Is there a connection between prices of cooperativeapartments and offices?

Abstract: Property valuation of commercial real estates is often seen as complicated. The actors think that their valuation method is the best and the results of the valuation depend on whom you ask. There are many attributes that have to be given a value and information about these attributes is often difficult to get. A possible explanation for these problems is the decline of the transparency in the Swedish real estate market over the last years. Essential information about commercial real estates is lost because they are traded as companies. This makes it problematic to make optimal valuations. The co-operative apartment market is very different from the commercial real estate market. The transparency is high and the transactions are many. The prices in the co-operative apartment market continue to rise and they are much easier to valuate. The purpose of this thesis is to see if there is a connection between market values in the condominium market and market values for office buildings. If a connection is found it may be helpful in the valuation process of office buildings. The first objective is to look at the ratio square meter co-operative apartment prices divided with square meter office building prices. The first part of the thesis is based on analogy and digital literature. Next part will consist of valuations with yield methods of office buildings and observed transactions. The result of this thesis shows no given connection between office and co-operative apartment prices, but the highest residence prices are found in the same areas with highest office prices. The ratio that is mentioned above was not useful for the purpose. The results have shown the difficulties of finding information and valuating real estate.