This study investigates the impact of buyer preferences on unsold inventory in Kolkata’s affordable housing market, focusing on privately developed units – a segment that remains underexplored. The purpose of this paper is to bridge significant gaps in the literature by integrating multiple dimensions of residential desirability across Kolkata’s diverse regions, including North Kolkata, Rajarhat–Newtown and South Kolkata.
The literature review identified 119 parameters relevant to evaluating homebuyers’ preferences, complemented by prior studies from various national and international contexts. A structured questionnaire was then administered to 349 households residing in affordable housing units across 30 housing complexes in Kolkata. This survey captured data on buyer preferences and satisfaction for the identified variables, which were organised into five distinct levels of characteristics. To quantify the overall desirability, product weights for each variable were derived using the rank sum method and combined with percentage satisfaction scores to generate a Housing Utility Score. Finally, multivariate regression analyses were used to assess the significance of each level of characteristics and individual variables, thereby identifying the key factors influencing the sale of affordable houses.
This study found that few parameters significantly impacted the unsold percentage of affordable housing units, with improvements in these factors strongly linked to reduced inventory. For instance, in North Kolkata, effective signage and access to essential retail amenities significantly lower unsold inventory. These results underscore that targeted improvements in specific buyer preference dimensions can effectively decrease unsold units across diverse urban contexts. In Rajarhat–Newtown, factors contributing to a vibrant and lively environment and dependable modern infrastructure – such as reliable water supply systems – are critical in reducing unsold units. Meanwhile, in South Kolkata, enhancements in essential services such as robust sewer facilities, adequate street lighting and high-quality residential amenities (including larger bedrooms and appealing views) have a pronounced negative impact on unsold percentages.
The originality of this study lies in its integrated analytical framework that tailors actionable recommendations to the unique sociocultural and economic contexts of housing markets in different circles of Kolkata, thereby enhancing the understanding of factors influencing unsold affordable housing.
