Title: Influential factors in the decision and investment process regarding the tenure condominium.
Authors: Anna Olsson & Karolina Kristensen
Supervisor: Titti Eliasson
Examiner: Eva Berggren
Course: FÖ6021: Bachelor thesis in business administration 15 credits
Seminar date: 2016-05-30
Problem statement: What factors influence construction and real estate companies in their decision and investment process when choosing the tenure condominium?
Background: There are three forms of tenure of apartment in Sweden, which is rented apartment, cooperative apartment and condominium. Condominium became a form of tenure in Sweden year 2009 and represent one percent of the apartment stock. Condominium is a form of tenure with many opportunities where you own your apartment and thus are able to influence your accommodation. The low number of condominiums led to our interest to study construction and real estate companies’ thoughts about form of tenure and investment decisions.
Purpose: The purpose of this study is to analyze decision-making and investment process in construction and real estate companies when building new housing, with focus on the form of tenure condominium.
Method: The study is based on a qualitative method where four interviews have been conducted with people who have insight into the decision and investment making in Christianstads Fastighets AB, Växjöbostäder AB, Öckerö Fastigets AB and Skanska.
Conclusions: The thoughts and reasoning about the form of tenure condominiums are different in construction and real estate companies. There are directives from board of directors and owner that specifies which form of tenure the housing will have. These directives are subject to be affected by external factors. Laws, authorities, banks and insurance companies are external factors that complicate the investment process. Cash flow and raising capital are two parameters that affect the choice of the tenure condominiums.
Keywords: Decision making, real estate, investment decision, condominium.