Factors affecting the purchase decision of apartments                                                    

Design/methodology/approach - The research in this paper is based on telephonic interviews and internet based survey with recent purchasers, who bought a home in the past 1 year and prospective purchasers looking to buy an apartment in the coming one year. They belonged to number of locations across all metropolitan cities of India - Delhi, Mumbai, Bangalore, Kolkata and Chennai. The data were analysed using factor analysis to identify the criteria in an apartment that buyers value the most. This research was done across all ages and irrespective of their intention of why they bought or if this was their first purchase. Further, Cluster analyses was used to determine clusters and one way Anova was used to determine the factors that hold different value to different clusters of people. Discriminant Analysis was used to determine any difference in behaviour of first time purchasers with others.

Findings - The findings in this paper revealed that issues signifying “affluence” accounted for approximately 27 percent of the choice of housing by Indian buyers to purchase apartments in metropolitan India. Also, Cluster Analysis revealed that demographically different set of buyers differ significantly in their attitude towards “Financial” factors. Discriminant analysis revealed that first time buyers give significantly more importance to “Financial” factors like “House price”, “Income” where they give much lesser importance to “Builder reputation” and “Status of neighbourhood”.

Date:27-03-2015