Development: Real Estate Develoment in a Recession Market

Student thesis: Master thesis (including HD thesis)

  • Jens Højgaard Pedersen
The classic approach to a thesis in management in the construction industry would normally include head-shaking phrases on the low ef-ficiency within the industry. This thesis differs by focusing on real estate development, which has some similarities with the manufacturing industry. This similarity is the basis for a reflection on how business creation in construction, translates into higher product quality.
Real estate development is, in Danish terms, a relatively unknown part of the construction industry, and therefore the concept is described. In times of financial crises, the market has done business creation very problematic for real estate developers. In addition, the thesis describes both production theories and strategic considerations which are assessed against the industry, through interviews with three actors. These interviews also contribute to the description of the current market situation.
After the description and analysis of the market, the thesis focuses on business development and on how to create value for the end users, when these are not known.
Initially the concept of value, based on the product value parameter, which comprises respectively market value and utility value, is defined. The utility value is what gives the end user a perception of value for money. Through a comparison with Kanos quality model, the end-user values are split into respectively basic requirements, performance requirements and attractive properties. The basic requirements must be met if the end-user shouldn’t have a poor perception of value. The performance requirements, gives the end-user a 1:1 perception of value for money, while the attractive properties gives the end-user a feeling of a great value for money ratio.
Focusing on the lack of end-users, a general end-user model is pre-sented. The model consists of experience data, market data and research data. Experience data is collected inside the company and through customer satisfaction surveys of users of previous projects. Market data is collected through customer segmentation and surveys of potential users. Experience and market data is expected to generate the user requirements, respectively as the basic requirements and performance requirements. To produce the attractive properties, a closer collaboration with research institutions is suggested. Through these the future building solutions can be generated as attractive properties and thereby enhance competitiveness.
Finally, the significance of user involvement in the future industry and in construction in general, is considered. In addition, the discarded value paradigms are compared to the development of the industry.
Publication date5 Jan 2011
Number of pages70
ID: 43329814