As a result of increased property prices on apartment buildings in Halmstad many local investors thinks that the market behaves illogical. This because these investors can’t find any profitability in many real estate transactions. The valuation between different investors on the same object therefore goes their separate ways. One example of this is a property in central Halmstad which starting price was about 23 million SEK. The purchase price of this object ended on about 52 million SEK, and under the bidding many investors considered the object as overvalued around 30 million SEK.
Our problem formulation follows which factors an investor will consider in the valuation process when investing in an apartment building. The intention with the study is to describe those factors and then explain which variables that’s relevant in a buying process.
The study resulted in a case study where we interviewed real estate investors in Halmstad personally. The choice of interview persons was based on an assessment of their experience in the property market and the types if investment they favour. This resulted in interviews with Wennerholms, Fastighetsstaden and Jana Fastigheter which all are larger than the average property investor in Halmstad.
By first treating theories that we considered relevant we shaped interview questions to gather empiricism. During the study complementing questions have been done to improve the reliability.
We combined the empiricism with our theories in intention to get a result. The study shows that there are many factors that affects the buying decision. From abroad the information can we distinguish that the strategy affect the price in a big way. This because the strategy is individual and combined with a matching object the valuation can therefore have a very high individual self-worth, which means the property valuation can get very high.