Factors Affecting the Demand for Owners Occupied Apartment in Dhaka City

Abstract

In recent years the demand for apartments in Dhaka city has taken the great leap forward, though it is not strange to find the apartments remain unsold even after they are built. The main purpose of this paper is to identify the factors affecting the demand for owner's occupied apartment in Dhaka city. The study is based on survey data collected from hundred samples from five different locations, namely Dhanmondi, Uttara, Mohammadpur, Mirpur, and Khilgaon. Using primary data, with sixteen components the present study extracted six rudimentary factors by using factor analysis method. This report found that the most important factors to be considered are location, utility and basic facilities, recreation facilities, availability of Institutional Funds and Price per square feet chronologically. In case of location, developers should try to choose areas nearer to famous educational institutions, bazaar, bus stand and proximity to the office area to satisfy the requirement of respondents and avoid noisy areas. The companies should also consider the fund availability to support the customers in arranging installment payment.