The Impact of the U.S. Election on the Real Estate Sector – and Trends for 2025
“I noticing a bit of a rude awakening among many property owners as tenants in general are making ever higher demands,” says Svevia's chairman Magnus Meyer.
What are the trends shaping the construction and real estate industries heading into 2025? And how might the U.S. election influence the real estate sector in Northern Europe? Svevia's new Chairman of the Board, Magnus Meyer, shares his forward-looking insights in a discussion with Allicon’s CEO, Andreas Boo.
With extensive experience in leading roles across the technology, architecture, and real estate sectors, Magnus Meyer was appointed Chairman of the Board at Svevia in June this year. Svevia builds and maintains roads and infrastructure across Sweden. Meyer, who has also served as a board member at Allicon since 2022, now shares his perspective on key trends in the construction and real estate industries in 2025, highlighting the risks associated with vacant offices.
“Property owners need to take bold steps to avoid empty office spaces.”
What trends do you see?
“If we look at the current situation, the acute crisis that many real estate companies have faced—requiring significant action—has started to stabilize. The capital market is functioning again, and interest rates are declining. On the other hand, the sector is now grappling with operational challenges, particularly in the office market, which remains very tough. COVID has left many large office buildings, especially in suburban areas, empty, as many people continue to work from home. This has led to businesses moving into smaller spaces in better locations. As a result, property companies are facing increased competition and a new, longer-term challenge: do they have the right offerings for their tenants?”
So, is there a risk of an oversupply of office spaces – and what happens to them?
“The problem is that in many office areas, it’s challenging from an urban development perspective to convert offices into residential buildings. A residential property in a predominantly office area doesn’t always offer a good living environment, even if the apartments themselves might be fine. However, there are opportunities even in heavily office-focused areas, such as Kista, which has fantastic transportation links and plenty of land that can be developed to integrate housing into the existing structure. I think the key, though, is to focus much more on what you can offer office tenants.”
What’s your outlook on the hybrid model moving forward?
“My view is that more people will gradually return to offices—albeit for different reasons. It’s harder in global cities like London or New York, where commutes can take several hours. In Sweden, public transportation is relatively affordable and efficient. Companies want their staff back in the office, and employees generally want to return too. Of course, this doesn’t apply to everyone, but the overall trend is slowly but surely moving toward more people returning to the workplace.”
What demands are tenants placing on offices in terms of connectivity and security?
“I see something of a wake-up call among many property owners, as tenants are increasingly raising their expectations. Take the sustainability dimension, for example: a few years ago, environmental certifications for buildings became commonplace, and tenants began demanding such standards from property owners. I believe we’ll see similar demands for security and technology. Who would want to rent space in a building that doesn’t meet sustainability standards or has security shortcomings? I think these demands will only grow.”
Do you believe the demand for secure digital infrastructure in buildings will also increase?
“Absolutely. Many Swedish authorities and companies now face new requirements that mean they can’t operate just anywhere—or alongside just anyone. They want control over their security infrastructure. This creates opportunities for providers of robust, operator-independent solutions like Allicon—companies that can identify forward-thinking sectors and businesses.”
Magnus Meyer concludes:
“NATO has seven baseline requirements for member countries, one of which is to ensure ‘robust and secure communication.’ For years to come, we’ll see investments in precisely this: robust and secure communication. For decades, there will be a focus on strengthening resilience to ensure that, even in a crisis, life and work can continue uninterrupted. Gradually, these issues will grow in importance and mature within companies and public authorities, where Allicon plays a clear and significant role.”
Want to learn more? We’d be delighted to hear from you!
Andreas Boo, CEO Allicon
+46 (0)734 254 566