Analysing the home buyers’ purchasing behaviour in Bengaluru during the post-COVID-19 pandemic era through structural equation modelling

Abstract

Purpose Housing is one of the basic necessities of humankind for survival and purchasing a home is often a substantial milestone. Individuals exhibit complex behaviour influenced by various factors while making decisions related to the purchase of residential properties. While most of the earlier studies have focused on understanding the purchasing behaviour of home buyers’ in developed countries, the research is limited on this topic in developing countries such as India. The booming information technology industry has rapidly increased the demand for residential properties among the migrant population in Bengaluru, India’s largest technology hub. Real estate developers strive to meet the requirements of prospective customers through innovative ways but face challenges in a competitive market. Design/methodology/approach It is essential to understand the factors influencing home buyers’ purchase attitudes for increasing property sales. However, a lack of research on this subject is identified in the emerging city of Bengaluru. This study aims to analyse the determinants of home buying decisions for potential investors in Bengaluru through structural equation modelling to provide insights for the real estate industry to construct houses as per their customers’ needs. Findings It was found that housing amenities, financial aspects, location conveniences and marketing services significantly influenced home buyers’ purchase decisions, whereas housing features do not. Originality/value The findings of this study offer valuable insights for governmental bodies to implement appropriate policies and for builders to design properties with features that cater to the target population, thereby promoting sustainable growth in the real estate industry.