King's Shocking Rent Hike on Djurgården: No Room for Negotiation

The King has dramatically increased the lease fees for his residences on Djurgården in Stockholm. The fees have risen by hundreds of percent, affecting well-known and wealthy individuals such as Abba's Benny Andersson and several prominent businessmen. In total, about 45 households are impacted.

"We are shocked, the Royal Djurgården Administration refuses to negotiate," says Patrik Engellau, a resident of the exclusive area.

The Royal Djurgården Administration (KDF) terminated the lease contracts with the residents of Djurgården in Stockholm a year ago. KDF, which manages the King's right of disposition, increased the lease by around 350% in several cases.

The residents were upset and appealed. Among them are celebrities and prominent figures in the business world, such as Benny Andersson from Abba, several members of the Bonnier family, and business profiles like Tom Dinkelspiel and Per Bystedt.

Appeals Rejected

However, the Rent and Tenancy Tribunal rejected all appeals and confirmed the lease increases. For Benny Andersson and his wife Mona Nörklit, the fee rises from 112,132 SEK per year to 360,000 SEK, while journalist Jonas Bonnier faces an increase from 62,856 SEK per year to 290,000 SEK.

Both these lessees declined to comment.

"The Rent Tribunal establishes the lease terms in each lease agreement to apply from April 1, 2024," the decision states.

"I get an increase of 11,000 SEK per month. It's a lot for me; I don't have nearly as much money as others in the area. For me, it will be tough," says Expressen journalist Cecilia Hagen.

She faces an increase from 84,476 SEK per year to 350,000 SEK but shares the burden with another lessee at the same address.

More Than Doubled Lease

Catherine and Patrik Engellau live in a small house on a plot that sees an increase from 201,420 SEK to 430,000 SEK per year. The increase affects several other small homeowners on the same property.

Patrik Engellau, who was previously chairman of the Royal Djurgården Housing Lessees Association, is strongly critical of the large lease increase, claiming that the Djurgården Administration has overridden the residents by refusing to negotiate.

"It's a shock increase. They refuse to negotiate; they haven't even talked to us. We are tenants; we rent the land. Imagine if tenants had to face an increase of several hundred percent," he says and continues:

"It was the same during the last increase ten years ago. Even then, they went out with demands of hundreds of percent, but we managed to reduce it to an average of 33%. No one thought that type of demand would come now."

"Several May Be Forced to Move"

According to Patrik Engellau, an agreement was reached with the Royal Djurgården Administrations that future increases would follow the lease price index, a government index.

"The leases have been raised every year according to the index, so we shouldn't have any increase at all now. Several who live here say they may be forced to move if the increases go through," he says.

He explains that the residents plan to appeal the Rent and Tenancy Tribunal's decision, but it is expensive and complicated.

Expressen has sought the Royal Djurgården Administration via the court's information department.

King's Right to Decide

The King's right to decide who should live in houses and apartments on royal palace areas like Djurgården and Haga dates back to the 1800s. The so-called right of disposition applies "for eternity," meaning forever.

Special rules apply to those who rent from the King. Among other things, they give up the right of possession, which exists in the rental law.