A diversified business model that balances risk.
Bonava’s project portfolio is diversified as regards customer segments, product type and geography. Which customer segment that is buying, and which type of housing units that are in demand, vary over time. Moreover, the macroeconomic situation may differ among countries. Our balanced business model provides us with greater flexibility and a lower risk profile.
Consumers and investors
Bonava’s business targets both consumers and investors. The core operations are developing and selling homes to consumers. At the same time, projects targeted at investors constitute an attractive complement by promoting an improved risk and cash flow profile. In many markets, investment projects are paid in advance while consumers often pay upon occupancy. In our largest market, Germany, consumers also pay in advance.
Product mix
Our offering contains both multi- family housing and single-family homes, and we offer different types of tenure. Our product mix promotes risk reduction through variation in margins and volumes as well as sales and construction rates. A mix of product types increases the possibilities of meeting demands that change over time, being a reliable long term partner for municipalities, and being relevant in larger areas.
Geographic spread
With a geographic presence across 19 regions in six countries, we can address local changes in demand by investing in the markets that generate the best returns. Bonava routinely monitors and evaluates macroeconomics and other criteria in its markets in order to ensure that we are operating in the markets that are most attractive to the company’s long-term business.
