Bachelor of Science, Construction and real estate economics at the University of Halmstad, Sweden, 2012. Author: Emilia Bjuvensjö and Emma Davidson Advisor: Sven-Ola Carlsson
Examiner: Kent Sahlgren Title: Condominiums – A study of what factors are preventing condominiums from having a breakthrough on the Swedish housing market.
In Sweden condominiums have been discussed over and over again during the past 100 years. The government decided that on the 1st of May 2009 they would introduce a new kind of housing-form, condominiums. Ever since the new law came into force, no major changes have been done in the Swedish condominium market. The condominiums look like townhouses stacked on top of each other. They major difference between condominiums and apartments is that the owner of a condominium has full ownership while the owner of an apartment has a type of tenancy which allows them to live there, without full ownership. The owner of a condominium may rent it to an outsider without asking the board for permission, compared to an apartment where the owner will need authorization from the housing association and even then only allowed to rent it for a limited time. Today it is still only a fraction of all the apartments built in the Swedish housing market that are condominiums.
The purpose of this thesis is to describe and explain the barriers that are preventing condominiums from having a breakthrough on the Swedish housing market. We also want to find out why construction companies decline building condominiums and only build apartments.
While looking for an answer to our problem, we have been using substantial and reliable literatures consisting of articles, books and the internet. We have then followed up our theories with visits and telephone interviews.
In conclusion, the result of our investigation has shown that the condominiums progress on the housing market has been slowed by the recession we were in when the condominiums first came to the market. The lack of knowledge and information on both the supply side and the consumers is another big reason. A third factor is that the condominiums are not allowed to form in already existing homes, but must be newly produced. There are many companies that feel they can’t build in the bad times that exist and therefore choose to abstain because of the risks and unknown market that the condominiums exist in.
2012. , 51 p.