Innovation Properties and Barings Break Ground on 242-Home Tuna Torg Project in Tumba

Innovation Properties and Barings have started construction on Tuna Torg, a 242-home residential project in Tumba, Sweden, with a symbolic groundbreaking announced Nov. 10, 2026. Representatives from Botkyrka Municipality and contractor Kungsmontage joined the two owners for the ceremonial first spade.

Tuna Torg Groundbreaking in Tumba

The ceremony marked the construction start for the 242 new homes in Tumba, in Botkyrka Municipality. Innovation Properties, the project's sponsor and owner, and Barings, a participant in the development, took part alongside municipal representatives and Kungsmontage, the contractor.

Discussions during the morning focused on how Tuna Torg can contribute to Tumba's development and how the project's sustainability ambitions are taking shape in practice. The homes are located close to commuter rail.

Sustainability Targets and Rooftop Activity Park

The project is targeting energy class A and certification under Miljöbyggnad Silver.

A rooftop activity park is planned with space for exercise, movement and recovery. The park is intended to make it easier to incorporate physical activity into daily life while serving as a meeting place for neighbors. It will be open to residents of Tuna Torg as well as others living in the surrounding block.

Swedish Housing Market Context

Tuna Torg is starting as Swedish residential construction recovers gradually from a sharp downturn. Statistics Sweden's preliminary data show approximately 15,350 dwelling starts in the first two quarters of 2026, compared with 14,163 in the same period of 2025 and 15,696 in 2024. Multi-dwelling starts rose to about 10,300 from 9,294 in the first half of 2025.

The recovery remains selective. National housing starts fell by nearly half in 2023 to slightly below 29,000 units and subsequently stabilized around 28,000 annually. Industry projections put 2026 starts at roughly 27,000.

Financing conditions have eased compared with the rate shock. Average Swedish household mortgage rates were 2.83% in September 2026, up modestly from 2.78% in August. Lower and more stable borrowing costs have helped housing prices and construction activity recover, although affordability and presales remain central risks for new projects.

Investment Backdrop

Swedish residential investment totaled SEK 17.8 billion in the second quarter of 2026, down 6.3% from SEK 19.0 billion a year earlier. Prime residential yields in Stockholm and Gothenburg compressed by five basis points in the quarter to 3.75% and 4.30%, respectively, while Malmö remained at 4.50%. Those figures reflect larger city markets rather than the suburban Botkyrka market where Tuna Torg is located.

Outlook

With construction now under way, Innovation Properties said it looks forward to following the block as it begins to take shape. The project's stated differentiators are its commuter-oriented location, energy class A target, Miljöbyggnad Silver certification goal and the rooftop activity park.

Sources

• Innovation Properties: Projekt Tuna torg – Första spadtaget med Botkyrka kommun