India are recovering faster than those in the US and the UK. The sector is expected to attract around US$ 12.11 billion of investments in the next five years. Residential space comprises almost 80% of the real estate developed in the country. There is a shortage of 22.4 million dwelling units according to the Tenth Five Year Plan. 80 to 90 million housing units will have to be constructed over the next 10 to 15 years to rectify this, with the majority of them for the middle- and lower-income groups. It is for this reason that residential properties in India, particularly in Mumbai and Delhi, are viewed as very good investments as per a study by PriceWaterhouseCoopers (PwC) and Urban Land Institute, a global non-profit education and research institute.
In the 2009-10 budget, a tax holiday on profits was granted to developers of affordable housing (units of 1,000-1,500 sq ft). This exemption was instituted for projects that started from 2007-08 onwards with a deadline of completion of March 1, 2012. US$ 207 million was also allocated to grant a 1% interest subsidy on home loans up to US$ 20,691 with the caveat that the cost of the home should not be more than US$ 41,382. This was expected to further help the housing sector.
An apartment is a residential unit that forms a division of a building. It can be either owned or rented. Living in apartments is gaining popularity in India. 217 townships across India are in the building plans for the Sahara Group. Their allure lies in the convenience that they offer in terms of safety and security and maintenance of utilities like electricity and water. A central maintenance system obviates the need for hiring outside help for minor problems like leaking taps or electric short circuits. Stand-alone homes also require incurring additional costs like buying/leasing land, licensing, duties, etc. Apartments enable maximization of space utilization and reduce demand on public resources. People are also able to avail of additional amenities like gymnasiums, swimming pools, etc. at affordable prices.
There is a gap in the literature, however, with regard to the value drivers that dictate purchase decisions of residential property in the country. Similar studies exist for other countries but were found wanting in the Indian context, especially when it comes to apartments. Through this paper, we aim to establish which factors dictate purchase decision and to what extent. We shall also analyse these preferences with respect to the demographic profiles of our respondents and hence arrive at a deeper understanding of these issues. In particular we shall determine the difference in purchase decisions of first time buyers as against the others.
We see immense utility for our paper, especially for builders and property dealers who can use our findings in structuring their own business activities in terms of deciding focus areas of their future projects as well as appropriately deciding their target segment.
RESEARCH BACKGROUND AND HYPOTHESIS 研究背景与假设
Even though consumer behaviour is generally assumed to be an important part of real estate valuation, buyer preferences are generally not considered during the valuation process. It is basically reduced to the conf
