The construction markets in Sweden and Norway are showing cautious signs of recovery after several challenging years. Builders’ merchants are performing better than in 2025, but new-build construction remains at low levels. Renovation and refurbishment activity, supported by the Swedish ROT tax deduction scheme for home improvements, together with demand from private customers, is providing support for the Swedish market. In Norway, the development is somewhat stronger – particularly in the northern part of the country.
Norra Timber’s perspective
For Norra Timber, the current market situation means continuing to focus on meeting demand from the renovation and refurbishment market, while closely monitoring developments in new-build construction.
Our assessment is that the market will continue to see a cautious recovery in the near term, with the private housing market remaining important. The Norwegian market, and particularly Northern Norway, currently appears somewhat stronger than the Swedish market.
We are therefore prioritising close customer relationships, reliable deliveries and the ability to offer the right products for both current and future market needs.
Looking ahead
Going forward, we will be closely monitoring developments in residential construction, the renovation and refurbishment market, and demand for timber products in Sweden and Norway. We will also be following how increased requirements for climate and product information affect the building materials market.
3 quick takeaways
Renovation and ROT are supporting the Swedish market
Improved household purchasing power and a more active housing market are supporting renovation and refurbishment activity. New- build construction, however, is recovering slowly, with the Swedish National Board of Housing, Building and Planning (Boverket) forecasting a more pronounced upturn first in 2027–2028.
Norway is performing better, particularly in the north
The Norwegian builders’ merchant market has grown during the first months of the year. Sales of wood-based building products increased by 3.9 per cent in May compared with the same month in 2025. Nordland, as well as Troms and Finnmark, are among the regions showing the strongest development.
Requirements for climate and product data are increasing
Requirements for product information, climate data and traceability are increasing across the construction industry. For suppliers, this means that product specifications increasingly need to be accompanied by clear information on factors such as origin, carbon footprint and material content.
