TENURE-WISE DETERMINANTS OF RESIDENTIAL PROPERTY VALUE: AN APPLICATION OF HEDONIC PRICING MODEL IN BALEWADI, PUNE, INDIA
TENURE-WISE DETERMINANTS OF RESIDENTIAL PROPERTY VALUE: AN APPLICATION OF HEDONIC PRICING MODEL IN BALEWADI, PUNE, INDIA

Summary/Abstract: With housing being an important durable good consumed by the citizens, the people living in cities make their choice of residential property based on a set of factors (also, termed as determinants). Therefore, the property value is determined by multiple set factors that can be broadly categorised under - individual characteristics, internal amenities and external infrastructure. Besides, property value is also influenced by the presence of employment centres and/or proximity to them in the suburban areas of cities. Hedonic pricing models are generally applied to identify such determinants/ factors. However, the combination of these factors may also vary according to the tenure of household – ‘owner-occupier’ or ‘tenant’. This paper is an attempt to capture the major determinants of property value tenure-wise in Balewadi, Pune. Besides the above factors, it is hypothesized that the presence of large employment hubs like Cummins and proximity to other employment hubs like Hinjewadi may have an impact on residential property value in suburban areas like Balewadi, Pune. Based on the field survey of a sample of residential properties in Balewadi using a structured questionnaire, the study performs data analysis using conventional regression approach to identify the significant determinants of property value in Balewadi for both tenures. It has been found that the determinant factors are different for owner-occupiers and tenants.

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