Factors Affecting Real Estate Customers Choice Of Residential Houses; Evidence From Some Selected Real Estate Companies In Ethiopia

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Addis Ababa University


The purpose of this study was to examine factors affecting real estate customer’s choice of residential houses; evidence from some selected real estate companies in Ethiopia. The researcher has studied the effect of price (price sensitivity and price information), quality (number of rooms, provision of sustainable infrastructure and quality of material) and location (nearness to a city, exposed to noise, and accessibility to public facilities) on customer choice of a house. In order to collect the data, survey questionnaire was distributed to 247 dwellers who have actually bought and currently living in the houses of either of the three real estates; Ayat, Flintstone and Noah. The researcher has found that customers mainly considered price sensitivity, provision of infrastructure, quality of material, exposed to noise, and accessibility to public facilities as a major factor on their house choice. The collected data was analyzed using descriptive data analysis method. Based on the findings, the researcher recommended the management team of the three real estate companies to give special attention only for those variables that have major impact on customer choice. The result of the data analysis contributes to the body of knowledge in the area by demonstrating that how user perceptions about the variables (price, quality, and location) have affected their final decision. Although the study has its own limitations, the implications of the results allow providing practical recommendations to the real estate industry, and directions for further work.



real estate, price sensitivity, price information