Estimating the Drivers of Urban Apartment Valuation by Using Hedonic Pricing Models: A Study on Dhaka City

Abstract

Considering the population and land scarcity of Dhaka city, understanding the accommodation preferences as per the price has become a complex issue. This study has tried to investigate the drivers that shape the valuation of apartments in Dhaka city. To do that, Numerous articles have been studied and the number of bedrooms, bathrooms, balconies, apartment size, land price, the proximity of the city center and green spaces are considered as the predictors. A structured questionnaire was generated and data were obtained from a convenience sample of 265 consumers living in various locations of Dhaka city. The Multiple Regression Analysis was performed to test the research hypotheses where the apartment size, land price, and proximity to green spaces were found as the key predictors and the rest were found to be insignificant. Guidelines for the stakeholders were also provided as per the research outputs. Finally, the limitations of the research and future research avenues have been discussed.