Hemnet Group AB, Sweden’s largest property-listing platform, is confronting one of the most turbulent years in its public history. Despite a brief rally late last week, the company’s stock remains one of Europe’s steepest decliners in 2025, reflecting growing concerns about shrinking property listings, heightened competition, and the rising cost of maintaining its dominant market position.
The company’s shares jumped 7.1% on Friday, marking their biggest single-day gain since April, after Hemnet outlined two new initiatives aimed at countering free or low-cost listing alternatives. Even with the positive reaction, the stock remains down nearly 50% since January, putting it on track for its worst annual performance since its 2021 initial public offering. The recovery bump was not enough to reverse a year defined by dwindling seller activity and speculation that Hemnet’s once-unshakeable dominance may be showing cracks.
A Tough Year for Sweden’s Listing Giant
Hemnet has long been a cornerstone of Sweden’s housing market, advertising nine out of every ten homes sold in the country. Its powerful brand recognition, broad user base and status as a household name have made it the first stop for potential buyers and curious browsers alike. But the housing slowdown of 2025 has challenged even the most established platforms.
The Swedish property market has been stagnant, weighed down by higher mortgage rates, subdued demand, and a reluctance among homeowners to list their properties during a period of price uncertainty. Listings have thinned considerably, putting pressure on platforms whose revenue is tied to volume as well as the premium features sellers choose.
Hemnet has also faced a new wave of competitors, many of whom offer cheaper or even free listings, gaining appeal among sellers concerned about rising advertising costs. The firm’s reliance on pricier listing packages, which have been key drivers of revenue, has drawn criticism from both real-estate agents and homeowners who argue the fees no longer match the service value.
JPMorgan Chase & Co.’s Marcus Diebel recently downgraded the stock, calling Hemnet “particularly vulnerable to increased competition.” The bank cautioned that it would take an increased investment in technology and marketing to sustain the leadership in a changing marketplace when the headwinds of revenue are already significant.
Aggressive Pricing Strategy Faces Growing Pushback
The premium pricing system at Hemnet has traditionally contributed to profitability. The company saw a rise in average revenue per listing of over 350 percent between 2019 and 2024, driven by packages that guarantee better visibility, targeted promotion, and rapid connection with the buyer.
However, the plan has also attracted claims of price gouging. As affordability pressures hit the housing sector, many sellers have begun questioning whether Hemnet’s upgrades provide enough added value to justify the rising costs.
Real-estate executives have not minced words. Bjurfors Real Estate CEO Irja Amolin said that repeated price hikes were prompting both agents and clients to reconsider whether Hemnet is still “necessary” for a successful sale. She pointed out that sellers are increasingly choosing to sell properties off-platform or through free-listing sites like Booli, which state-owned mortgage lender SBAB manages.
The change indicates that even though Hemnet is still the biggest and most powerful platform, the market trends can be changing faster than the company had thought.
Hemnet CEO Jonas Gustafsson justified the approach of the platform by highlighting that sellers have the option of numerous packages that were created to fit various budgets. The company, he said, offers “everything needed to complete a sale” at lower tiers while still providing added visibility for sellers who want it.
New Strategies Aim to Calm Investors
Friday’s stock surge followed Hemnet’s announcement of two new initiatives intended to restore confidence. The most significant move was the introduction of a “sell first, pay later” model, set for broad implementation in early 2026. Under this approach, sellers will only pay for listings after their property is sold—a departure from Hemnet’s upfront-fee system.
Analysts say the shift could make the platform more appealing to price-sensitive sellers who have increasingly opted for free alternatives. Deutsche Bank’s Silvia Cuneo called the new strategy a “positive first step” in addressing Hemnet’s competitiveness concerns, though she cautioned that the company’s long-term outlook still depends on broader structural changes within Sweden’s housing market.
Even with the stock’s rebound, sentiment remains mixed. More than 60% of analysts tracked by Bloomberg have issued hold or sell ratings, reflecting concerns that Hemnet may face a prolonged recovery. Still, the consensus target price for the stock suggests nearly 70% upside potential—an indication that many believe the business remains fundamentally strong despite the current challenges.
A Market in Transition
Hemnet’s struggles are emblematic of a property market undergoing rapid transformation due to technology, shifting consumer behavior, and broader macroeconomic pressures. Platforms that once dominated through network effects now face growing pressure from leaner, cheaper, or AI-enhanced competitors.
In Sweden, the rise of alternative listing channels is reshaping seller expectations. The assumption that a property must appear on Hemnet to attract buyers is no longer taken for granted. In the meantime, a volatile housing market, with careful consumers, flatter prices, and slow sales listings, presents a challenging background to a platform that needs steady market action.
Simultaneously, the growing power of artificial intelligence is compelling real-estate platforms across the globe to invest in automation, analytics, and tailored user experiences to a large degree. In the case of Hemnet, this presents a strategic dilemma: either go on a rampage to be top of the pack at the expense of losing cost-sensitive sellers or wait too long and lose some market to more malleable rivals.
Looking Ahead
The final weeks of 2025 find Hemnet at a crossroads. Its impressive brand strength, massive user base and deep integration in Swedish real estate transactions give it a foundation that rivals struggle to match. But the company’s steep stock slide underscores the urgency of adapting to a landscape defined by cost-sensitive consumers, new digital competitors and a weak property cycle.
Whether the “sell first, pay later” model marks a turning point remains to be seen. Investors and analysts will be watching closely in early 2026 as the company rolls out its new initiatives and navigates a marketplace in flux.
For now, Hemnet’s challenges are far from over—but its attempts to address them have at least opened the door to a potential recovery as the company prepares for a year when competition will be fiercer than ever.