Centur were divided up where both Peab and the other owner, Fastighets AB Balder, acquired the majority of the property portfolio. The transactions had a positive effect on operating profit in Property Development of SEK 367 million which was recognized in profit from joint ventures.
At the end of the year capital employed in Property Development was SEK 4,585 million (6,165). Capital employed consists of shares in joint ventures, loans to joint ventures and ongoing and completed property projects. At the beginning of the year, 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 December 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 | 300 | 592* | Q3-2027 | Q3-2027 | 51 |
| Retail | Malmö | Handel | Malmö | 8,600 | 100 | 99 | 164 | Q4-2026 | Q4-2026 | 60 |
| Preschool | Upplands Väsby | Förskola | Upplands Väsby | 1,200 | 100 | 30 | 67 | Q4-2026 | Q4-2026 | 45 |
| Completed | Färdigställda | |||||||||
| Office building | Gothenburg | Kontor | Göteborg | 12,900 | 69 | 563 | ||||
| Apartment hotel | Malmö | Lägenhetshotell | Malmö | 4,200 | 100 | 135 | ||||
| Office building | Malmö | Kontor | Malmö | 2,500 | 100 | 138 | ||||
| Office building | Malmö | Kontor | Malmö | 3,600 | 100 | 127 | ||||
| Office building | Malmö | Kontor | Malmö | 4,900 | 100 | 255 |
* The amount includes approximately 17,000 m2 of parkering space
Significant joint ventures
Peab’s significant joint ventures 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 from lending. Changes in market values that affect book values in the joint ventures 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 December 31, 2025: SEK 1,791 million (1,840)
Major ongoing projects: No major ongoing projects
Point Hyllie Holding AB
Own and manage 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 December 31, 2025: SEK 1,308 million (1,344)
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 December 31, 2025 1): SEK 2,341 million (2,157)
Peab’s portion of unrecognized fair value exclusive tax 1): SEK 93 million (59)
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.