"Growth will not happen within the tariffs"

The industrial transformations are leading to enormous investments in Norrbotten, SEK 200 billion alone until 2030. But so far we are not seeing investments in the absolutely necessary housing. Why then? And what is needed to get housing construction started? These were questions that were asked during our panel discussion in connection with the Business Arena trade fair in Stockholm.

 - It is an incredible opportunity, and to me it is almost incomprehensible that the real estate industry has not made an effort to move its positions up north. This has been going on for a long time and billions upon billions have already been invested. If both small and large companies can make investment decisions of 200 billion in the coming years, how can the real estate industry not see a long-term business there? asked the government's industry coordinator Kristina Alvendal.

Susanne Olofsson, project manager at Norrlandsfonden, emphasized that the industrial transition in Norrbotten is not one factory, but several projects.

 - It is clear that there is risk, but we have to believe in the development. We have to look at the fact that it is not one industry but several, because that balances out, becomes safer ground to stand on. A lot of business opportunities arise.

“Media shadow”

David Sundström, CEO of the construction company Lindbäcks, believes that ignorance is an important reason for the low level of investment in real estate.

 - There has been an inability to absorb this development and northern Sweden has been in the media shadow. People don't understand this issue, so we have a job to do there. And we have to be forced to look at our business models, do we follow the money or do we follow the population history?

The panel discussion was arranged on the main stage during the second day of the fair. 

He believes that this is not a Norrbotten issue or even a Norrland issue. There are forces today that are pushing for major investments in many places outside the big cities.

 - For 40 years there has been a strong urbanization trend. But something is happening. It is driven by green transition, by NATO. It affects my business model and it should affect other real estate companies. Those who sleep and invest inside the tariffs will get by, but that is not where the growth will happen. Throw out the Excel sheet and think about what the future looks like!

Janus Brandin, regional development director at Region Norrbotten, said that 20-000 immigrants are needed just for the industrial jobs.

 - These people need somewhere to live. If there is no housing, people will not come. The market has not woken up yet. Perhaps this is not so strange because the factories are being built now. Once they go into production, there needs to be housing. 11 out of 14 municipalities already have a housing deficit today.

Janus Brandin stressed how critical housing supply is for the new industries to be staffed.

Kristina Alvendal highlighted that investment needs do not only include housing.

 - The best support we as a society can give to expansive municipalities is to ensure that there is infrastructure and functioning community functions. We need to find actors who are interested in participating in a larger community building.

Janus Brandin called for stronger commitment from the government.

 - We need double tracks, a target year on the Norrbotten Line, more electricity production and an electricity grid, and there needs to be a commitment. What is happening in Norrbotten is good for Sweden. If we succeed, we will be the first in the world and can define Swedish industry for the next 100 years. We would like to see this social commitment also at Rosenbad, to a greater extent than before. The window is open right now for us to take the lead, otherwise someone else will. We also have a short time to solve the climate challenges. SSAB is reducing Sweden's emissions by 10% on a board. The climate benefit of this industry is enormous.

New model reduces risk

Susanne Olofsson spoke about Norrlandsfonden's pilot project to test a new financing model for construction projects. The model is intended to relieve risk and increase liquidity for the developer during the first critical years before a property is completely completed and fully leased.

 - We started the project as a result of Peter Larsson's investigation. We said, "No dry swimming without trying it out." In this way, Skellefteå will get 108 apartments built by Lindbäcks, said Susanne Olofsson.

Risk relief is something that would really help those actors who are currently struggling to realize the potential of the green transition, said Janus Brandin.

 - Risk sharing is what municipalities and companies are asking for, someone must be involved and share the risk, provide credits and loans. It is reasonable for the state to take that risk considering that the industrial transition will generate tax revenues of up to 35 billion per year, of which 80 percent goes to the state.

Invest in Norrbotten held the work together with the joint stand at the Business Arena, where the municipalities were offered the opportunity to participate and talk about their needs and access to land.

The panel discussion was held during the Business Arena at Stockholm Waterfront Congress on September 19. Region Norrbotten participated there together with our company Invest in Norrbotten and seven municipalities: Luleå, Gällivare, Pajala, Boden, Piteå, Överkalix and Älvsbyn.

The initiative to work together for greater impact and visibility received a lot of attention and appreciation, not least from the participating municipalities.

 – It is so important that we do this together, to show the fantastic breadth that exists in Norrbotten. We become so much stronger together. I feel that the interest has been great. There is a curiosity about the big change that is happening, but also a great deal of ignorance. And it is incredibly important that we continue to work on informing, informing, informing, says Jörgen Hult, brand manager at Piteå Municipality.

Lena Segerlund, CEO of Invest in Norrbotten, was happy with the good turnout despite the fact that there were quite rapid changes to the fair.