Crews have begun work on Sweden’s largest build-to-rent scheme, with the 177-unit complex part of a €500 million sustainable housing development in Flatås, Gothenburg. Swedish developer Derome Fastighet is leading the project, which comprises two timber-framed blocks rising five and six storeys, plus ground-floor retail space designed to enliven the local neighbourhood.
“We want to contribute to solving Sweden’s housing shortage by delivering attractive homes in timber with a low climate footprint,” according to Patrik Westin, CEO of Derome Fastighet. “By choosing mass timber, we cut each building’s carbon impact by 40% compared with steel or concrete construction.”
Wood Central understands that the timber modules for the project are manufactured at Derome’s Värö factory near Varberg, where floors, walls, kitchens, and fixed interiors are largely preassembled before delivery—an off-site process that helps accelerate build schedules, reduce on-site waste, and ensure quality. “Erecting a full floor in a single day has gone from aspiration to routine,” said Anders Svensson, project manager at Derome. “Precision-engineered modules reduce assembly time by up to 50% and eliminate much of the material waste seen in traditional builds.”
Over the past year, Derome has secured more than €2.5 billion in housing agreements across Sweden’s fastest-growing cities, including Stockholm and Malmö, with mass timber production to deliver projects on time: “Mass timber is a game-changer for urban rentals—combining speed, high quality and a dramatically lighter carbon footprint,” said Anna Lindberg, Dermome’s head of sustainability. “As Sweden’s cities grow, wood-based construction will be key to meeting green building targets.”
Wood Central understands that leasing for the new flats will open later this autumn, with the first residents expected to move in during 2026, ahead of full completion slated for 2027. Ground-floor retail units will accommodate cafés, convenience shops and service providers, creating a vibrant, mixed-use community hub.
