Consumer Behaviour and Preferences in Apartment Purchasing Decisions: Case Study in Proposed Apartment Project in Malabe, Sri Lanka

Abstract

The escalating demand for housing in suburban regions of Sri Lanka necessitates a comprehensive understanding of consumer preferences in apartment purchase decisions. This study investigates factors influencing apartment purchase intentions in Malabe, a rapidly emerging suburban growth center near Colombo. Previous research has focused primarily on high-end condominiums in Colombo, leaving a gap in understanding suburban preferences and end users’ priorities. The study aims to identify key factors affecting apartment purchase decisions among potential buyers and examine preferences regarding pricing, financing, amenities and sustainability features. A Quantitative research approach was employed, using purposive sampling to collect data through a structured questionnaire survey administered to 194 respondents interested in real estate transactions. Descriptive statistics were used to summarize responses and rank factor importance. Key findings reveal that price and proximity to work are the primary factors influencing apartment purchase decisions. Three-bedroom apartments dominate demand, especially in higher price ranges. External financing is the preferred funding method, but buyers tend to maintain conservative loan-to-price ratios. Eco-features are considered important, with most respondents willing to pay a premium for sustainable features, although cost sensitivity remains high. These insights provide valuable guidance for developers and policymakers in tailoring suburban apartment projects to meet market demands while addressing sustainability concerns.