A

DISSERTATION

REPORT

“Factors affecting buying decision of house (real estate) among end consumer”

Submitted by

Ashish Sharma

A0102216135

MBA Marketing and Sales (2016-18)

Under the Supervision of

Mrs.Pooja Sehgal Tabeck

In Partial Fulfillment of the Requirements for the Degree of

Master of Business Administration (M&S)

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH

SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA

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 DECLARATION

Title: Factors affecting buying decision of house (real estate) among end consumer

I declare

(a) That the work presented for assessment in this Dissertation Report is my own, that it has not previously been

presented for another assessment and that my debts (for words, data, arguments and ideas) have been

appropriately acknowledged.

(b) That the work conforms to the guidelines for presentation and style set out in the relevant documentation.

(c) The Plagiarism in the report is 8 % (permissible limit is 15 %)

Date:

Ashish Sharma

A0102216135

MBA – M&S (Class of 2018)

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 CERTIFICATE

This is to certify that Ashish Sharma student of Masters of Business Administration – M&S at Amity Business
School; Amity University Uttar Pradesh has completed the Dissertation Report on “Factors affecting buying
decision of house (real estate) among end consumer”, under my guidance.

The report has been checked for Plagiarism and is within limits of acceptance.

Mrs.Pooja Sehgal Tabeck

Assistant Professor

Department of Marketing

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 ACKNOWLEDGEMENT

I would like to express the deepest appreciation to my Faculty Guide, Mrs.Pooja Sehgal Tabeck who have the
attitude and the substance of a genius. They continually and convincingly conveyed a spirit of adventure in
regard to research and scholarship, and an excitement in regard to teaching. Without their guidance and
persistent help, this Dissertation would not have been possible.

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 CONTENTS

Chapter PARTICULARS Pg. No.

1 Introduction 07

2 Literature Review 08

3 Methodology 19

4 Result 20

5 Discussion 27

6 Conclusion and Future 28

Research

7 References 29

8 Appendix 30

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 LIST OF TABLES

Table No. PARTICULARS Pg. No.

4.1 KMO and Bartlett’s Test 20

4.2 Communalties 21

4.3 Total Variance Explained 22

4.4 Component Matrix 23

4.5 Rotated Component 24

Matrix

4.6 Reliability Scale 25

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 CHAPTER-1
Introduction
The real estate sector in India assumed greater prominence with the liberalization of the economy, as the
consequent increase in business opportunities and labour migration led to rising demand for commercial and
housing space. At present, the real estate and construction sectors are playing a crucial role in the overall
development of India’s core infrastructure. The real estate industry’s growth is linked to developments in the
retail, hospitality and entertainment (hotels, resorts, cinema theatres) industries,

A buyer will consider various elements when acquiring a house. The central point are area, building size, sort of
unit, number of rooms, plan and design, enhancements, offices, see, thickness, engineer notoriety, limited time
endeavors, security, and accommodation. Different ascribes that may add to abiding decisions are working
environment availability and natural quality. These variables frame the market estimation of a property. In a
research on the determinants of purchaser goals and reservation costs of properties. The favorable circumstances
and disservices in these variables make purchaser's inspiration or demotivation in choosing a property.

The property buy is a mind boggling basic leadership process as confirm by expensive obtaining, rare buy,
danger, high self-expressiveness, and mindfulness among purchasers of huge contrasts among item choices.
Purchasers are extremely specific about the property characteristics that they are examining, in this way,
offering ascend to contrasts in trait inclinations among them. In this specific circumstance, property promoting
can be dangerous if engineers don't have an adequately total photo of purchasers' inclinations for such
properties.

The research is to know the factors that influence buying behavior of residential properties.

OBJECTIVES OF STUDY

 The objective of the research is to study people’s buying behavior of houses, the factors that affect the
willingness of buyers to buy real estate
 To understand the behavior of consumer while buying residential properties

CHAPTER-2
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 Literature Review /Conceptual Framework

Purchasing a flat is a standout amongst the most critical financial choices that individuals make, and it requires
assembling a great deal of data in regards to its highlights. Most land contemplate depends on defective, most
land analysts don't look at the impact that the assorted variety of land shoppers has on the interest for land.
Purchasers are unpredictable individuals driven by interior and outside powers, some of which are outside their
ability to control and a large number of which they are moderately unconscious (Kalia, 2015)

The present financial conditions in India have given solid stimulus to the land part, which has been seeing
elevated action in the current years. The land development story is more obvious in urban focuses, for example,
Delhi/National Capital Region of Delhi (NCR), Mumbai and Bangalore which have obtained worldwide
benchmarks and acknowledgment. (Misra, Katiyar, Dey, 2013)

Understanding factors that affect the real estate market are found to be very important and crucial due to the
inability of the Utility Theories which have been used to study consumer behavior to provide convincing
explanations to understand the market. Globally, factors affecting the real estate market are of enormous
importance. This study will investigate the factors influencing Saudi inhabitants to purchase real estate. The
study examine the effect of Attitude, Location, Living Space, Public Service, Reference groups namely (Friends
Influence, and other Reference Group) on the intention to purchase real estate.( Al-Nahdi, Ghazzawi2015)

The market of property industry is still growing in Indonesia, especially in big cities. There are two factors that
influence the migration, namely, the push factor and the pull factor. Push factor happens because in smaller
cities there are fewer jobs available, low-wage salaries, bad tenant habits, and bad living condition. This
research will seek consumer behavior in buying a home in Depok.The basis of this study using input phase and
the phase of the process. Input phase consists of marketing efforts by companies and social state of the
environment. In the marketing efforts include marketing mix (4P) and the state of the state of the social
environment includes influential people in buying property. In the phase of the process consists of awareness
needs, information search, and evaluation options? (Tanjung, Maoludyo, Aprianingsih, 2015)

This research paper examines the relative importance of many factors in the capital structure decisions of
publicly traded American firms from 1950 to 2003. The most reliable factors for explaining market leverage are:
8
median industry leverage (increasing effect on leverage), market-to-book assets ratio (−), tangibility (+), profits
(−), log of assets (+), and expected inflation (+). In addition, we find that dividend-paying firms tend to have
lower leverage. When considering book leverage, somewhat similar effects are found. However, for book
leverage, the impact of firm size, the market-to-book ratio, and the effect of inflation are not reliable. The
empirical evidence seems reasonably consistent with some versions of the trade-off theory of capital structure
(Frank, Goyal, 2009)

This paper will examine thinking behind value distribution for private items. It will likewise attempt to create a
specific valuing way to deal with measure the level of private item value uniqueness. Preparatory discoveries
from writing survey research recommended that arranged group (gated) idea, security and distinction decides
purchaser inclinations to buy a particular private item, while from talk with research with property designer
proposed extra factors of outline, availability, offices and brand likewise impacted the cost of the item. The
audit of writing is isolated into five noteworthy areas and gives a setting to the research. The areas audit
fundamental hypotheses and their improvement as the premise of the Theoretical structure for this research:
Development on Consumer Behavior Theories for Residential Products; References for Developer Perception in
Residential Products; Previous and Related Studies on Consumer Preferences; Real Estate Price Modeling; and
Speculative Behavior Analysis in Property Industry. (Rahadia, Wiryonoa, Koesrindartotoa, Syamwilb, 2012)

This paper is a part of an ongoing dissertation research that tries to analyze the relationship between housing
prices real estate buyer’s preferences and real estate developer’s assumption of price, and external factors
arising that influence the price. This paper acts as continuation study using the hypothesis from the authors
previous research same topic to validate the hypotheses. The findings suggest that design, brand, facilities,
reputation, reinvestment value, pricing policy, and speculative behavior play a significant part as internal and
external attributes in price definition for housing price in Jakarta Metropolitan Region. Researchers have
conducted studies to understand the behavior of real estate customer when selecting and purchasing residential
products. (Rahadia, Wiryonoa, Koesrindartotoa, Syamwilb, 2013)

This paper examines the first rigorous assessment of the homeownership experiences of subprime borrowers.
We consider homeowners who used subprime mortgages to buy their homes, and estimate how often these

9
borrowers end up in foreclosure. In order to evaluate these issues, we analyze homeownership experiences in
Massachusetts over the 1989–2007period using a competing risks, proportional hazard framework. We present
two main findings. First, homeownerships that begin with a subprime purchase mortgage end up in foreclosure
almost 20 percent of the time, or more than 6 times as often as experiences that begin with prime purchase
mortgages. Second, house price appreciation plays a dominant role in generating foreclosures. In fact, we
attribute most of the dramatic rise in Massachusetts foreclosures during 2006 and 2007 to the decline in house
prices that began in the summer of 2005 (Gerardi, Shapiro, Willen, 2007)

The research study talks about the housing market crisis: the role played by real estate investors. Using unique
credit-report data, we document large increases in the share of purchases, and subsequently delinquencies, by
real estate investors. In states that experienced the largest housing booms and busts, at the peak of the market
almost half of purchase mortgage originations were associated with investors. In part by apparently misreporting
their intentions to occupy the property, investors took on more leverage, contributing to higher rates of default.
Our findings have important implications for policies designed to address the consequences and recurrence of
housing market bubbles. (Haughwout, Lee, Tracy, Klaauw, 2011)

The research paper talks about, the growth in household debt over the past two decades has exceeded that of
income. However, the timing, extent and rate of the increase have varied considerably across countries.
Household borrowing has increased considerably in a number of developed countries over the past two decades,
both in absolute terms and relative to household incomes. This has raised concerns about the sustainability of
household debt, and the implications for the stability of the financial system if it is not sustainable. Much of the
increase in household borrowing can be attributed to two factors: the decrease in the prevalence of credit
rationing that followed from the financial deregulation of the early 1980s; and the reduction in interest rates,
both in real and nominal terms, as inflation declined over the past two decades. These factors have contributed
to a significant easing of liquidity constraints on households. Regardless of whether the increase in household
debt is sustainable, the greater indebtedness has important macroeconomic implications. The household sector
will be more sensitive to notably arising from unemployment. This enhanced sensitivity depends critically on
the share of fixed versus variable rate mortgages held by households, with the\sensitivity increasing more in
those countries with predominantly variable rate mortgages. Moreover, in some countries part of the recent
expansion in household borrowing has taken the form of a withdrawal of equity from the housing stock, which
has provided a substantial boost to consumptions pending. If this process of housing equity withdrawal were to
slow or reverse. (Debelle, 2004)

The paper talks about House prices which are generally depend on inflation, the yield curve and bank credit, but
national differences in the mortgage markets also matter. House prices are more sensitive to short-term rates

10
where floating rate mortgages are more widely used and more aggressive lending practices are associated with
stronger feedback from prices to bank credit. A house is the largest single asset of most households, and assets
whose value is linked to residential real estate represent an important component of the aggregate portfolio of
financial intermediaries. The behavior of house prices, therefore, influences not only business cycle dynamics,
through their effect on aggregate expenditure, but also the performance of the financial system, through their
effect on the profitability and soundness of financial institutions. Understanding this behavior is thus of key
interest to central banks charged with maintaining price and financial stability. (Tsatsaronis, Zhu, 2004)

The study talks about the importance of internet (Google) in helping government about Traditional economic
and business forecasting has relied on statistics gathered by government agencies, annual reports, and financial
statements. Invariably, these are published after significant delay and are aggregated into a relatively small
number of prespecified categories. This limits their usefulness for predictions, especially for addressing time-
sensitive issues or novel questions. However, the widespread adoption of search engines and related information
technologies facilitates the near- real- time collection of highly disaggregated data on literally hundreds of
billions1 of economic decisions. Recently, query technology has made it possible to obtain such information at
nearly zero cost, virtually instantaneously and at a fine- grained level of disaggregation. Each time a consumer
or business decision maker searches for a product via the Internet, valuable information is revealed about that
individual’s intentions to make a future economic transaction. In turn, knowledge of these intentions can be
used to predict future demand and supply. (Wu, Brynjolfsson, 2015)

The research study talks about the role of the valuer in undertaking a valuation are to determine the value of the
property being valued. In the case of mortgage valuations, where the purchaser has agreed and exchanged
contracts on a property, it may be presumed that the role of the valuer is to confirm or reject the purchase price
as value. In the case of rejecting the purchase price as value, the market value is determined by the valuer. In the
competitive mortgage market there is pressure on the valuer that suggests the purchase price of property is
ultimately the best evidence of value. This paper firstly determines the purpose of the mortgage valuation given
the proposition that the purchase price of property is the best evidence of value. Secondly cases have been
reviewed that have presumably endorsed the proposition that the purchase price of a property is the best
evidence of value. An examination of these cases will define the criteria values are to use to establish whether
the purchase price of property is the best evidence of value. An examination of cases involving the refinancing
of property where there is no sale over the subject property, coupled with an absence of comparable sales
evidence has been undertaken, in establishing the importance of sales evidence in the valuation process.(
Mangioni,2006)

11
The study talks about the importance of location of a residential property in a city directly affect its market
price. Each location represents different values in variables such as accessibility, neighborhood, traffic,
socioeconomic level and proximity to green areas, among others. In addition, location has an influence on the
choice and on the offer price of each residential property. The development of artificial intelligence, allows us to
use alternative tools to the traditional methods of econometric modeling. This has led us to conduct a study of
the residential property marketing the city of Valencia, Spain. In this study, we will explain the factors that
determine the demand for housing and the behavior of prices in the urban space. We used an artificial neural
network as a price forecasting tool since this system shows a considerable improvement in the accuracy of
ratings over traditional models. With the help of this system, we attempted to quantify the impact on residential
property values of issues such as accessibility, quality standards of public facilities, quality of urban planning,
environment and other aspects.( Duran, Laura; Llorca, Alicia; Ruiz, Nancy; Valero, Soledad; Botti,2011)

The study talks about the results of a new survey of US home-buyers in 2002. The most important finding is that
the survey suggests that home-buyers’ expectations are substantially affected by recent experience. Even after a
long boom that has taken prices to very high levels, home-buyers typically have expectations that prices will
show double-digit annual price growth over the next 10 years, apparently with only a modest level of risk. We
conjecture that these characteristics of individuals’ expectations may contribute to the substantial swings that
are observed in housing prices. Changes in housing wealth, especially if they are perceived as long-lasting, may
have substantial macroeconomic effects through private consumption. In the second part of the paper, we
examine the link between increases in housing wealth, financial wealth, and consumer spending. We rely upon a
panel of 14 countries observed annually for various periods during the past 25 years and a panel of US states
observed quarterly during the 1980s and 1990s. We find a statistically significant and rather large effect of
housing wealth upon household consumption. (Case, Quigley, Shiller, 2003)

This study analyses the recent trends in home ownership versus renting in Australia. It considers a wide range of
indicators that provide an insight into these changes, allowing a number of deductions to be drawn and
formulating an overall picture of these trends. The effect of long-term renting on individuals/households and the
overall economy are also considered. Finally, a number of recommendations that pave the way for further
research in this area are forwarded. (Greenhalgh, 2002)

12
The study talks about how often Agents are better informed than the clients who hire the demand may exploit
this informational advantage. Real estate agents have an incentive to convince clients to sell their houses too
cheaply and too quickly. We test these predictions by comparing home sales in which real estate agents are
hired to when an agent sells his own home. Consistent with the theory, we find homes owned by real estate
agents sell for 3.7%more than other houses and stay on the market 9.5 days longer, controlling for observables.
Greater information asymmetry leads to larger distortions. (Levitt, Syverson, 2008)

This study presents the outputs from research carried out with the support of the Joseph Rowntree Foundation
and designed to add to the evidence base related to new, mixed tenure housing developments. The research
provides an assessment of key issues related to new residential development of mixed tenure areas in England
and considers the impact of mixed tenure housing on property values and other aspects of their development. It
assesses the features of mixed tenure development that present fewest problems in terms of property values and
evaluation by developers, planners and residents. It refers to the factors perceived as most problematic and
creating the greatest risk and factors that are most associated with successful mixed tenure development.
(Rowlands, Murie, Andrew Tice, 2006)

The paper talks about Negotiations which are common in many activities; the sectors of construction and real
estate are not an exception: here the negotiations are an inseparable part of the real estate buying and selling
process. The article analyses scientific research related to negotiations and presents the developed model for
multiple criteria analysis of construction and real estate negotiations. The analysis of the negotiation processes
in construction and real estate and the analysis of the relevant support for decision-making in negotiations must
be thorough; it must consider not only economic but also political, legal, socio-cultural, psychological,
consumer behavior, technological, quality of life and other issues. The developed model enables to analyze the
combination of the real estate negotiation process, the improvement of its efficiency through use of decision
support and voice stress analysis technology and the participating stakeholder groups seeking their goals
together with the influencing external macro and micro environment. The paper dwells on the components of
this model. (Urbanavičiene, Kaklauskas, Edmundas, Zavadskas, 2010)

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This research attempts to study the influence of the gender in purchase of house in Thailand. In Thailand, the
housing industry is on the increased. Houses are sold in many shapes and design such as town house and
condominium. There are many factors that influence the consumer to purchase a house in Bangkok. However,
each consumer will have the different influence factors in purchasing a house due to different in gender and also
different in culture. Therefore, the purposes of this research were to determine whether the husband or wife have
more dominant role in making purchase decision of housing in Bangkok or husband and wife are using the joint
decision when purchasing a house. Furthermore is, to examine whether of sales person, price and location will
influence the consumer purchase intention on housing in Bangkok. (PLABDAENG, 2010)

The purpose of this study was to examine the underlying factors that drive abandonment. To accomplish this,
archival research, personal interviews and multivariate techniques were used. From the archival work, four main
themes arose as potentially impacting abandonment: race, school closures, processes of neighborhood change,
and greater indebtedness due to predatory lending. Personal interviews with residents suggested that absentee
landlords, community disinvestment, poor political leadership, and the economy influence abandonment.
Correlation and stepwise regression analyses were run to model the relationship between abandonment and
various socio-economic and housing factors. Two end state measures of abandonment were used as dependent
variables in the modeling: “other vacant” and “state foreclosure.” Results from these analyses showed that
socio-economic factors and the change in the number of housing units influence abandonment. Based on this
study, it appears that the factors driving abandonment are symptomatic of the poor economy in Flint. (Bassett,
Schweitzer and Panken, 2006)

This paper looks at a broad array of evidence concerning the recent boom in home prices, and considers what
this means for future home prices and the economy. It does not appear possible to explain the boom in terms of
fundamentals such as rents or construction costs. A psychological theory, that represents the boom as taking
place because of a feedback mechanism or social epidemic that encourages a view of housing as an important
investment opportunity, fits the evidence better. (Shiller, 2007)

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The results of this research provided a better understanding of the knowledge and purchase intention attitudes of
people that would encourage them to choose owning a house in gated community rather than in open space.
Financial factor, environment factor, distance factor, property physical factor and subjective norm had captured
up to 35% out of the factors that affecting the house buyers to own a house in gated community. Besides, this
study is useful in helping housing developers and government to understand better customer preferences
towards the trend of future housing development as references, in order to satisfy the need of prospective house
buyers. (Wai Lun, 2011)

This research aims to analyses and evaluate the application of the hedonic method of price determination to
office rental valuations in a local commercial property market in the East Midlands, United Kingdom. A
correlation matrix was constructed which revealed problems of interdependence between the presence of
suspended ceilings and comfort cooling, and double glazing and category II lighting respectively. A
parsimonious least squares linear regression model was developed that statistically explained 94.2% of the
variation in asking rents. Size of property and double glazing were identified as explanatory variables at the
95% level of significance. These findings were similar to Dunse and Jones (1998). But in contrast to other
research (Mills 1992; Dunse and Jones, 1998) proximity to railway station, location in a business park, presence
of parking, and a full repairing and insuring lease were not significant explanatory variables at the 95% level of
significance. These differences between models may be explained by local influences such as the nature of the
study area, the size and characteristics of the commercial property market, its economic structure, the number of
observations in the model and the date at which the model was tested. The authors also tested the predictive
power of the model. The model was validated by removing six observations from the data set, recalibrating the
model and predicting the asking rents for the six properties. There was a tendency to significantly overestimate
asking rents for relatively low rental properties. Generally the model showed poor predictive power. (Sayer,
Moohan, 2007)

The primary point of this research is to research and measure the effect of flooding and the danger of flooding
on the estimation of private property in the UK. An auxiliary point of this research is to explore the effect of
flooding and surge chance on the cost and accessibility of protection and whether protection issues are a
deciding element in any loss of property estimation. This research touches upon various fields of study
including regular habitat, manufactured condition, chance administration, financial aspects and fund. Indeed,
even a quick look at the writing uncovers that professionals from every one of these fields have contemplated
the effect of flooding on property. (Lamond, 2008)

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The research paper discusses the pivotal role that housing plays for both social and economic outcomes. All
people need to be housed, and housing circumstances help determine social outcomes, especially for vulnerable
groups. We outline an analytical framework that treats housing as a dynamic system, incorporating the life-
cycles of both individuals/households and houses. Each is long-lived; decisions impact on housing for decades.
This approach is relevant to the development of housing research and housing policy. We illustrate the issues
with reference to the relationship between rental yields and measures of deprivation across New Zealand. The
surprising nature of this relationship has consequences regarding potential poverty traps and wealth disparities.
While highlighting an important housing market issue, any policy response to this issue is complicated by the
need to take account of the life-cycles of both individuals and of houses, and by the long-lasting impacts of
decisions. (Grimes, Kerr, Aitken, Sourell, 2006)

The given research paper talks about the concept of ‘Affordability’ it is concerned with securing some given
standard of housing (or different standards) at a price or a rent which does not impose, in the eyes of some third
party (usually government) an unreasonable burden on household incomes. The concept of short-term
affordability, which is concerned with financial access to a dwelling and is based on cash flows, is combined
with the concept of long-term affordability, which is about the costs of housing consumption. The use of these
concepts is illustrated for Flanders and the Netherlands. They show that each concept has its own uses and that
they are not interchangeable. However, both concepts indicate that in 2005 higher-income households, and
especially homeowners (with a mortgage), were relatively better off than lower-income households, particularly
renters. Homeowners’ higher income levels on average more than compensate for their higher expenses in
comparison with tenants; they also receive higher explicit subsidization and in times of rising prices they also
receive expected returns on housing.( Haffner, Heylen,2011)

This paper presents a long-run equilibrium between interest payments and income (interest-to-income ratio)
over the error-correction term. It is thought that interest payments are linked to income levels by a stable long-
run relationship. Although they may drift apart temporarily, they tend to return to a long-run equilibrium. The
equilibrium path may also shift over time. This process forms the basis for an error-correction model that may
serve to explain and predict fluctuations in house prices. The model takes account of the ability of low nominal
interest rates in recent years to support higher than average price-to-income ratios. House prices have been
studied extensively and with a variety of methods. Evidence indicates that both short-run fundamentals and
long-run fundamentals have an impact on houses prices (Vries, Boelhouwer, 2008)

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For retail investors, investment decision-making is very important. It can bring them to high profit or heavy
losses. Therefore, the investor should be aware of his/her decision-making and the factors affecting these
decisions, the purpose of this study was to understand and determine the difference between the effects of
Psychological and Economic factors on individual investor’s decision-making. Psychological factors such as
Overconfidence, Fear of loss, Optimism, Positive attitude and so on were considered and Economic factors such
as Overall performance of company, Price movement information, Profitability and so on were considered and
factor analysis was applied to 254 responses (Sarwar, Afaf, 2016)

The paper talks about Real estate products in Bangladesh are real time demand fulfillment in the market toward
the total socio economic development of Bangladesh. The sector is directly contributing to the GDP through
creating shelter, developing unused land, helping other businesses to grow, attracting local and foreign
investment and generating employment. High population density coupled with land scarcity and lack of social
security enhanced the development of the sector over the time. Since the induction of the industry in 70s and the
boom in 90s by April 2009 the sector has 524 REHAB affiliated member companies while lots of others do
business informally. But the market is quite concentrated and 10-15 companies hold around 95% of the total
market shares. This study examines what factors influenced the development of the sector along with a focus on
how the sector performs. The empirical data has been collected from 220 customers, 15 real-estate experts and
20 real estate professionals in Dhaka and its outskirts. The study shows that only 29% of customers are happy
with the quality of real estate products and 87% of the customers think that government should intervene into
the market to set up a proper framework for the sector (Islam, Arefin, 2009)

The housing experiences of young people are a contemporary global concern, with the exacerbation of young
people’s housing problems in many countries reported widely in the media and raising important policy
questions. In response, this special issue of the International Journal of Housing Policy presents new empirical
research from Europe and East Asia and seeks to identify key areas for improvement in national housing
policies. This editorial summarizes the main housing issues identified in the special issue articles and identifies
the emergence of two cross-cutting policy challenges many young people are being confined to tenures they
would not typically choose to occupy, with transitions from the family home into independent living becoming
increasingly delayed, protracted and complex (Billari and Liefbroer, 2010). The housing experiences of young
people have become a critical international issue, with young people’s housing problems being reported widely
in the media and an increasing concern of scholars (Clapham, Mackie, Orford, Thomas, & Buckley,2014;
Forrest, 2012; Forrest & Yip, 2016; Mackie, 2012; Ronald & Hirayama,2009; Yip, Forrest, & La Grange, 2006
(Mackie,2016)

17
This paper expands upon past research of the long-run balance connection of IIR. Although we don't determine
the definition and the estimation of direction as it isn't the point of this research, the administrative condition has
been thought about verifiably in the setup of the long run harmony. This paper sets up a straightforward
reasonableness display that certainly consolidates the real Dutch market highlights to explain long-run house
costs under an administrative domain. The outcomes uncover along-run relationship at house costs under strict
directions. The relationship among house costs, pay, loan costs, and expansion is confirmed utilizing a collected
dataset. Over the long haul, wages and loan costs work as the two prime powers driving value elements, while
the part of swelling is constrained. (De Haan, Boelhouwera, 2017)

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 CHAPTER-3

RESEARCH METHODOLOGY
Description of Research Design and Procedures Used -This is a descriptive research of quantitative nature
under which questionnaire study will be carried out..

Sampling Procedures

A non-probability convenience sampling procedure will be used.

Methods and Instruments of Data Gathering

Questionnaire - Materials included is a questionnaire which include 23 questions which are given in the
appendix A. In this study data will be collected through a survey distributed in Delhi-NCR region using a self-
administrated questionnaire. The questions were adapted from various researches, namely (Kalia,2015), (
Misra,, Katiyar, Dey,2013), .( Hassan, Bakar,2015) and (Soundarajan S, Susithra V,2016).

The questionnaire consists of two main sections. The first section asks about the respondent’s characteristics.
The second section covers Attitude, Location, Living Space, Public Service, and Reference groups namely
(Friend’s Influence, and other Reference Group). The five-point Likert Scale was used to assess variables
(ranging from 1, Strongly Disagree to 5, Strongly Agree). The Population for this study comprises of people
living in Delhi-NCR region that are above 25 years old and looking to buy a residential property or already
purchased it recently.

The survey will measure the various independent variables using Likert scale and after primary data collection
the data will be analyzed using factor analysis with the help of SPSS.

Methods of Data Analysis

The methods of data analysis we are going to use are, factor analysis and correlation analysis using SPSS

19
 CH.04-RESULT

4.1 Data Analysis

The EFA has been applied using IBM SPSS Statistics on the data collected from 200 samples and here is the
Output.

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .766

Bartlett's Test of Sphericity Approx. Chi-Square 1573.177

Df 190

Sig. .000

Table-1-KMO and Bartlett’s Test

As the Value of KMO >0.6, therefore, the Sample is adequate. Also, the significance value is .000 this
determines that the model is not an identity matrix and thus the Factor Analysis could be applied.

As per Kaiser’s Reference,

0.00 to 0.49 unacceptable.

0.50 to 0.59 miserable.
0.60 to 0.69 mediocre.
0.70 to 0.79 middling.
0.80 to 0.89 meritorious.
0.90 to 1.00 marvelous.

The Bartlett’s Test of Sphericity relates to the significance of the study and thereby shows the validity and
suitability of the responses collected to the problem being addressed through the study. For Factor Analysis to
be recommended suitable, the Bartlett’s Test of Sphericity must be less than 0.05.

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 Communalities

Initial Extraction
What is your purpose for buying the house? 1.000 .717
What resources you refer to while purchasing a real estate property? 1.000 .688
What Type of House will you prefer to buy? 1.000 .800
How far can you accept the location of the house from your working place if
1.000 .586
measured by bus?
I would be willing to pay extra for a house with power-saving features 1.000 .763
I believe Houses, are the symbol of one’s social status 1.000 .732
The better the location of the real estate is increase in my willingness to buy the real
1.000 .614
estate property
Price plays an important role while buying a house. 1.000 .696
My family plays a role in the decision to buy a house 1.000 .712
I want to buy real estate property/house which will match my status 1.000 .678
Easy availability of loan increases my chance to purchase. 1.000 .807
Will Brand name of builder matters while making decision to buy a residential
1.000 .707
property
I Will buy the real estate product because the price of the property will increase in
1.000 .645
future
I will check the quality of external environment, before purchase 1.000 .791
The existence of affiliated facilities nearby can increase your willingness of the
1.000 .738
buying real estate property
What facilities are absolutely essential when you are buying your house 1.000 .715
What is the main factor in your consideration while buying a house? 1.000 .598
Gender 1.000 .650
Occupation 1.000 .604
Annual Income 1.000 .595

Extraction Method: Principal Component Analysis.

Table 2-Communalities

Communalities indicate the amount of variance that shows each variable accountability. The communality for a
given variable can be interpreted as the proportion of variation in that variable explained by the three factors. In
other words, if we perform multiple regression of climate
Against the three common factors, we obtain an R2 =0.717, indicating that about 71.7% of the variation in
climate is explained by the factor model.

21
 Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings

Component Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %

1 5.591 27.953 27.953 5.591 27.953 27.953 4.641 23.205 23.205

2 2.218 11.092 39.044 2.218 11.092 39.044 2.270 11.348 34.553
3 1.538 7.691 46.736 1.538 7.691 46.736 1.466 7.332 41.886
4 1.222 6.111 52.846 1.222 6.111 52.846 1.418 7.091 48.977
5 1.198 5.990 58.836 1.198 5.990 58.836 1.360 6.801 55.778
6 1.050 5.250 64.086 1.050 5.250 64.086 1.356 6.778 62.557
7 1.016 5.081 69.167 1.016 5.081 69.167 1.322 6.610 69.167
8 .896 4.478 73.645
9 .775 3.875 77.520
10 .750 3.752 81.272
11 .656 3.282 84.553
12 .564 2.819 87.373
13 .537 2.684 90.057
14 .459 2.297 92.353
15 .346 1.728 94.082
16 .326 1.632 95.714
17 .296 1.478 97.192
18 .280 1.398 98.590
19 .157 .786 99.376
20 .125 .624 100.000

Extraction Method: Principal Component Analysis.

Table 3-Total Variance Explained

This table shows that the total number of questions are divided into 6 groups whose Eigen value>1.
Also, the total variance explained in the rotation component matrix is 69.167% which is above 60% that means
it is a good model.

22
Generally, the extraction of components is done on the steeper slope. The components on the shallow slopes
contribute little to the solutions.
The last big drop occurs between the 7th and 8th components, thus using the first 6 components is the better
solution.
The rotated matrix helps to determine what the component represents.

23
 Component Matrixa

Component

1 2 3 4 5 6 7
What is your purpose for buying the house? .790
What resources you refer to while purchasing a real estate property? .780
What Type of House will you prefer to buy? .767
How far can you accept the location of the house from your working place if
.762
measured by bus?
I would be willing to pay extra for a house with power-saving features .761
I believe Houses, are the symbol of one’s social status .747
The better the location of the real estate is increase in my willingness to buy the real
.703
estate property
Price plays an important role while buying a house. .683
My family plays a role in the decision to buy a house .607
I want to buy real estate property/house which will match my status .590
Easy availability of loan increases my chance to purchase. .691
Will Brand name of builder matters while making decision to buy a residential property .531
I Will buy the real estate product because the price of the property will increase in
.504
future
I will check the quality of external environment, before purchase
The existence of affiliated facilities nearby can increase your willingness of the buying
.718
real estate property
What facilities are absolutely essential when you are buying your house .681
What is the main factor in your consideration while buying a house? .558
Gender .767
Occupation -
.683
Annual Income .503

Table 4-Component Matrix

This Table shows that our variables into different groups and groups are divided as per the Eigen>1,
Therefore, 5 groups are formed after the factor analysis applied.
The Component Matrix shows the Correlations among the Components prior to and after rotation.

24
 Rotated Component Matrixa

Component

1 2 3 4 5 6 7
What is your purpose for buying the house? .871
What resources you refer to while purchasing a real estate property? .843
What Type of House will you prefer to buy? .809
How far can you accept the location of the house from your working place if
.780
measured by bus?
I would be willing to pay extra for a house with power-saving features .715
I believe Houses, are the symbol of one’s social status .638
The better the location of the real estate is increase in my willingness to buy the real
.616
estate property
Price plays an important role while buying a house. .550 .541
My family plays a role in the decision to buy a house .728
I want to buy real estate property/house which will match my status .627
Easy availability of loan increases my chance to purchase. .573
Will Brand name of builder matters while making decision to buy a residential property .814
I Will buy the real estate product because the price of the property will increase in
.709
future
I will check the quality of external environment, before purchase
The existence of affiliated facilities nearby can increase your willingness of the buying
.832
real estate property
What facilities are absolutely essential when you are buying your house .686
What is the main factor in your consideration while buying a house? -
.781
Gender .715
Occupation .880
Annual Income .817

Table 5-Rotated Component Matrix

Finally, the Rotated Component Matrix shows you the factor loadings for each variable. The Factors are
highlighted.
Based on these factor loadings, Factor 1, can be renamed as “Living Space”

Similarly, as per the highlighted Components in Factor 2, it can be renamed as “Peer Groups”
The Factor 3 can be renamed as “Social Status”,
Factor 4 can be renamed as “Location” and Factor 5 can be renamed as “Affordability”
Factor 6 can be renamed as “Occupation” and Factor 7 can be renamed as “Income”

25
Validity and reliability testing

We first tested the measurement properties of the Consumer Perception and practices implementation construct
using reliability and item-to-total correlation analyses, followed by exploratory factor analysis (EFA).

Reliability Statistics

Cronbach's Alpha N of Items

.726 20

Table-6-Reliabilty Scale

The reliability test and item-to-total correlation analysis results provided in Table 1 suggest a reasonable fit of
the latent factors to the data collected. Cronch-bach alpha values for all the factors are greater than 0.726 and
the item loadings on the factors are all acceptable, i.e., >0.7.

26
 CHAPTER-5
Discussion
In this study, it is examined and a measurement scale for evaluating the different facets of implementation is
tested for its validity and reliability. The construct of this implementation appears to adequately fit the data
collected. The multidimensional conceptualizations give experiences into the build of Consumer conduct and
land property and its associations with the basic variables. To start with, the things and the components of the
build give immediate and noteworthy data on the Measurement of customer.

We likewise observe interrelationships do happen and reception of certain second level practices will identify
with different practices. This foundational set of interrelationships ought not to go unnoticed by either experts or
scholars, who ought to be careful that the acknowledgment level are not incremental nor are they
compartmental.

On the other hand, a research of the build for Consumer behavior towards basic leadership of purchasing a
house. It might uncover designs not promptly uncovered by concentrate singular components. The things and
variables groupings approved in this research give the designers, proprietors and individuals who are hoping to
purchase land property with experiences in recognizing regions for thought while purchasing a house.

27
 Chapter-06
Conclusions and future research
This study presents practitioners with a measurement scale for evaluating the different facets of Consumer
behavior and their decision making towards residential properties.

The findings of this study indicated that to purchase real estate, whereby Location, Living Space, Public Service
and Reference groups namely (Friends Influence, and other Reference Group) had effected the decision making
of consumer. It was shown that the intention to purchase real estate was influenced by A Location, Living
Space, Affordability and Reference groups namely

. All in all, it is accepted that the results of this research will have contributed some important data for scientists,
customers, marketers and land proprietors. It is normal that the consequence of the review will give clear data
on the intention to buy land, and which factors really influence this expectation. This research gave evidence
and data with respect to what truly impacts the expectation to buy property. The research would thus be able to
fill in as future reference on the research of land

Presently a day's kin who go for purchasing a property have turned out to be more mindful about what they
should search for and the data they should look for, and are more worried about the determination of the correct
kind of property for them. Be that as it may, lion's share of the general population is as yet ignorant of the
components which they should search for before going to purchasing a property. Here I have gathered the
discernment and examined the desires of the overall population in general.

Counting more factors, i.e. other than the ones utilized as a part of this exploration, may clarify behavioral aim
much more concisely. For instance extra research in various geological territories in the nation can be led in
order to sum up the discoveries. What's more, at long last, if qualities of respondents in the overviews could be
incorporated into future research; it may show a clearer perspective of what propels buyers of real estate

28
Kalia1, A. (2015). FACTORS AFFECTING CONSUMER BEHAVIOR WHILE REAL ESTATE PURCHASING.
1Assistant Professor, Department of Management Studies, MDU University, 2-3.

Mansi Misra, G. K. (2013). Consumer perception and buyer behavior for. Int. J. Indian Culture and Business Management,
Vol. 6, No. 1, 2013, 2-5.

Tawfik Salah Al-Nahdi, O. H. (2015). Behavioral Factors Affecting Real Estate Purchasing. International Journal of
Business and Social Science Vol. 6, No. 8(1); 2-3.

Aprianingsih, F. T. (2015). FACTORS INFLUENCING CONSUMER BUYING INTENTION FOR. JOURNAL OF

BUSINESS AND MANAGEMENT Vol. 4, No.4, 2015: 484-493, 2-5.

Goyal, M. Z. (2009). Capital Structure Decisions: Which. 5-10.

R.Aswin Rahadia*, S. K. (2012). Relationship between Consumer Preferences and Value. ASEAN Conference on
Environment-Behaviour Studies,, 1-5.

Raden Aswin Rahadia*, S. K. (2013). Attributes Influencing Housing Product Value and Price in. AMER International
Conference on Quality of Life, 1-4.

Kristopher Gerardi, A. H. (2007). Subprime Outcomes: Risky Mortgages, Homeownership. 1-8

Andrew Haughwout, D. L. (2011). Real Estate Investors, the Leverage Cycle, Federal Reserve Bank of New York, 3-12.

Debelle, G. (2004). Household debt and the macroeconomy1. JEL classification: E210, E520. 1-5.

Brynjolfsson, L. W. (2015). How Google Searches Foreshadow. University of Chicago Press, 1-8.

Mangioni, V. (2006). Valuing the purchase price of property -Is the purchase price of property the best evidence of value?
A paper presented at the Pacific Rim Real Estate Conference, Auckland, and January 2006, 1-4.

Fernandez Duran, L., Llorca, A., Ruiz, N., Valero, S., & Botti. (2011). the impact of location on housing prices: applying
the Artificial Neural Network Model as an analytical tool. 1-10.

Case, K. E. (2003). Home-buyers, Housing and the Macroeconomy. 1-10.

Syverson, S. D. (2008). MARKET DISTORTIONS WHEN AGENTS ARE BETTER INFORMED: THE. The Review of
Economics and Statistics, 1-8.

Rob Rowlands, A. M. (2006). MORE THAN TENURE MIXES: DEVELOPER AND PURCHASER ATTITUDES TO
NEW HOUSING ESTATES. Published for the Joseph Rowntree Foundation, 8-18.

Vita Urbanavičiene, A. K. (2010). The conceptual model of construction and real. International Journal of Strategic
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PLABDAENG, C. (2010). GENDER INFLUENCE ON PURCHASE INTENTION. 10-15.

Lamond, J. E. (2008). THE IMPACT OF FLOODING ON THE VALUE OF. 11-26.

Arthur Grimes, S. K. (2006). The housing fulcrum: Balancing economic and. Kōtuitui: New Zealand Journal of Social
Sciences Online, 1-8.

Heylen, M. H. (2011). User Costs and Housing Expenses. Towards a more. Housing Studies, 1-6.

29
Appendix A: List of Measurement Items

Factors Measurement items

1. What is your purpose for buying the house?

Living Space a)Investment For self-living b) For marriage c)For improving the living standard
d)Currently do not own a house e) For providing living space for parents
f) For the education of Children For providing live space for the children

2. What resources you refer to while purchasing a real estate property?

a)Peer groups b) Internet c) Newspaper d)Billboards e) TV advertising

3. What Type of House will you prefer to buy?

a)Flats b)Individual villas c) Apartments

4. How far can you accept the location of the house from your working place if
measured by bus?

a)5 minutes at the most b)15 minutes at the most c)30 minutes at the most
d)60 minutes at the most e)120 minutes at the most

5.I would be willing to pay extra for a house with power-saving features (Likert scale)

6.I believe Houses, are the symbol of one’s social status (Likert scale)

7.The better the location of the real estate is increase in my willingness to buy the
real estate property (Likert scale)

8. Price plays an important role while buying a house. (Likert scale)

9.My family plays a role in the decision to buy a house (Likert scale)

10.I want to buy real estate property/house which will match my status (Likert scale)

11. Easy availability of loan increases my chance to purchase. (Likert scale)

Peer Groups

12.Will Brand name of builder matters while making decision to buy a residential
property (Likert scale)

Social Status 13.I Will buy the real estate product because the price of the property will increase in
future (Likert scale)

14.I will check the quality of external environment, before purchase (Likert scale)

30
 15.The existence of affiliated facilities nearby can increase your willingness of the
buying real estate property (Likert scale)

Location
17. What facilities are absolutely essential when you are buying your house?

a)Transport b) Metro Rail corridor c) Road transport

18. What is the main factor in your consideration while buying a house?

Affordability a)Location b) Environment c)Affiliated facilities d) Transportation e)Design Price

f)Property management g) Developer Gender

Occupation
Occupation

Income Annual Income

31