V3I6P63

Factors Influencing Home Purchase Decisions Among First-Time Home Buyers

Lakshmikanth S^1*, Dr. Shekappa N²

Abstract

India’s residential real estate sector stands at a pivotal juncture, shaped by rapid urbanisation, shifting demographic profiles, and evolving consumer aspirations. For first-time home buyers, the purchase decision is among the most significant financial and emotional commitments of their lifetime, influenced by a complex interplay of economic, social, psychological, and locational factors. This study examines the key determinants of home purchase decisions among first-time home buyers in Bengaluru, Karnataka, using a structured survey administered to fifty respondents. Using purposive sampling, respondents were drawn from five distinct income brackets and five residential zones of the city. The study covers factors including affordability and loan eligibility, location and connectivity, builder credibility, property size and configuration, social influence, government schemes, and digital information access. Three hypotheses are tested using proportional analysis, weighted-score analysis, and directional frequency analysis. Findings reveal that 72% of first-time buyers cite loan affordability as the single most critical factor, 68% report that metro connectivity significantly influences their shortlisting criteria, and 100% confirm that the purchase decision involved at least one digital research touchpoint. All three hypotheses confirm significant influence of financial factors, location-related variables, and socio-psychological drivers on the home purchase decision. The study concludes with actionable recommendations for developers, financial institutions, and policymakers.

Keywords:

First-Time Home Buyers, Home Purchase Decision, Real Estate, Affordability, Location Preference, Housing Finance, Bengaluru, PMAY, Builder Credibility, Consumer Behaviour