This study aims to empirically investigate the factors that impact housing prices in the National Capital Region (NCR), India, using ordinary least squares (OLS) and quantile regression estimation approaches.
The data for the study were collected from various websites of various real estate intermediaries and through discussions with apartment owners’ associations in NCR. Quantile regression was used along with OLS to understand the impact of various factors on housing prices using a dataset of 529 residential properties.
The study findings establish that size, age, number of bathrooms, floor level, security, parking, lift, power backup, waste disposal system and distances from hospital and shopping complexes have a positive impact on housing prices, while the number of rooms, number of balconies, distances from school, metro station and employment zone are established as negative factors for housing prices. The impact is not uniform across all quantiles for some factors. The impact of amenities was established to be the highest in deciding the housing prices in NCR, India.
The research extends the ongoing empirical research on understanding “what impacts the housing prices?” by providing empirical evidence on the factors impacting housing prices in an emerging market (India) and a buoyant residential market (NCR). This study will help future researchers explore the other factors impacting housing prices in diverse residential settings in India and globally.
The study findings provide significant insights to various stakeholders in housing development ecosystems like regulatory bodies, policymakers, builders, designers and homebuyers. The rising demand for houses driven by rural migration towards urban locations is a positive factor for real estate developers. Still, the increased competitive scenario makes it difficult to achieve competitive pricing to attract home buyers. The findings will help the real estate developers understand the factors impacting the housing prices and help them design and structure their house offerings accordingly. Governments also increasingly use public-private partnerships in the affordable housing segment. The study findings will help the planning bodies achieve the right design, amenities and pricing to attract buyers and make their housing societies citizen-friendly.
As per the authors’ knowledge, this is the first comprehensive research endeavour to empirically investigate the major factors influencing housing prices in NCR, India.
