Markets

Bonava’s Markets Are Developing Favourably
Bonava’s markets are progressing positively, driven by rising disposable incomes, lower interest rates and an undersupply of modern, sustainable housing. At the same time, the market is local in nature, with numerous players, intense competition and rapid developments. Those who navigate the landscape effectively have significant opportunities to capitalise on the strength of the market.

Our Markets Are Attractive
Population growth and urbanisation, combined with years of low residential construction activity, have resulted in housing shortages in areas with high inward migration. This has led to strong demand and rising prices for homes in many regions. Government initiatives to increase housing supply in selected areas are also creating favourable conditions for residential developers.

Our Markets Are Local
Bonava operates in six countries and across 20 sub-markets. These markets vary significantly—not only between countries but also between regions. Some markets are highly fragmented and are likely to consolidate over time, while others are dominated by a few major players. Laws, regulations and housing requirements differ between countries, regions and even municipalities. This calls for product and process standardisation at an appropriate level, along with tailoring expertise to meet local market demands in order to operate efficiently. Furthermore, ways of working differ across markets—ranging from how subcontractors operate, to how land is acquired and how customers make their payments.

Market Dynamics Are Evolving
Residential development is characterised by long lead times. It can take several years from the initial land investment to residents moving into their new homes. This demands long-term thinking, while simultaneously requiring developers to adapt to a constantly changing market environment. The position of both consumers and residential developers in the market is shifting. Evolving consumer preferences are placing greater importance on the home and on sustainability—but it is primarily investors and financial institutions that are driving the demand for more sustainable housing. Residential developers like Bonava are facing increasing competition. Over time, this will likely lead to market consolidation. Simultaneously, new business models, concepts and partnerships are emerging in response to changing customer expectations.