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Abstract
The Real estate is one of the booming sectors of the Indian Economy. It is expected to contribute 13 percent of the country's GDP by 2025. With the advent of globalization, the demand of real estate is steeply increasing for residence and office space. Real estate sector is also giving job opportunities and it has a cascading effect on the ancillary industries. Although real estate can be segregated into four sub-sectors
i.e., housing, retail, hospitality, and commercial but the focus of the study is on the housing sectors. The study is confined to residential real estate, mainly flats. The main focus of the study is to identify and assesses the various factors that buyers look upon while buying real estate. For the purpose of study 65 respondents were selected from different parts of the city of Kolkata in India.
KEYWORDS: Real estate, Purchase decision factors, Variation and dependency, Association of factors.
1. Introduction
There has been a paradigm shift in the Indian Economy in the last five years. Real estate sector has witnessed many reforms in the last five years. The GST council has drastically reduced the GST rate for under-construction residential properties thereby reduce the cost of home buying for all buyers, especially for the middle-class buyers. Earlier due to increasing GST rate investors were only interested to buy ready properties as GST was out of ambit on ready flats. Now due to the slashing of GST rates on under-construction properties buyers are also buying under construction properties. Secondly, the Reserve Bank of India has cut the REPO rates thereby facilitating the reduction in the interest rate charged by home mortgage lenders. Thirdly, the formation of the Real Estate Regulatory Authority (RERA) which ensure safeguard of the home buyers from fraudulent builders is contributing to the growth of real estate industries. Finally, with the introduction of Pradhan Mantri Awas Yojana (PMAY) which will provide affordable housing to the urban poor by 31st of March 2022, it is expected to contribute for the growth of real estate industries. Under PMAY (Urban) a first-time buyer with a family income restricted to Rs. 18 lakhs per annum will get a home loan subsidy of up to 6.5 percent. Also, with the introduction of the CIBIL...