Local Cooperation among property owners: The story of the Swedish BID model

Improving the overall safety, attractivity or quality of life in urban areas or neighbourhoods is often difficult for the individual property owner to do alone. One can perform safety measures on the property or renovate the apartments according to the latest standards, but if the neighbouring properties do not conduct the same measures, it can be difficult to improve the attractiveness, sustainability or safety of the area.   

To overcome this, a model for cooperation among property owners is spreading in Sweden with inspiration from the Business Improvement Districts (BID) concept that was developed in North America in the first half of the 1900s. There, BID gathered property owners and business owners to collaborate in making city centres more attractive, focusing on coordinating marketing efforts, community activities or representing the local community in meetings with politicians.

The Swedish adaptation of the BID model differs from its counterparts in other parts of the world, as Swedish BIDs are predominantly found in suburban areas and are more focused on cooperation among property owners.  

This grassroots effort, inspired by international placemaking principles, is aiming towards transforming areas into vibrant, attractive, and sustainable neighbourhoods that stand as a testament to the power of local cooperation among property owners.  

The suburban districts where BIDs are established in Sweden, often experience unsafety among its inhabitants, lack of community engagement or are categorised as socioeconomically weaker. Here, the BID presents an alternative way forward, where property owners and stakeholders collaborate to tackle these challenges head-on.  

The BIDs are formed voluntarily, with property owners entering into agreements to collectively fund and coordinate initiatives that improve their shared neighbourhood. These BIDs take on the form of associations, where all members contribute financially to a common pool. Members are both public and private property owners, as well as condominium associations.

A key element of any BID is the shared financial responsibility among the property owners and all members are required to contribute to the common budget, ensuring that the efforts are sustainable and that every member has a vested interest in the area’s success. This shared investment encourages collaboration, with property owners working together to create long-term solutions for their neighbourhoods.

By working together, property owners gain a powerful platform to improve not only their individual properties but the entire area’s attractiveness, safety, and livability.  

The activities within Swedish BIDs are diverse, and tailored to the specific challenges of each area, but they share a common goal: to create a better, more sustainable future for the neighbourhood. These initiatives are built around the core principles of improving public spaces, fostering community inclusion, and increasing the attractiveness of the area, topics where property owners together can play an important role in contributing to. While individual property owners may struggle to make an impact on their own, through collective action, they can achieve far greater results.

From improved street lighting to organised cultural events, these local collaborations bring a sense of pride and belonging back to communities that have long been neglected. Down below you will find three concrete examples of BIDs in Sweden; how they are organised and what activities they initiate.   

In the suburb of Flemingsberg, just outside Stockholm, the local BID association brings together property owners to implement physical improvements such as improved lighting, added green spaces, and general beautification projects. Through regular citizen dialogues and walking tours, the association listens to local tenants’ concerns about safety and then works to address these issues through tangible actions.  

For example, in Flemingsberg, the BID organises after-school programs for local children, aiming to support their educational growth and ensure more students graduate from elementary school. It’s not just about the physical environment, but also the social fabric of the community. The BID helps to create an environment where young people feel safe, supported, and engaged, fostering a sense of belonging that is key to sustainable neighbourhood development.  

Another example can be found in Järva, a district in northern Stockholm. Established in 2007, the BID here was initiated by a public property owner, to create a safe, attractive, and inclusive neighbourhood. Over time, the association has attracted both private and public property owners, as well as condominium associations, all working together toward shared objectives.  

In Järva, among other things, the BID focuses on regular neighbourhood security inspections to identify areas of concern and address them quickly. A security inspection is a systematic mapping of the property, covering everything from common areas to stairwells, and the outdoor environment, and is offered to the BID’s members. The security inspection helps identify elements that affect the properties’ overall safety and security and provides the property owner with a checklist of measures they can take.

When The Swedish National Council for Crime Prevention evaluated the effects of security inspections on the rate of burglaries in the area, which previously had been a problem for property owners, they found a clear correlation between the measures taken and the decrease in reported crimes in the area. The results were clear.

Properties owned by property owners who were members of the BID, had conducted security inspections and taken the necessary measures, were less vulnerable to break-ins compared to other properties in the area. This shows that collective efforts to increase security among several property owners in an area, can have an impact on reported crimes.  

Additionally, the BID organises youth employment programs during the summer months, offering local teenagers the opportunity to engage in meaningful work. The association also organises seminars to its members and their staff gain important information on pressing issues like domestic violence and recycling, empowering local property owners to understand and address the complex social and environmental issues affecting their neighbourhoods.  

Despite its success in fostering safer, more inclusive, and sustainable neighbourhoods, the Swedish BID model is currently under threat from proposed legislative changes. These changes suggest making local cooperation mandatory rather than voluntary. This shift risks undermining the collaborative spirit and local adaptability that are central to the model’s effectiveness.

By imposing compulsory participation, the proposal could weaken the trust and shared commitment among property owners and stakeholders, which are key to achieving long-term, sustainable improvements in neighbourhoods. Preserving the voluntary nature of the Swedish BID model is crucial to ensuring its continued success in addressing urban challenges.  

The Swedish approach to BIDs is an inspiring example of how communities can come together to transform their neighbourhoods. While the challenges facing these areas are significant, the BID model offers a hopeful vision of what is possible when property owners work in harmony.

Not only can BIDs help to increase property values, but they also foster a sense of community and safety that can make these areas more desirable places to live and work. In a country where inclusion, sustainability, and well-being are central to the social fabric, the BID model is proving to be a powerful tool for building a more attractive, inclusive, and prosperous future for all.  

If you want to learn more about BIDs in Sweden, the Swedish Property Federation has gathered information on their webpage and written a report on the topic in Swedish.

More information can also be found on the Swedish National Board of Housing, Building and Planning’s website.

Written by Jonas Calander and Emmanuelle Causse, UIPI – International Union of Property Owners.
Reviewed by Rikard Silverfur at Fastighetsägarna/Swedish Property Federation.