SWEDEN —Peab has secured a SEK 114 million contract from Gotlandshem to construct 40 additional rental homes as part of the Riggen redevelopment in Visby, Sweden. The third phase follows the approval of the zoning plan and extends a wider transformation of the residential area in southern Visby.
The new phase will comprise six rows of terraced houses, with each residence providing four rooms and a kitchen across just under 100 square metres. Construction is scheduled to begin in the fourth quarter of 2026, with the homes expected to be ready for occupancy in 2029 under a turnkey contract.
When all phases are completed, Riggen will contain 140 modern rental apartments together with a residential care home. The first two phases account for 100 apartments and are approaching completion, with initial residents scheduled to move in during autumn 2026.
The redevelopment replaces housing originally constructed during the 1970s with homes designed around current energy-efficiency requirements. The project also retains existing greenery while introducing new communal areas and meeting places, linking the residential investment to the wider physical renewal of the neighbourhood.
The project is relevant to Gotland’s residential construction market because it combines replacement of ageing housing stock with additional rental capacity. For contractors, building-material suppliers, engineering firms and local service providers, the third phase creates activity extending through the construction period, while Gotlandshem gains additional housing capacity within an established residential area.
The continuation of the Riggen redevelopment also provides visibility into the pipeline for housing construction in Visby. With the earlier phases already progressing and the third phase scheduled to start later in 2026, the development creates a multi-stage construction programme rather than a standalone housing project.
Peab is a Nordic construction company active across building, civil engineering and related construction services. Gotlandshem is the housing organisation responsible for the residential development, with the Riggen project focused on replacing older homes and adding modern rental housing in Visby.
