Almost every commercial lease in Sweden contains an index clause (indexklausul) that raises the rent every year. In years of low inflation it is barely noticeable, but in 2023 it pushed many office rents up by nearly eleven percent in one go. Here we explain how rent indexation works, how the supplement is calculated, what the law requires and what you can negotiate.
Short answer: Indexation means the rent follows the consumer price index, CPI (KPI). The supplement is calculated once a year based on the October CPI and applies from 1 January. An index clause is only valid if the lease is for a fixed term of at least three years.
What is rent indexation?
Indexation (indexreglering), index adjustment (indexuppräkning) and index clause (indexklausul) are three words for the same thing: a term in the lease that makes the rent change in line with prices. The purpose is for the rent to keep its value over a lease term of several years. In Sweden, CPI with 1980 as the base year, published monthly by Statistics Sweden (SCB), is almost always used.
What does the law say?
The main rule in Chapter 12, Section 19 of the Land Code (jordabalken) is that the rent for commercial premises must be a fixed amount stated in the lease. The rent may be tied to an index only if:
- the lease is for a fixed term, and
- the term is at least three years.
This is one of the main reasons office leases are so often signed for exactly three years, with three-year extensions. In a shorter lease, or one that runs until further notice, an index clause is not valid.
How the rent index adjustment is calculated
Most landlords use the Swedish Property Federation's index clause (Fastighetsägarnas indexklausul). It is built on three terms:
- Base rent: the rent, or the part of the rent, that is indexed.
- Base index: the October CPI that the base rent is pegged to. Under the standard clause, if the lease starts in the first half of the year it is October of the previous year, and if it starts in the second half it is October of the same year, unless otherwise agreed.
- October index: the October CPI for each following year.
The formula is:
Index supplement = base rent × (October index − base index) / base index
The supplement is always calculated against the base index, not last year's rent, and applies from 1 January the following year.
Worked example
CPI for October 2024 was 415.51 and for October 2025 it was 419.35, an increase of 0.92 percent. With a base rent of SEK 600,000 a year pegged to October 2024, the supplement for 2026 is:
600,000 × (419.35 − 415.51) / 415.51 = SEK 5,545
The rent for 2026 is therefore SEK 605,545, plus VAT and other supplements.
How much rents have been indexed
| Rent year | CPI change, October to October |
|---|---|
| 2023 | 10.9 percent |
| 2024 | 6.5 percent |
| 2025 | 1.57 percent |
| 2026 | 0.92 percent |
An office that cost SEK 600,000 a year in 2022 therefore cost more than SEK 100,000 more per year in 2024, without anything else in the lease changing. That is why the index clause should be factored in when you compare what different offices cost.
What you can negotiate
- Share that is indexed. The whole base rent or only part of it, for example 75 percent.
- Cap. A maximum annual increase protects you against years like 2023.
- Fixed increase instead of an index. A fixed annual percentage, or a stepped rent with set amounts per year, gives both parties predictability.
- Base index. Check that the base index matches when the rent was actually negotiated.
- Floor. The standard clause states that the rent never falls below the base rent, even if CPI drops.
Your negotiating position is strongest before the lease is signed or when notice is given for a change of terms. Read more in the guide on terminating a commercial lease.
Supplements that can also change
The index clause applies to the base rent. Supplements for heating, electricity, cooling and property tax often follow actual costs and change separately. Ask the landlord for a summary of what the total rent was over the past two years, not just the base rent. We go through every item in the checklist for renting an office.
Frequently asked questions
What does indexation mean?
That an amount, here the rent, is adjusted in line with an index, almost always the consumer price index.
When does the rent go up?
On 1 January each year, based on the CPI for October of the previous year.
Can the rent go down if CPI falls?
The supplement can decrease, but under the standard clause the rent never falls below the base rent.
Can a landlord include an index clause in a one-year lease?
No. An index clause is only valid if the lease is for a fixed term of at least three years.
How much are commercial rents indexed in 2026?
Under the Swedish Property Federation's index clause, the CPI change is 0.92 percent, measured from October 2024 to October 2025.
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