Diffusion of Condominiums : Case of Dalénum

Abstract: This master thesis addresses the latest form of tenure in Sweden. More specifically we have investigated condominiums from a completed major project in Stockholm, including stakeholders as Developer, Bank, Insurer, Legislator, and the Owners of Condominiums. The overall diffusion of the form of tenure has so far been lower than expected, and the reason for this has not been determined. Our research was made with the intention to identify the main obstacles for the diffusion of condominiums in the Swedish housing market.. In order to do so, we investigated the differences between condominiums and cooperative apartments. The research was conducted through an initial pre-study including interviews with five different experts within the area. Subsequently, a case study on the completed condominium project of Dalénum was made, including interviews with an additional 10 interviewees among the most important stakeholders. In addition to interviews, an extensive real estate appraisal was made, and the results were analyzed through our theoretical framework. Findings from the research suggest that the main differences between the forms of tenure concern the homeowners. More precisely the differences appear in the Capital Structure, the Ownership, and the Ability to Rent out. Moreover, four main obstacles for the diffusion of condominiums were identified as. Catch-22, Costs & Regulations, Neighborship, and Lack of Interest.