Risk control in non-subsidised housing development: Value change risks caused by changes in macroeconomics
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School of Engineering |
Master's thesis
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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, OskariThesis advisor
Harjunen, OskariKeywords
hankekehitys, asuntoprojektikehitys, asuntorakentaminen, riskienhallinta, arvonmuutosriskit, makrotalous