Hedonic Pricing Model With Respect to Gated Housing Attributes in Hyderabad

The fostering IT sector in Hyderabad has developed a demand for new residential accommodation in the city of Hyderabad. The suburban and urban areas of the city have been witnessing a rise in number of new housing projects. This has lead to the change in the dynamics of the valuation of the housing units in the city. In this study, an attempt has been made to value the housing units based on its intrinsic and extrinsic characteristics. To do so, the Hedonic Pricing concept has been used which is based on the multiple regression techniques to regress the pricing function and to study the individual as well as the overall effect of the characteristics on the value of the property. Factors that determine the house prices in Hyderabad are analyzed in this study using data collected from various sources such as the property expo, site sales office, sample flat visit and company's website. Data collected for 20 gated housing units in different areas of Hyderabad has been used to generate the model. The results showed that the following variables were significant: number of stories, proximity to bus stand and railway station, number of rooms and whether the house is ready to move or not. They accounted for 88.44% of the variations. The Hedonic Pricing concept is thus used to model the relationship between the sale price of a house and the housing attributes which will prove as a basis for any real estate transaction for a project developer, a house buyer, loan granting banks and insurers.