Determinants of Homebuyer Decision-Making in Government-Sponsored Affordable Housing: A Study of Deen Dayal Awas Yojana Beneficiaries
DOI:
https://doi.org/10.65150/EP-jmrr/V1E6/2025-08Keywords:
Affordable Housing, Consumer Behaviour, Homebuyer Decision-Making, Deen Dayal Awas Yojana, Residential Real Estate, Haryana, IndiaAbstract
Purpose
Affordable housing has emerged as a critical policy instrument to address urban housing shortages in rapidly urbanizing regions of India. Despite the increasing implementation of government-sponsored housing schemes, limited empirical research has examined the factors influencing homebuyer decision-making in such policy-driven housing markets. This study aims to identify and analyse the key determinants influencing home purchase decisions of beneficiaries under the Deen Dayal Awas Yojana (DDAY) in Haryana.
Design/Methodology/Approach
The study adopts a quantitative, explanatory research design grounded in consumer behaviour and decision-making theories. Primary data were collected from beneficiaries of DDAY across selected districts of Haryana using a structured questionnaire. The measurement scale captures economic, locational, policy-related, psychological, and informational factors influencing housing choice. Data were analysed using Exploratory Factor Analysis (EFA) and Structural Equation Modelling (SEM) to examine the relationships between identified determinants and homebuyer decision-making.
Findings
The results reveal that perceived affordability, policy trust, location accessibility, and perceived value for money significantly influence homebuyer decision-making in government-sponsored affordable housing. Psychological assurance related to ownership security and transparency of the allotment process also plays a crucial role. Contrary to traditional real estate markets, speculative investment motives exert minimal influence, indicating a predominantly need-based purchase behaviour among beneficiaries.
Practical Implications
The findings offer actionable insights for policymakers, urban planners, and housing authorities to enhance scheme design, communication strategies, and beneficiary satisfaction. Strengthening institutional trust and improving infrastructure connectivity can significantly improve scheme effectiveness.
Originality/Value
This study contributes to the limited empirical literature on consumer behaviour in state-led affordable housing markets by integrating marketing and public policy perspectives. It provides a validated framework for understanding homebuyer decision-making in government-sponsored housing schemes within emerging economies.
References
1) Ajzen, I. (1991). The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211. https://doi.org/10.1016/0749-5978(91)90020-T
2) Ball, M., Lizieri, C., & MacGregor, B. D. (2020). The economics of commercial property markets (2nd ed.). Routledge.
3) Berry, M., Dalton, T., & Nelson, A. (2014). Housing affordability, urban development and the role of government. Urban Studies, 51(13), 2731–2748. https://doi.org/10.1177/0042098013513646
4) Chau, K. W., Ng, F. F., & Hung, E. C. (2001). The effects of improvement in public transportation capacity on residential price gradient in Hong Kong. Journal of Property Investment & Finance, 19(4), 397–410. https://doi.org/10.1108/EUM0000000005783
5) Chiang, Y. H., Chan, A. P. C., & Leung, B. Y. P. (2015). Determinants of residential property purchase decisions in emerging housing markets. International Journal of Housing Markets and Analysis, 8(2), 240–256.
6) Hair, J. F., Black, W. C., Babin, B. J., & Anderson, R. E. (2019). Multivariate data analysis (8th ed.). Cengage Learning.
7) Kotler, P., Keller, K. L., & Chernev, A. (2022). Marketing management (16th ed.). Pearson Education.
8) Mulliner, E., & Maliene, V. (2015). An analysis of professional perceptions of criteria contributing to sustainable housing affordability. Sustainability, 7(1), 248–270. https://doi.org/10.3390/su7010248
9) Opoku, R. A., & Abdul-Muhmin, A. G. (2010). Housing preferences and attribute importance among low-income consumers in Saudi Arabia. Habitat International, 34(2), 219–227. https://doi.org/10.1016/j.habitatint.2009.09.006
10) Ringle, C. M., Sarstedt, M., Mitchell, R., & Gudergan, S. P. (2020). Partial least squares structural equation modeling in HRM research. The International Journal of Human Resource Management, 31(12), 1617–1643. https://doi.org/10.1080/09585192.2017.1416655
11) Sheth, J. N., Newman, B. I., & Gross, B. L. (1991). Why we buy what we buy: A theory of consumption values. Journal of Business Research, 22(2), 159–170. https://doi.org/10.1016/0148-2963(91)90050-8
12) Singh, R., & Thakur, R. (2018). Consumer trust and risk perceptions in real estate purchases: Evidence from emerging markets. Journal of Consumer Behaviour, 17(5), 430–445. https://doi.org/10.1002/cb.1731
13) UN-Habitat. (2016). World cities report 2016: Urbanization and development – Emerging futures. United Nations Human Settlements Programme.
14) Yap, J. B. H., Ho, C. C., & Skitmore, M. (2019). Affordable housing policy and homebuyer satisfaction: Evidence from developing economies. Habitat International, 89, 102004. https://doi.org/10.1016/j.habitatint.2019.102004
15) Zhang, X., Shen, L., & Wu, Y. (2013). Green strategy for gaining competitive advantage in housing development: A China study. Journal of Cleaner Production, 51, 262–271. https://doi.org/10.1016/j.jclepro.2013.01.005
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Dr. Vivek Kumar (Author)
This work is licensed under a Creative Commons Attribution 4.0 International License.
