CHAPTER – 1

INTRODUCTION
 2

1.1 INTRODUCTION

This project focuses on 'real estate transac4ons' within the Ko7akkal

municipality. The research aims to inves4gate and understand the real estate
transac4ons occurring in the municipality of Ko7akkal.

The real estate transac4on is a vital component of the real estate sector,
focusing on the intricate processes involved in buying and selling proper4es. This
dynamic industry encompasses a range of ac4vi4es and stakeholders, each playing
a crucial role in facilita4ng successful transac4ons.
Key elements of the real estate transac4on industry include nego4a4ons,
property valua4on, due diligence, and legal documenta4on. Real estate agents and
brokers, licensed professionals, act as intermediaries, assis4ng buyers and sellers
in naviga4ng the complexi4es of the transac4on process. They provide market
insights, facilitate property showings, and help in the nego4a4on of terms.
Financing is a pivotal aspect, with various op4ons such as mortgages, loans,
and investment partnerships enabling individuals and businesses to fund property
acquisi4ons. Legal considera4ons, including contracts, property rights, and
compliance with zoning regula4ons, are paramount to ensuring a smooth and
legally sound transac4on.
Moreover, the real estate transac4on industry is subject to regional
regula4ons and market condi4ons, making it impera4ve for professionals to stay
abreast of local trends and legal requirements.
In essence, the real estate transac4on industry plays a fundamental role in
facilita4ng the transfer of property ownership, demanding exper4se in nego4a4on,
finance, and legal intricacies to ensure successful and compliant real estate
transac4ons.
The real estate transac4on industry is not just about buying and selling
proper4es; it's a comprehensive process that involves a myriad of professionals
collabora4ng seamlessly. From real estate agents and brokers who facilitate
transac4ons to legal experts ensuring compliance, financial ins4tu4ons providing
funding, and inspectors evalua4ng property condi4ons — each plays a crucial role
in the successful execu4on of real estate deals.

3
1.2 OBJECTIVES

# To comprehend real estate transac4ons in the municipality of Ko7akkal in the year

2023-2024.

# To comprehend the poten4al for real estate inves4ng.

# To understand how real estate might serve as an infla4on hedge.

1.3 STATMENT OF PROBLEM

The statement of the problem in the real estate transac4on industry could include
challenges such as lack of transparency, delayed transac4ons, high transac4on
costs, and poten4al fraud risks. Addressing these issues is crucial for enhancing the
overall efficiency, security, and effec4veness of real estate transac4ons.

1.4SCOPE OF STUDY

The scope of a study on the real estate transac4on industry could encompass a
variety of areas. It may include examining transac4on processes, technology
integra4on, legal frameworks, market trends, risk management, stakeholder roles,
and the impact of regulatory changes. The goal is to gain a comprehensive
understanding of the industry dynamics and iden4fy opportuni4es for
improvement or innova4on.

* To Inves4gate current market trends, demand-supply dynamics, and economic

factors influencing real estate transac4ons, providing insights for be7er decision-
making.

* To study about economic factors influencing real estate transac4on

* To understand various risk associated with real estate transac4ons, including

financial, legal, and market risks, and propose strategies to mi4gate them
effec4vely.
 4

1.5 RESEARCH METHODOLOGY

The following methodology was used for the study:

A – Type of data
Based on primary and secondary data, the materials required for the study have
been gathered.

Primary data
Primary data are those that the researchers have observed and documented for the
first 4me to the best of their knowledge. The structured ques4onnaire is the
method of data collec4ng employed in this study. Convenience sampling was the
method used for the study, and 50 respondents made up the sample size.

Secondary data
Secondary data refers to pre-exis4ng informa4on that has been gathered by
another party and subjected to sta4s4cal analysis. The main sources of secondary
data are Government agencies, Banks and Mortgage lenders

B – Sampling size
The structured ques4onnaire is the primary tool used in this inves4ga4on. For the
inves4ga4on, fi\y samples are used to gather data. It is beneficial to get more
updated data from the responders.

C – Sampling Methods
The convenience sampling approach was used to obtain 50 samples of primary data
for this study, with reference to the Ko7akkal municipality.

D – Tools of data collec;on

Through government en44es, the study's primary data is gathered. The surveys are
discussed with landowners and real estate professionals.
 5

E – Tools for data presenta;on

• Tables
• Pie diagram
• Bar diagram
• Percentages

1.6 LimitaBons of study

• The study is limited to Ko7akkal municipality.

• The maximum number of responders is 50.
• External factors like economic changes, policy shi\s, or unforeseen events
may affect the study's findings' relevance and applicability over 4me.
• The study is conducted during a specified 4me span.
 Chapter – 2
REVIEW OF LITRATURE
 7

The direc4on of the study has been influenced by a number of Government reports,
research papers from Journals, guidelines, industry reports and legal compliances.
An extensive review of literature related to the study help in developing the broad
conceptual basis for the research. A large number of widely reputed journals,
Conference papers, published, Consultancy and industry reports of world
renowned firms and Government guidelines cons4tuted the main reference
material of the study. The literature Review of the study has been structured in the
following way 1. Real Estate in General –Introduc4on 2. Housing and Urban
development 3. Real Estate Pricing 4. Valua4on of Real Estate 5. Buying Behaviour.
6. Research gap. 2.1 Real Estate in General –Introduc4on Naik, D.D. (1981) explains
"housing is an essen4al element of life for most human beings. The modern concept
of housing does not limit the idea of housing merely to the provision of shelter.
Porter, Michael E. (1998) in his study explained Studying the nature of real estate is
complex considering that it is not a product or service, per se, but a whole sector,
comprising of dis4nct businesses. Towindo Tichaona (2013) in his research study
realized that the real estate and property management industry also plays a crucial
role towards the country’s Economic growth, this researcher found it necessary to
take a keener look into this neglected, almost invisible, but very significant sector
in the city of Beira, the second capital of Mozambique. The topic of this area of
study, `Challenges Facing the Real Estate and Property Management in Beira,
Mozambique`, has not been seriously explored at na4onal level in general, and at
local (provincial level) in par4cular. As a ma7er of fact this specific area of study,
that is both management and policy formula4on in nature, is altogether a rela4vely
new territory for the rest of the country. Singh, Vandna and Komal (2009) in their
study defines as Real estate is o\en considered synonymous with real property, in
contrast with personal property. Hui Deng (2006) concludes that the real estate
development, consis4ng of housing projects in China, is a significant sector for the
local government to collect user charge revenues as a complement of rela4vely low
tax collec4ons from this industry. The user charge revenue contributes greatly to
support local public expenditures such as infrastructures, public u4li4es and public
facili4es which are important to local growth. Mi7al Bharat. (2007) has revealed
that Indian real estate has huge poten4al demand in almost every sector especially
commercial, residen4al, retail, industrial, hospitality, healthcare, etc. Real estate
consists of four elements: the land surface, the sub-surface, the airsurface; the
permanently affixed objects and fixtures; the appurtenances or incidental rights
a7ached to the use of the proper4es therewith; and the immovable proper4es
belonging to the landowner in law (Ade4loye, 2013) 2.2 Housing and Urban
development Rao, C.H. Gopinath. (1988) argues housing shortage is a universal
phenomenon. It is more acute in developing countries. In lndia the backlog by 2000
A.D is about 4.5 million housing units which has to be built every year.

Parekh (1988) states, the formal ins4tu4onal funding of housing was Rs. 1,071, I8
crores and informal funding was Rs. 3,10,805 crores in the year 1982-83. Hence
about 75% of the investment in housing was from informal sources. Harichandran,
C. (1989) stated that due to budgetary constraints and other pressing problems the
housing shortage and substandard houses have increased over the years In the
opinion of Bhalla (1991), the present housing shortage in the country, is es4mated
to be around 30 million dwellings. Misra, Sweta (1996) stated in her study the
importance of housing was universally recognised from the dawn of history. With
the advancement of knowledge and civilisa4on man became par4cular about
sanita4on, environment, privacy and loca4on of the house. He became conscious
of be7er facili4es which make his life easy and comfortable Patel Usha (1996) in her
study explains that at present housing through bank finance has been a part of
Bank's priority sector lending. Hansson Anna Granath, (2017) in her research
wri7en against the background of intense public debate on increasing housing
shortages and housing policy reform in Germany and Sweden. Poten4al reforms to
increase housing development volumes, especially in the affordable segment, are
analysed using theories of ins4tu4onal change with focus on urban planning,
building law and housing policy. The instruments an alysed are divided into
measures intended to increase housing supply elas4city and targeted affordable
housing measures. Three measures intended to increase housing supply elas4city
that could be transferable to Sweden are iden4fied: 1) Development planning could
be reformed through facilitated procedures, the introduc4on of private ini4a4ve in
planning and new incen4ves of planning authori4es. 2) The planning and building
legisla4on could be reformed to facilitate building approvals in rela4on to serial
housing construc4on, which in turn could increase the number of affordable homes
being built. 3) City housing policy could promote housing development through
more intense use of the policy instruments of organisa4on, urban planning,
municipal land and subsidies, with city organisa4on and poli4cal a7en4on to
housing markets being iden4fied as crucial. However, effec4vely targeted
affordable housing policies are difficult to implement under the current Swedish
housing policy regime. In the short term, Swedish housing policy should therefore
concentrate on housing supply elas4cityenhancing measures. However, considering
the increasing pressure on the affordable housing supply and future expected
demographic changes, public discussion of poten4al future solu4ons would be
valuable. A first step would be to compile housing sta4s4cs such that the affordable
housing shortage and the opportuni4es to design effec4ve measures to counter it
could be be7er understood. Borthakur Manjit. & Nath Bhrigu Kumar. (2012) in their
study found that during the last 20 years, the Guwaha4 metropolitan area has
undergone phenomenal change in urban landscape that resulted in the loss of
natural land cover. As a result, the surface temperature of the city has increased
and a prominent urban heat island is formed in and around the se7lement areas.
All these have severe environmental and health consequences. The land use
regula4on plan of GMDA's Mater plan can be a tool for sustainability of natural land
cover. But the con4nuous interven4on of human se7lement to natural land covers
in Guwaha4 metropolitan area has revealed the failure of land use zoning and
regulatory ac4on. The metropolitan development authori4es should have strict
regula4on in the green belt and eco sensi4ve areas of the city. Social forestry in the
green belt areas, light color surfaces in residen4al units, planta4on in the roof of
buildings and trees along by the roads, may be some countermeasures of the heat
island effect in Guwaha4. The residen4al real-estate industry in India is complex
and dynamic. Varying economic and demographic characteris4cs across the country
result in differences in the housing markets in different ci4es. While soaring prices
have led to specula4on about a housing bubble in large ci4es like Mumbai and
Delhi, prices in 4er-II and 4er-III ci4es such as Kochi and Hyderabad have remained
rela4vely stagnant (NHB, 2013). Manta Rinku (2014) in his research paper described
the process of Urbanisa4on by which means increasing propor4on of the country’s
popula4on starts residing in urban areas. Urbanisa4on is related to the core
concern of Urban Geography. It stands for the study of Urban Concentra4on and
Urban phenomena. By Urban Concentra4on what is meant in the different forms of
urban sesng; and by urban phenomena we mean all those processes that
contribute to the development of urban centers and their resultant factors. Here he
focus the patern of Urbaniza4on in India as well as in the state of Assam. He has
also gave a clear picture of urbaniza4on of the Guwaha4 city. He has described the
factors of urbaniza4on in the big and small ci4es in the state of Assam. According
to Census an urban area was determined based on two important criteria, namely:
: (i) statutory administra4on; (ii) certain economic and demographic indicators. The
first criterion includes civic status of towns, and the second entails characteris4cs
like popula4on size, density of popula4on, and percentage of the workforce in the
non-agricultural sector. Demand for housing has increased in recent years due to
rising per capita incomes, the increasing penetra4on of housing finance, and
increasing popula4on density in urban areas. The growing middle class, expected
to grow from 224 million to 583 million by 2025, has added to exis4ng pressure on
the demand for housing (Mustafi, 2013). 2.3 Real Estate Pricing : Quigley, J.M.
(1999) argues that, although economic fundamentals are important determinants
of house prices, such factors s4ll leave a large share of changes in real estate prices
unexplained.

Farlow (2004) stated that the fundamental determinants of house prices in this
efficient market are income, interest rates, housing stock, demographic changes,
credit availability, and the tax structure. Case and Shiller (1989) find posi4ve serial
correla4on in single family homes. In addi4on, they conclude that informa4on
rela4ng to real interest rates, which should be an important determinant, does not
appear to be incorporated into the pricing of housing Antonina, Mavrodiy. (2005)
in a study focussed on the main determinant factors of Real Estate prices.
Inves4ga4on of Kiev real estate market confirms the influence of the different
macro and micro factors on real estate market. In this study the effect of changes
in GDP, income level, popula4on in interest rate is examined. The analysis inferred
the direct rela4onship between GDP, income level, popula4on and housing prices,
while changes in interest rtate nega4vely affect price level. Es4ma4on result also
provide the evidence of the rela4onship between micro factors and housing prices.
Loca4on and qualita4ve a7ributes appear to have significant effect on the real
estate prices. Bardhan et al (2004) analyzed the influence of globaliza4on and
openness of the country on real estate rents. Since rents are highly correlated with
the price this study can also be used for the price analysis. The paper considers 46
major world ci4es and concludes that higher openness increases rents and hence it
can be assumed that real estate pieces rise as well. In the analysis such variables
influencing real estate market are chosen: urban wages and price of services, gross
domes4c product and gross domes4c product per capita, city popula4on,
openness. The es4ma4on results confirm the assump4on that openness influence
real estate prices posi4vely as well as GDP. Besides, higher wages, higher services’
prices and larger city popula4on result in higher rents and it can be expected to lead
to higher prices through an increase in demand.

Iman Abdul Hamid Mar and Tan Yu Tian, (2013) in their study had provided evidence
of how people in a developing market value environmental amenity in the context
of house purchase. Primary data from a ques4onnaire survey were collected in
order to iden4fy important factors of view. The results have shown that view impact
was the most important aspect of environmental amenity that influences house
prices in the study area. Besides, homebuyers in Terengganu could have regarded
sea, river, and mountain as the key sources of environmental amenity in a
descending order. Results from both interviews and regression analysis have
indicated that sea view as the most valued environmental amenity. Jin and Zeng
(2003) in their study developed a general equilibrium model that inves4gates the
rela4onship between business cycle and residen4al investment as well as house
prices. The study concludes that monetary policy and nominal interest rate affect
real estate prices; taxa4on is also considered to have an effect on real estate market.
Besides, a strong correla4on between house prices and GDP was revealed. Case et
al (2000) in his study discussed the correla4on of cross country real estate cycles
and define the main determinants of real estate returns movements. It is
considered that real estate cycles are defined by fluctua4on of main economic
variables which are correlated across countries. The fact that real estate is not
portable but differen4ated good contributes to the restric4on of the compe44on
across markets and countries; therefore the correla4on between markets should be
low. Despite that there is empirical evidence of the cross country co-movements in
interna4onal property returns. The conclusion of the research is that cross country
correla4on of real estate markets is due to the influence of the global GDP
movements. Real estate markets are considered to be affected by the GDP changes
which are highly correlated across countries. GDP is also indicated as an important
determinant of the real estate cycle by other researchers, cited below. The other
inference of the study is that the real estate market is affected by the mix of global
and local economic factors. Smolen, Moore and Conway (1992) in a study presented
another study of landfill impacts on housing prices. Their study focused on an
exis4ng landfill in the Toledo, Ohio area and a proposed landfill in Sylvania,
Michigan, near Toledo, from 1987 to 1990. The exis4ng landfill was a depository for
low level nuclear waste, and the proposed facility was to be of the same type.
Smolen, Moore and Conway analyze price effects by distance from the exis4ng
landfill through a hedonic pricing model, with living space, number of half baths
and distance to the landfill as the independent variables. They further divide the
sales into three proximity rings and es4mate separate equa4ons for each ring. For
the exis4ng landfill, the results show a highly significant rela4onship between
distance and price for houses located less than 2.6 miles from the facility. This effect
lessens in the next ring, 2.6 to 5.75 miles and disappears from 5.75 miles out. The
effect in the inner rings does not appear to change over 4me. For the proposed
landfill, there was a significant distance effect following the announcement of the
facility, which became insignificant once the proposal was rescinded. This is nearly
the same finding as Kiel and McClain (1996). The finding that the price effects of
the exis4ng landfill do not diminish over 4me seems to be consistent with Reichert
(1999). Anand, S. (2010) in his study examined how the macroeconomic
environment and monetary policy impact trends in house prices in different ci4es.
Gill, A,S.P Sharma, H.S Mand, N. Mathur, 2012[4] .The globaliza4on and the
emergent of Mul4na4onal Corpora4on in India results to the growth of real estate
market and economic growth. Moreover, growth of popula4on, rising in income
level, rapid urbaniza4on factors influenced to the growth of Indian real estate
market. Since the Indian real estate market is emerging market in under developed
economy, the role of real estate investors’ play and vital role of Indian economy 2.4.
Valua4on of Real Estate Ratcliff, R.U.(1972) proposed a restatement of valua4on
theory emphasising that valua4on is a predic4on of human behaviour under
uncertainty. He discussedtransac4on zones poin4ng out that depending on
nego4a4on skills, any one of a range of prices might emerge from a sale process.

Babawale & Omirin M.M. (2011) : This study confirmed that individual
characteris4cs of valuers in par4cular, and that of the firms they work for to a lesser
degree, contribute significantly to valua4on inaccuracy accoun4ng for
approximately53% of inaccuracy in real estate valua4on in the study area. This is in
line with Levy and Schuck (1999).In par4cular, the valuers’ years of experience and
level of exposure made the strongest contribu4on to valua4on inaccuracy in the
study area. Experience and exposure of valuers refers to the dura4on, scope and
depth of valuers’ prac4ce which have direct implica4ons on skill acquisi4on and
exper4se. The average number of valua4ons undertaken by valuers over a given
period of 4me also made unique significant contribu4ons at the desired level of
significance probably because this has a direct correla4on with skill acquisi4on and
exper4se. In a similar study conducted in the UK by Bre7en & Wya7 (2002), the
respondent valuers were of the opinion that the principal cause of valua4on
inaccuracy is the knowledge and experience of valuers regarding the property type
and more par4cularly the loca4on. Going by the results, older and larger firms have
not turned their long years in prac4ce and/or their size to any advantage for
improved services as inaccuracy is a phenomenon common to all firms in the study
area regardless of their size and age. Kimberly, Goodwin (2017) : Analyzing the
physical and environmental factors in a real estate market analysis benefits the
financial analysis in a number of ways. A thorough analysis of the loca4on’s physical
and environmental factors provides accurate es4mates of development costs.
Property owners and developers can be7er determine the financial feasibility of
any project. The analysis also allows owners to create be7er pro forma financial
statements because they understand the condi4ons that ul4mately influence the
neighborhood rental rates. Paying a7en4on to the physical and environmental
factors of a property can help owners and developers to make the best financial
decisions possible. Mehmet Alkam & Ferihan Oz4dam (2014) : It is essen4al to value
real-estates which play a very important role in the economical and social life of
man. Land valua4on which has gained great importance in our country in recent
years has not yet been studied scien4fically. Because of this finding different values
for a real estate leads to some economical and social problems in property tax,
na4onaliza4on, purchase and sale and banking. So valuing should be objec4ve,
correct and accredited considering the facts of quality, environment and usage
condi4ons. As a result, an informa4on system should be developed that can help a
valua4on expert to obtain social, legal and technical data on a real estate, reach its
loca4on easily and analyse certain informa4on. It is possible to use Geographical
Informa4on Systems (GIS) that gather all data according to certain standards
analyse them and present them effec4vely to the user. In this study, a design of
system which is likely to help real estate valua4on firms and valua4on experts in the
sector of valuing real estate’s works efficiently, fast and frui{ully is aimed. Thus, the
data which experts need, processing steps in the period of developing the system
and so\ware are presented. Then, the data based on apprising is carried out at a
region of the Municipality of Yenişehir, Mersin. In the last stage, the data is stored;
the inquiry is done on the data which is stored in the system. In this study, with
designing system, obtaining the present data is become easier, comparing and
checking appraising processes have been provided to valua4on experts. In addi4on,
job efficiency and improvement of success are presented to firms and valua4on
experts. A formal theory of value is needed in order to ar4culate researchers‘
contemporary view of what a property is worth. It is only when the true economic
value of an asset is ascertained that it is possible to determine whether a property
is under or overpriced Brown and Matysiak (2000). Mundy (1992) sets forth a
conceptual and valua4on framework that has influenced the appraisal profession.
Reitera4ng the ideas of Patchin, Mundy (1992a) asserts that the ‘‘value paradigm’’
for contaminated property real estate damages is the difference between the value
before, or ‘‘clean,’’ and the value a\er, or ‘‘dirty.’’ Mundy (1992) goes on to note
that from a mathema4cal perspec4ve, the difference ought to be the cost to cure
or remediate the property. However, Mundy notes that in prac4ce this is not the
case since contaminated proper4es sell for less than the cost to cure difference.
Mundy ascribes this inconsistency to an addi4onal effect on value termed s4gma.
S4gma in Mundy’s framework is directly related to the level of uncertainty or risk
associated with contamina4on which, in turn, is influenced by the amount of
informa4on the market has about the contamina4on and its remedia4on. Victor
Abaecheta Akujuru (2014) : The valua4on of any property follows a process which
if followed results in a reasonably consistent determina4on of value. While the
valua4on of proper4es usually traded in the market is reasonably rampant and
within the everyday pre-occupa4on of the professional valuer, the valua4on of
contaminated land occurs occasionally and poses serious challenges to the valuer
in the absence of any framework. The issue of contamina4on by oil pollu4on has
been very rampant in the Niger Delta wetlands of Nigeria and valuers called upon
to assess damages resul4ng there from have had to adopt valua4on processes
prescribed for marketable real proper4es and neglec4ng to value the ecosystem
goods and services that exist in the wetlands, due to the absence of any framework
for such valua4ons. The valua4on methods used in valuing proper4es compulsorily
acquired by Government being adopted in valuing contaminated proper4es
including wetlands is contrasted with that used for assessing the compensable
value of damages due to contamina4on and the exis4ng valua4on framework
examined to confirm its applicability to valuing contaminated wetlands. This
research aims to develop a framework for the assessment of the compensable value
of damages due to contamina4on to wetlands by oil pollu4on in the Niger Delta
wetlands. The research adopts an inter pre4vist philosophy, an abduc4ve logic with
a mixed method approach and a case study strategy to examine the valua4on
prac4ce when faced with the challenge of valuing an oil contaminated wetland in
the Niger Delta. The case study strategy afforded the opportunity to apply several
data collec4on techniques and analysis. It is argued the behaviour of valuers is a
subjec4ve phenomenon that should be interpreta4vely studied to understand
valuers’ behaviour. Literature and documents were deduc4vely analysed while a
ques4onnaire survey was conducted among the valua4on firms and triangulated
with data from semi-structured expert interviews of some purposively selected
firms. The increasing importance of real estate to the social, poli4cal and economic
life of different economies has craved the indulgence of researchers into dearth of
informa4on for proper valua4on of proper4es. Valua4on provides the impetus for
major property tax reforms and other public policy measures (Calhoun, 2001).
Kummerow, M. (2011) contends that the profession of real estate valuers arises
because each real estate asset is different from all other proper4es since proper4es
are heterogeneous. Researchers and prac44oners have found that hundreds of
factors might affect prices in various situa4ons. Moreover, proper4es trade
infrequently, perhaps once every 5-10 years for the average house. The amount of
sales evidence varies widely in par4cular cases, but generally there are few sales of
proper4es similar enough to be considered as comparables and none of iden4cal
proper4es. The underlying theory of value of Sales comparison approach is that the
value of the real estate is based upon the views of the typical buyer and seller of
such property, independent of cost, to create or wear and tear (Miller and Geltner,
2005). The underlying value theory of cost approach assumes that the value of the
property is inherent in the cost to create the property based on land acquisi4on and
building costless wear and tear and deprecia4on (Miller and Geltner, 2005). Avi7ey,
et al., (2006) iden4fied 6 main steps concerning the valua4on process. These
included specifying the property legally and physically, the property rights related
to the current es4mate, the purpose of the valua4on and the valua4on date.
Compara4ve market data is then gathered in which the skill, knowledge, and
experience of the valuer become essen4al. The final step is to apply appropriate
methods and techniques to derive the es4mated value (Avi7ey, et al., 2006). Sibel
Selim(2008) said that Valua4on of property is required by a number of players in
the marketplace such as real estate agents, appraisers, brokers, property
developers, investors, market researchers, analysts, other specialists and
consultants. 2.5 Buying Behaviour The features of the apartment structure itself will
be an important determinant of a household choice of residence (Quigley, 1976).
Neighbourhood quality, local public services and quan4ty of housing services also
affect the choice of residence (Friedman, 1980; Gabriel and Rosenthal, 1989).
Louviere and Timmermans (1990) found that another important influences is
property loca4on. According to Sidin, et al (2004) features of the apartment will be
a significant determinant of a household choice of residence. This study makes a
closer look into the a7ributes in respect of the three vital factors (viz. Price, Loca4on
and Quality) Buying an apartment is one of the most significant economic decisions,
and it requires gathering a lot of informa4on regarding its features, noted Batra, S.
K and Kazmi(2008) in their book on consumer behaviour. Price, availability of easier
loans has revolted the preferences and choices of consumer related to home buying
decisions pertaining to buy a flat or residen4al villa (Jomon Lonappan, 2011). A
recent study by the present authors, Nasar K. K & Manoj P K (2013) has analyzed
the behavior of real estate investors in making investment decisions, like the various
personal and behavioral factors influencing their purchase decisions. Salzman &
Zwinkels (2013) also provided a broader explana4on of psychology and social
determina4on of real estate decision making.

Kathrvel, N., Vimalagracy, P. (2014)Factors like high demand, low supply and limited
income especially for salary class consumers affects the buying in real estate.
Therefore it is important for real estate marketer to understand the behavior of
prospect and to iden4fy the factors influencing the customer choices beginning of
new development. 2.6 Research Gap From the above Literature review the
researcher has found that though various study have been carried out but mostly
they are related to introduc4on of real estate, urban development and housing
problems, Real estate pricing, buying behaviour etc. The researcher has found very
few study related to valua4on of real estate property in context of Guwaha4 City.
The researcher had not come accross any study related to valua4on of real estate
property in the State of Assam as well. Moreover considering status of Guwaha4
City as gate way of North East India coupled with Government's Flagship concept of
'Act East Policy' as well as inclusion of Guwaha4 within Smart City Scheme of theme
it is only but accepted that Guwaha4 City shall be witness and over whelming
change in respect of use of real estate resources and therefore, such studies like the
instant one becomes an inherent necessity. So, this study had been planned and
carried out.