A Study on Environmental Factors’ Influence Towards the Potential Buyers’ Decision on Luxury Apartments in the City of Colombo and Suburbs

Abstract

Luxury vertical living in urban and suburban localities has become increasingly popular in Sri Lanka over the past few years. The residential sector is the most visible of real estate asset class in Colombo and known to be the closest to personal desires of urban community. The main objective of this study is to identify the environmental attributes which significantly influence the customer’s purchase decision of luxury apartments with reference to the Colombo city and suburbs. Through a comprehensive literature review, a conceptual framework was developed in which 13 attributes identified associated with environmental characteristic and external conditions of the apartments. The questionnaire survey was carried out for a convenience sample of 150 respondents. Principal component analysis was conducted to identify the significance of each attribute that influence on the criteria of buyers’ decision. Out of the 13 attributes, Open Spaces, Water bodies, Nice Neighborhood, Prestige Neighborhood & Safety Neighborhood are identified as the most important, Air quality, noise from Traffic & Industrial Noise are identified as important, Ventilation & Abundant Natural Light are identified as the moderately important and the remaining Waste Water Treatment, Rain Water Harvesting & Solar Energy are identified as the less important. The study provides insights for the investors in real estate market, but for planning professionals to understand the locational factors that influence on purchase decision of a buyer.

Keywords: Luxury Apartments; Environmental Factors; Prospective Buyers’ Decisions; Colombo