Analysis of Demand for Primary Market Taking into Account its Characteristics

<p style="text-align: justify;"><span style="text-align: justify;">C</span><span style="text-align: justify;">omplexity of analysis of the various factors that characterize the behavior of consumers is one of the main problems of companies that operating in the real-estate market. However, various factors influence the decisions not only on the demand side, but also on the supply side. There are quite complex and invisible at first glance relations between supply and demand that leads to the necessity of data analyze of potential consumers of residential real-estate. Consequently, firms should constantly study preferences of potential buyers</span></p><p style="text-align: justify;">Thus, the aim of this work is to study the characteristics of housing and socio-demographic variables that have the greatest influence on the behavior of consumers in the primary residential market. It is expected that results of the analysis will help construction companies determine housing characteristics which require maximum of attention when constructing the new object. Also, the results will allow to assess the demand for objects according to various socio-demographic parameters of the population. To reach stated aim it is necessary to perform several tasks: to study the literature; prepare and conduct a study to determine the characteristics that have the greatest impact on consumer choice (create questionnaire, to collect, edit and analyze database of costumers of development company <em>Normann</em>); to determine differences between the importance of housing characteristics among various socio-demographic groups.</p><p style="text-align: justify;">The main method used in this research is method of conjoint analysis, designed to study the preferences of individuals. Method of conjoint analysis is a unique method of collecting, processing and subsequent data analysis. This method is based on the assumption that due to &quot;penetration on the subconscious level&quot; of the individuals their preferences for different objects can be examine more qualitatively.&nbsp; Characteristics of objects provide to respondents not separately, but jointly. After that respondents are asked to rank them according to their preferences. To conduct the study unique primary database is used. It was formed on the basis of information collected through an interview of customers of St. Petersburg development company <em>Normann</em>. Total number of observations in the database is 163.</p><p style="text-align: justify;">Obtained results show that to a greater extent on the choice of buyers of residential properties have impacts, except the reputation of a builder, infrastructure of the district, distance to the subway and the particular qualities of layout of the housing units. At the same time, the demand for a total size of ​​housing unit is most strongly influenced by such socio-demographic characteristics, as a single person that will reside in the housing&nbsp; unit, car ownership and purchasing housing unit with own funds. The first two parameters have a negative impact on the total size of ​​the apartment, while the last parameter has a positive effect.</p><p style="text-align: justify;"><strong>Keywords:</strong> primary residential real estate market, method of conjoint analysis, the influence of socio-demographic parameters on demand, preferences of consumer of residential real-estate.</p><p style="text-align: justify;">&nbsp;</p><p>&nbsp;</p>