Derome has started the construction of 177 rental apartments in timber in Flatås, Gothenburg, Sweden. The investment amounts to Euro 500 million and marks one of the country’s largest residential timber projects, according to Derome.
The development includes two buildings of five and six floors with a timber frame. Derome states that timber construction can reduce a building’s climate impact by 40% compared with traditional methods using steel or concrete.
The project also includes commercial premises on the ground floor. The first tenants are expected to move in during 2026, with completion planned for 2027. Leasing of the apartments is scheduled to begin this autumn.
The timber modules are produced at Derome’s factory in Värö, near Varberg, where they are largely preassembled with flooring, kitchens, and fixed interiors before delivery to the site. The company has signed housing agreements worth a total of Euro 2.5 billion in Swedish growth cities over the past year. Image: Derome house production in Värö / Derome
Derome emphasizes that keeping the completed properties in its own portfolio demonstrates long-term confidence in the quality and sustainability of timber housing.
