Foreign direct investment into Swedish real estate : How has it changed during the 2000 - 2010 period?

Abstract: The purpose of this research is to generalise the results of the 2000-2010 period development of the Swedish real estate market for FDI and provide a better understanding of it from the point of view of foreign investors. The approach used in the thesis was based on deductive method assuming previous theory and research. Quantitative data relies on both scientific and media sources, qualitative empirical data – on questionnaires filled in by companies involved in real estate FDI process. The study addresses the changes of macro and micro economical issues, cultural, political, geographical patterns, changes of market characteristics, investor preferences and provides an overview of both classical investment theories and FDI theories. The results of current research show that within the indicated 10-year period the major changes in the Swedish property market where: increased difficulties with obtaining finance, higher selectiveness when choosing investment objects, increased use of structured deals, greater importance of diversification, decreased risk and yield levels. The thesis originates from the prior research in the field by KTH scholars - Axelsson, Victrorin (1999), O’Connor (2003) and Falk, Olsén (2009). The main contribution of the current research is adding to the knowledge about real estate FDI and quantifying the changes during the long time-horizon – 2000-2010 period considering both "economical rationale" and "behaviour rationale". Present research may be useful for further investigations in the property FDI area, can provide information for foreign investors about the historical development of the Swedish market and be helpful for analyzing or choosing FDI market strategy.