An empirical investigation on factors influencing to consumers’ purchasing decision towards the luxury apartments in Colombo and suburbs, Sri Lanka

Urban vertical luxury living is becoming particularly widespread, and the abundance of luxury apartment buildings in Colombo continues to transform the city. The main objective of the study is to identify the factors that significantly influence the purchasing decision of customers in respect of luxury apartments with reference to Colombo and suburbs and further investigation of the level of importance of the attributes of identified factors on the customers’ point of view. Through a comprehensive literature review, 08 main factors and 53 attributes were identified to examine the customers’ purchasing behaviour in luxury apartments. The study has revealed that the most influencing factor is Financial feasibility of the consumer while the Physical factors and Locational importance are equally significance. Basic Amenities, Environment, Goodwill, Emotional and Recreation have ranked accordingly. The 53 attribites were deeply exposed the contrast of the customers’ consideration and preference. In addition to the financial attributes, dwelling type, dedicated parking units, and floor area of the apartment, electricity backup, security, greenery spaces, and developer have shown the more than 80% of customers’ attention and predilection as the most important attributes which influenced to customers’ purchasing dececision on luxury apartments

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

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; Colomb