SWEDEN —A new mixed-use development in Umeå, Sweden, is moving into construction after Peab was commissioned by Bonava Hagamarket AB and Bonava Sverige AB under two turnkey contracts with a combined value of SEK 121 million. The scheme covers both a grocery store and residential construction within the Hagaliden district.
The residential element, known as Brf Motorn, will comprise two tower blocks containing 45 tenant-owner apartments. The development also includes a terraced courtyard positioned above the Coop grocery store, together with landscaping and parking areas at ground level. Construction of the residential and retail components is scheduled to begin in September 2026, with completion targeted for May 2028.
Hagaliden is being established on a former car dealership site, with the redevelopment intended to create a residential area incorporating local services. The transformation represents a shift in land use from an automotive-oriented commercial site toward a mixed urban district combining housing, retail and associated site infrastructure.
Sustainability requirements are incorporated into the residential component, with the apartments planned for certification under The Swan version 4. This places the project within Sweden’s market for certified residential development, where environmental performance and resource considerations are increasingly integrated into new housing schemes.
The development is relevant to Umeå’s construction and property markets because it combines several building functions within one urban redevelopment. Contractors, construction-material suppliers, engineering firms and property developers can be affected by the continued conversion of underused or commercially oriented land into higher-density residential and mixed-use districts.
For Peab, the contracts add SEK 121 million to its Construction business area, with the order scheduled for registration during the third quarter of 2026. The structure also provides visibility beyond the initial construction scope through a future option for a second residential phase, Brf Cylindern, although that phase is not included in the current contract value.
Peab is a Nordic construction and civil engineering group operating in areas including building construction and infrastructure. Bonava is a residential developer operating in European housing markets. The Umeå project brings the two companies together on a development combining residential construction, retail space and site works within the emerging Hagaliden district.
