The Kronandalen project in Luleå is paused – too expensive to build

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Kronan and Kronandalen are to become Luleå’s largest residential area with over 7,000 residents and so far a good quarter of the project has been completed or is in the process of being built.

“We need housing now”

But since a number of real estate companies with land instructions are considering pausing construction due to the high raw material prices, rising interest rates and inflation, it looks like housing construction will slow down.

– It is clear that it is boring. Housing is now needed before the move-in that is required for the green industrial transition and it needs to happen quite quickly. If there is a break, we will have to deal with it, but we also have other players who are waiting for a land grant and to come in and build in Kronandalen , says Luleå municipality’s main project manager, Emma Hurtig.

“No impending disaster”

She will now discuss the situation with representatives of the real estate companies that want to postpone their housing projects, mainly due to the increase in the price of building materials.

– We have to find out where they stand and how they view their land instructions. It is the politicians who then have to decide whether they are to be extended or whether other companies receive land allocations. We have to handle this in the best way possible. I don’t see a disaster coming, absolutely not, says Emma Hurtig.

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