Risk control in non-subsidised housing development: Value change risks caused by changes in macroeconomics

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Volume Title

School of Engineering | Master's thesis

Date

2024-08-27

Department

Major/Subject

Urban Studies and Planning in Real Estate Economics

Mcode

Degree programme

Master's Programme in Urban Studies and Planning

Language

fi

Pages

97

Series

Abstract

The topic of this research was risk control in non-subsidised housing development, which focused on value change risks caused by changes in macroeconomics. The research was done by a combination of qualitative and quantitative methods: there were interviews for 14 actors in the business and a supportive, mostly statistical, information report. There were three main research questions: (1) what kind of value change risks are related to non-subsidised housing development caused by changes in macroeco-nomics, (2) what kind of procedures actors use to protect themselves from those risks, and (3) how those procedures could be further developed. The main findings were that value change risks are related eight different areas in the housing development: 1. land acquisition, 2. development, official and planning costs, 3. finance, 4. construction costs, 5. sales price of the project, 6. operative costs of the building, 7. warranty costs and 8. risks caused by political decision making in governmental level. The statuses of the risk protections in these areas are described in the study. To further develop the procedures, actors should (a) use scenario thinking more, (b) enhance the use of data by digitalization and AI technology so, that updated knowledge is always available and (c) analyse the business environment with changes in it and big risk factors.

Description

Supervisor

Harjunen, Oskari

Thesis advisor

Harjunen, Oskari

Keywords

hankekehitys, asuntoprojektikehitys, asuntorakentaminen, riskienhallinta, arvonmuutosriskit, makrotalous

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