Exploring Factors Affect

Customers Buying Behavior and

Satisfaction:
A Study
On
Real Estate Firms Operating in the
Greater Dhaka Region

EXPLORING FACTORS AFFECT

CUSTOMERS BUYING BEHAVIOR AND
SATISFACTION: A STUDY ON REAL ESTATE
FIRMS OPERATING IN THE GREATER
DHAKA REGION
Internship Research Study
(Submitted in partial fulfillment of the requirements of BBA Program)

Submitted by:
Syed Ahsan Pervez
Students ID: 090306

Supervised by:
Mehedi Hasan Md. Hefzur Rahman
Professor

Submitted to:
Coordinator
Internship & Placement Committee

Business Administration Discipline

Management & Business Administration School
Khulna University, Khulna
Date of Submission: March 24, 2014

March 24, 2014

Coordinator
Internship & Placement Committee
Business Administration Discipline
Khulna University, Khulna

Subject: Submission of Internship Research Study

Dear Sir,
Enclosed is the research study on the Exploring Factors Affect Customers
Buying Behavior and Satisfaction: A Study on Real Estate Firms Operating in
the Greater Dhaka Region which is submitted to you as an obligatory part of the
fulfillment of the internship/research program. This study was conducted to
identify customers preference and approach towards buying flat or apartments
which constitute the real estate market of Dhaka region.
Since the very onset I have collected information with utmost sincerity and tried
to interpret the collected information appropriately. I have devoted my effort to
make the research representing the fact. I am available for any further assistance
in interpretation or clarification.

Sincerely yours,
_____________________________
Syed Ahsan Pervez
Students ID # 090306
Business Administration Discipline
Approved By:
___________________________
Mehedi Hasan Md. Hefzur Rahman
Professor
Business Administration Discipline
Khulna University

Acknowledgement

First of all, I express my heartfelt gratitude to Almighty Allah who has given me
the opportunity of successful completion of this research.
I would like to express my gratitude and appreciation to the following people for
making this research study possible. I consider it a pleasure and privilege to pay
regards and thanks to Mehedi Hasan Md. Hefzur Rahman, Professor, Khulna
University for his kind guidance and encouragement in the whole process of
writing this research paper. I really appreciate his patience; tolerance and his
assistance in making this study a reality. My gratitude also goes to all the other
honorable faculties of Business Administration Discipline, Khulna University, for
their cordial assistance in completing this research. I appreciate their support, cooperation and teachings.
A word of thanks is also extended to all my seniors, juniors and classmates who
have helped me in many ways, for all their support, tutoring and encouragement.
Thanks are also due to all the respondents for cooperating in the collection of the
primary data. I would like to express my thanks to all of them for helping me in
getting

the

opportunity

to

complete

my

internship

research.

Executive Summary
Bangladesh is highly populated area. According to World Bank, in 2011 1174.33
people lived in per sq. kilometer in Bangladesh. Dhaka is the capital city of the
country which went through a massive urbanization and development. Thus most
of the people in the country try to relocate them in Dhaka city. As a result Dhaka
city has become even more densely populated area. Bangladesh already has high
population growth and scarcity of land problem. To counter the problem the best
solution is real estate development and high rise buildings. Upon this need of real
estate products, real estate business has seen tremendous growth in the industry in
last 10 years though mostly concentrated on Dhaka. But as the time passes, this
market is also developing in the adjacent areas of Dhaka city and in Chittagong
and Sylhet. Despite of these developments in the industry, there is no formal study
on the customers. Companies are operating based on their intuition of customers
demand. They dont provide what the customers want whereas the customers get
only what they provide. Still there are some scopes of customization but only in
interior decoration not in other segments. I tried to cover different demographics
of the population. Like sample are selected based on their current residence
location, their occupation and income level. I survey a total of 300 respondents.
Most of the people are not truly satisfied with their current residence location.
They prefer to relocate themselves mostly in Uttara and Dhanmondi. Some of the
customers also prefer Malibag, Mogbazar and Kakrail. We tried to look into
customers expectation and satisfaction level on this research. We have seen that
customers put high importance in interior and exterior decoration, even more
people want better utility services. But they are not that much concern about
material quality or financing options. They put medium importance in location of
the apartment and the brand value of the developer. Lastly in the satisfaction level
measurement, it tells that the customers are fully satisfied and according to them
the companies are providing everything they need them to. The satisfaction factors
are correlated with each other, which suggest that customers are satisfied with
what the companies are providing them. It was expected that people will not be
happy with their flat or their developers. But surprisingly after research, it portrays
a different picture. People are very much satisfied with what they are getting. In
aspects of material quality, developers honesty about different facilities of the flat
and pricing customers shows satisfaction.
v|Page

Table of Content
Executive Summary

INTRODUCTION
1.1 Background of the Study
1.2 Objective of the Study

08
09

1.3 Scope of the Study

1.4 Limitations of the Study

10
10

THEORITICAL FRAMEWORK & LITERATURE REVIEW

2.1 Real Estate Industry
2.2 Real estate Industry in Bangladesh
2.2.1 History of Real Estate in Bangladesh
2.2.2 Current Scenario of Real Estate Industry
2.2.3 Real Estate Industry in Dhaka
2.3 Customers Profile Of Real Estate Market
2.4 Market Segmentation
2.5 Decision Making Process of Real Estate

11
11
11
13
14
17
19
21

METHODOLOGY
3.1
3.2
3.3
3.4
3.5

Research Design
Sources of Data
Sample Selection
Data Collection
Data Analysis

26
26
26
27
27

ANALYSIS& FINDINGS
4.1 Demographic Analysis
4.1.1Demographic Analysis Based on Location
4.1.2 Demographic Analysis Based on Age
4.1.3 Demographic Analysis Based on Occupation
4.1.4 Demographic Analysis Based on Salary
4.2 Statistical Analysis
4.2.1Cross Tabulation Analysis of Age with Flat size
4.2.2 Cross Tabulation Analysis of Occupation with
Flat/Land
4.2.3 Cross Tabulation Analysis of Occupation with
Financing option
4.2.4 Frequency Analysis of Governing Factor
4.2.5 Frequency Analysis of Preferable Locations

29
29
30
31
32
32
33
34
35
35
36

4.2.6 Mean Calculation of Purchase factors

4.2.7 Frequency Analysis of site Visit
4.2.8 Correlation of Satisfaction Factors
4.2.9 Correlation of Satisfaction Factors With real
Estate Company Performance
4.3 Findings
CONCLUSIONS
REFERENCES
APPENDIX
Questionnaire
Tables and Figures

37
41
42
43
44
45

INTRODUCTION
The housing sector plays vital roles both in the context of the economy of
Bangladesh and serving the fundamental human right of shelter which actually
call for the awareness and analysis regarding various pertinent issues involving
the sector. These analyses include the size and contribution of the housing sector
to the economy, current market structure and trends in this sector, regulatory
framework governing this sector, various government policies and associated
challenges arising from recent economic crises and policy changes. Without
adequate information the players in this sector cannot plan and prepare themselves
for the challenges and opportunities. Besides, the government cannot make
appropriate policy interventions to make an appropriate balance between the
facilitation and regulation for the betterment of both this sector and its
contribution to the overall economy. Availability of proper information is also
necessary from the perspective of the investors so that they can make efficient
investment decisions. This is very vital as the sector grows to its matured phase,
investors has to be well aware of the facts and status of the industry. Various
linkage industries, particularly those who depend solely or heavily on the housing
sector need accurate information, facts and forecasts to safeguard their interests.
And last but not the least consumers cannot make the best use of their scarce
savings for their accommodation if they do not have proper information of this
sector. Thus, availability of more market related information will define, with
greater accuracy, the nature of the future development required in this sector.
Despite the significant growth of the housing sector in the recent past, good
research dealing with the development of this sector is lacking. This is
compounded by the fact that there is a lack of adequate statistical information.

1.1 Background of the study

Bangladesh is a small country with a very low per capita income. Here people still
struggle for the basic needs fulfillment. When still lots of people struggle to have
a minimum shelter, real estate products that is assumed to be very expensive, is
kind of extra luxury to the majority of the mass population. However, real estate
sector has been developed and it is growing with a good pace along with a gradual
8|Page

increase of its contribution in total GDP. Investments in this sector have been
increasing over time and competition has becoming sharper because of the
increased number of firms as well as stakeholders awareness. Government is
trying to build a proper framework for this business sector.
People who are in the high income brackets are the main customers of these real
estate products. But day by day involvements of the middle class in the society is
increasing. In this circumstance, government is trying to involve low income
people too by suggesting the real estate companies to plan for housing for these
people. As the involvement increases question of quality and satisfaction also
comes to the scenario.
The background of this research is those factors which lead the development of
the real estate business in Bangladesh along with an analysis of the market. At the
same time how people think about the quality of the real estate products are also
considered.

1.2 Objectives of the study

The broad objective of this study is to do a widespread research on the housing
sector of Dhaka city and around Dhaka city in Bangladesh, i.e. to gather and
compile all possible relevant data regarding the housing sector of Dhaka and to
provide accurate market related information for the decision makers. To sum up
the main objective of the research is to provide an insight for the developer
companies about customers preference according to target market, key decision
influencing factors, customers observation etc. so that they can function better in
the market and live up to the expectation of customers.
The specific objectives of this are:

To determine customers preferable factors in buying a flat/apartment.

Find customers desired financing options according to their profession.

To identify customers point of satisfaction during the period construction.

To identify the level of customers satisfaction with their apartments and

its developers.

9|Page

1.3 Scope of the study

The geographic scope of this research is confined within greater Dhaka region.
For the demand side, of the study representative samples were drawn from the
existing and potential consumers within greater Dhaka region.

1.4 Limitations of the study

While conducting the study, the research team faced several critical issues that
limited the scope of the research to some extent. Some of the limitations of this
study are as follows:

Unavailability of information was a major obstacle especially from

government organizations like NBR (National Board of Revenue), BBS
(Bangladesh Board of Statistics) etc.

Scenario of the developer companies outside Dhaka was not covered in

this report. Also only the customers within the city were considered in the
sampling frame, so it may not reflect the attitude of customers outside the
Dhaka city.

For the consumer survey, probabilistic sampling methods were not

selected because the complete sampling frame for the target population
was not available which was necessary to apply the usual probabilistic
sampling techniques. Besides, limited time and budget also guided the
researchers to go for non-probabilistic methods.

10 | P a g e

THEORETICAL FRAMEWORK AND

LITERARTURE REVIEW
2.1 Real Estate Industry
Real estate is "property consisting of land and the buildings on it, along with its
natural resources such as crops, minerals, or water; immovable property of this
nature; an interest vested in this; an item of real property; buildings or housing in
general. Also: the business of real estate; the profession of buying, selling, or
renting land, buildings or housing."
Land plus anything permanently fixed to it, including buildings, sheds and other
items attached to the structure. Although, media often refers to the "real estate
market" from the perspective of residential living, real estate can be grouped into
three broad categories based on its use: residential, commercial and industrial.
Examples of real estate include undeveloped land, houses, condominiums,
townhomes, office buildings, retail store buildings and factories.
Developers buy land, finance real estate deals, build or have builders build
projects, create, imagine, control and orchestrate the process of development from
the beginning to end. Developers usually take the greatest risk in the creation or
renovation of real estateand receive the greatest rewards. Typically, developers
purchase a tract of land, determine the marketing of the property, develop the
building program and design, obtain the necessary public approval and financing,
build the structure, and lease, manage, and ultimately sell it. Developers work
with many different counterparts along each step of this process, including
architects, city planners, engineers, surveyors, inspectors, contractors, leasing
agents and more.

2.2 Real Estate Industry in Bangladesh

2.2.1 History of Real Estate in Bangladesh
Bangladesh was an under-developed country historically.

In recent years it

became a developing country. As a developing country it has the burden of

11 | P a g e

massive population growth, which has been increasing over the year in last three
decades. Due to this over population, it has the lowest ratio of land to people.
Though it was not like this, if we go back a century, when people had sufficient
land per person to fulfill their need. This shortage of land created the residence
problem for the people. To overcome this problem, Bangladesh needed rapid
urbanization. Though a bit late, but still rapid urbanization were initiated in the
country. Still there were some problems with this urbanization process. The major
problem was concentrated urbanization. As the urbanization were concentrated
primarily in Dhaka and later spread out towards Chittagong and Sylhet. Due to
this concentration over-urbanization took place.
This urbanization is one of the key factors, why real estate business boomed in
Bangladesh in recent years. There was no formal real estate industry in
Bangladesh in pre liberation period. History if Bangladeshs real estate industry
started in 1970 with only five companies. But still it was not flourished till late
80s. In 1988 there were total 42 companies. Now-a-days there are 1500
companies who are operating in this industry though only 1081 of them are
registered in REHAB (Real Estate and Housing Association of Bangladesh). As
mentioned above, due to concentrated urbanization most of these companies are
operating around Dhaka city. The major reasons of this much concentration of
urbanization in Dhaka city are Rapid Population growth in the city by both local and migrated population
Lack of unused lands in the city
Very pricey lands in the city
Scarcity of residential area due to large area occupied by government
organizations like Dhaka University, Dhaka Cantonment etc.
Land owners motive or incapability to generated income from their land
without or by investing in it.
Problem arise from purchasing lands due to lack of knowledge about Acts
and papers
Increasing number of single family rather than joint family
Assurance of quality as most of the time the purchasers are not aware of
the details about construction.(Dewri, 2012)
12 | P a g e

2.2.2 Current Scenario of Real Estate Industry

The real estate market has flourished in Bangladesh in last decade. The boom in
this market came in the early 2000s, when people started to move to Dhaka with
a great number. According to Bangladesh Bureau of Statistics, currently 29% of
the population lives in urban area and the number will be 35% by the end of 2020.
In number, that is almost 75 million people and most of these people will try to
relocate themselves in Dhaka which will eventually increase the problem of
residence scarcity. The rate of urbanization in Dhaka is 5%-6% per annum. If the
population and urbanization grows at this rate, in next 20 years people will need 4
million new houses to accommodate themselves in Dhaka city. Currently annual
demand for new household varies from 0.3 million to 0.55 million, which is
600,000 to 800,000 units (BBS, 2011).
Currently Real Estate industry is one of those few growing industry which not
only has the great potentiality but also has a greater return over the year.
According to REHAB the existing companies has provided over 1000000
apartments in last decades. Particularly in Dhaka this demand is estimated to be
60,000 units of real estate apartments combined with 200,000 units of replacement
plus backlogs. The demand trend of apartments in Dhaka city can be realized in
following graph:

Fig: Number of apartments developed by years.

13 | P a g e

Thus there exists a high demand of plot and flat units. This huge and unfulfilled
demand is highly attractive for the investors. The Real Estate and Housing
Association of Bangladesh (REHAB) is the sole organization of the real estate
agents, developers and builders. It had more than 450 members registered in 2009.
Moreover, around 350 non-registered real estate developers are doing business in
this sector. According to REHAB they are currently supplying only around 8,000
to 10,000 units of housing apartments. (Dewari, 2012)
2.2.3 Real estate industry in Dhaka city and Surroundings areas
Real estate market in Dhaka
Dhaka represents a composite urban form developed through ages. The pattern of
aerial expansion and the urban form of Dhaka have been dominated largely by the
physical configuration of the landscape in and around the city. The city has been
spontaneously developed without any rigid planning proposal. The growing city
seems to have exhibited a series of informal and organic spatial patterns. Within
this framework, some parts of the city have been deliberately planned as
residential areas to provide the citizen with civic facilities. In such planned
schemes, land is subdivided into plot and infrastructure is constructed following
conscious design by the authority in which land use is defined according to the
master plan. In contrast, major part of the city has been developed organically in
which land is subdivided through private initiative, roads are laid to serve their
need without any approved plan. In process of time, these spontaneously
developed organic areas start operating as part of the whole city with continuous
adjustments. On the other hand, the planned areas, in spite of several controls,
have undergone
Morphological changes in land use pattern to adapt to the community need with
the passage of time. Further, due to the weakness in planning rules and zoning
policy, non-residential functions invaded into the planned residential area to meet
the demand of the growing population. Authority sometimes amended the rules to
accommodate such changes, which in turn affected the character of the planned
residential areas. As a result, the planned residential areas have changed into a
mixed land use pattern and transformed into an unplanned state in relation to their
14 | P a g e

physical layout (Khan 2008). Due to various factors, including absence of an

urbanization policy or a human settlement policy, urban growth and urban
development in Bangladesh is basically Dhaka oriented. (Dewari, 2012)
Real Estate in Narayangonj
In the east part of the city all the areas got huge pace of urbanization in the last
couples of years and lots of real estate firms are working there to meet the rising
demand for houses in the areas like Demra, Jatrabari etc. The focus of the real
estate firms is no more limited in these areas; rather they are already inside of the
border districts like Narayanganj. Though in Munshiganj they started newly, the
town areas of Narayanganaj is almost like another region of Dhaka with lots of
real estate activities. This happened once again due to the rapid urbanizations and
developments of communication systems in between the districts. Narayanganj is
only 30-40 minutes away by bus or 20-25 minutes away by train. Therefore
jobholders come to Dhaka in the morning and get back home in the evening very
easily.
Narayanganj was started developing as industrial belt of the city as well as the
residential area. But eventually it became the industrial area, which has driven the
residential development into a corner. So as a result Narayanganj became a
industrial area of the city, which created more scarcity for residence of population.
This scarcity in turn initiated the need for a new area to be developed as
residential area.
Real Estate in Gazipur
Narayanganj is the first industrial belt which is fairly close to Dhaka. But due to
massive industrialization later there were not any free space for residential area.
So the next feasible area was Gazipur, which is also close and enough space for
both industries and residential area. In time when the people realize that
narayanganj is full, some of the industries were starting operation in Gazipur. The
major leap forward for this city took place in last 10 years, as it presented itself as
the next industrial area of Bangladesh. In the last 10 years, a lot of factories
located themselves in Gazipur belt. These factories includes garments factory,
Spinning mills, different manufacturing factory like fu-wang foods, kollol group,
15 | P a g e

Nestle Bangladesh Limited, Square group etc. After Narayanganj, Gazipur is the
closest area of Dhaka which has the infrastructure, available land and opportunity
to be industrialized. As the number of industries is increasing in Gazipur day to
day, more and more people are looking for housing facilities in this area. Some of
them are looking permanent residence and some are looking for temporary. In
either case, peoples need for housing facilities is getting greater each day which
in turn generating rapid growth for real estate in this city. If we look back in the
history of this city, before 1947 most of the land of this city was owned by Hindu
religion followers, even the lord of the area was a Hindu follower. But after the
separation in 1947, a lot of these people flee from the country in different areas
mostly in India. The Muslims from the local residence and also in some cases
Muslims from adjacent areas like Mymenshing, took the chance and forcefully
seized these lands. And later in 1953, when the local govt. conducted the
nationwide survey, they put their name as the owner of that land. Same thing
happen after the liberation war in 1971, during the survey in 1972. So we can say
that historically people around this city had a lot of land at their disposal. For two
generations, these land owners did not wanted to sell their lands as most of them
were farmers. But the third generation was different from their ancestors, they did
not become farmers and also not very educated of business minded, so the main
income source was selling lands, which takes us to the beginning of twenty fast
centuries. As the previous generations did not relied on the lands, compared to
other area land ownership was not changed in this city that much. Thats why the
price was still very low around this part of the country. Two things took place
around the same time, other suitable areas for industry around Dhaka were almost
full and the third generation started to sell their lands at a very low price. Because
of the cheap land price in this area which is situated so close to Dhaka, it attracted
different types of buyers to Gazipur. These buyers includes industrialists looking
for land to start new factory, cream class of the society who want to own a second
home away from the city, people who have ideal money etc. Now the industries
are already flourishing in the area, which generating peoples residential need
around this area. Also as the residential facility in Dhaka is getting expensive and
Gazipur is fairly close to Dhaka with very good communication system with the
capital, more and more people trying to locate them in gazipur. Yet major
developer companies of the country are not active in the local real estate market.
16 | P a g e

There are five real estate companies who are the only major player of the area.
Gazipur Upa-shar Limited and Gazipur Properties limited is the main two player
of the market. Gazipur Upa-shar Limited is the sole company who deals with both
lands and Apartments. Other than this company there are some other organization
who are in real estate business and deals with land but they are not registered yet.
The industry is mainly spreading in the outskirts of the main city area. Islampur,
Rajabari, Monipur, Kaliakoyer are the most demanding areas. (Uddin, 2014)

2.3 Customers Profile of Real Estate Market

Previously the major customers of real estate industry were the top class citizen of
the country, but the recent government initiative of providing the residential
facility to middle class people, banks loaning facility and different companys
installment option has provided the opportunity to buy residential apartments and
lands for middle class people as well. We can segment the main customer
segments based on some factors like education, income level, social status, current
residence, age etc. customers requirements about a apartments differs depending
these factors.

Income level: Bangladesh government has taken initiative to make

available apartments for middle class people. But still there is clear line
about which income level customers prefer which type of apartments. Like
high income level people who make more than 1.5lac a month and also has
some assets on their own generally prefer apartments between 1800sqft2200sqft apartments. On the other hand people have income level between
1 lac to 1.5 lac looks for 1200sqft- 1800sqft apartments. But people in the
lower income level than this normally look for a apartments with enough
space to accommodate his/her whole family. Still age is very crucial
factor, which can change the income level perception about apartment
requirements.

Age: The average life expectancy in Bangladesh is 65. 01 year (BBS 2007)
while the expectancy is 64.5 & 65.7 for male & female respectively.
Among the total population 32.9% falls in below 14 years age group,
63.6% falls in 14-64 years age group, and 3.5% falls in the 65 years and

17 | P a g e

over age group (BBS, 2007).The main targeted customers are between 2564 years age group which is a little lower that 63.6% of total population of
Bangladesh. Also in some cases we can see that senior citizen who is in
the 65 years and above age group are customers of real estate. Primarily
customers in age group of 25-35 look for apartments between 750sqft1000sqft, as they have small family with two-three family members. The
next age group who are 35-60 years old, look for the largest apartments
because of the growing family members. But people who are aged more
than 60 years old also look for small apartments as by than most of the
children are away home or in their own resident so the old couple doesnt
need very big apartments. This requirement of apartments based on age
can be different if the customers are from different social class.
(Wikipedia, 2014)

Social Class: Generally the cream class of the society was the sole
customer of real estate market but we stated before currently the middle
class has also became customer of the industry. Due to belonging in
different social class, the needs of customers are highly influenced by their
social class. Like the customers from the high society class who are
between 25-30 years of age looks for condo or studio apartments. On the
other hand people who are member of middle class though being in the
second age group (35-60 years) search for small apartments as they cannot
afford bigger apartments. In recent times customers who are in both high
class and third age group (60 and above) buys adjacent apartments for
them and their children.

Current residence: Current residence plays a vital role in deciding the

type of apartments or residence. People who live in the city in their own
house require a second home to use as garden house away from the city.
But people from rural area looks for an apartment in the city despite of the
size of the apartment. That is one of the main reasons why developers tries
to build single stories or double storied building with larger area with the
building outside the city and congested apartments in the city.

18 | P a g e

Other than these factors there are some other factors which influence customers
requirements about their resident like family cycle, profession etc. The most
mentionable is family life cycle. Like customers in full nest stage requires larger
apartments than young couple and empty nest.

2.4 Market Segmentation:

Real estate market in Dhaka has flourished all over the town. But still there are
some variations between locations. These variations are mainly in price and size
of flats. We can segment the market of Dhaka based on these criteria and
locations.
1. Gulshan, Banani, Baridhara: These three are the most pose area of
Dhaka. Flat size in these areas is more than 2000sqft. which is higher than
any other area ofDhaka. Also the price range of these areas is higher than
other areas. In banana price per sqft flat range from BDT 15,000- BDT
20,000. In Gulshan it is from BDT 20,000 to BDT 30,000. Price of flats in
Baridhara is close to Gulshan. If we consider companies, non-branded
companies sell their flat in BDT15,000- BDT 16,000 per sqft. but branded
companies like BIT, Assurance, Concord, Domino sell their flat in upper
range. Land contracts are mainly in favor of land owners which is 60-40
percent. 60% of the flats go to land owners and 40% goes to Developers.
Also the signing amounts in these areas are higher than other areas. Thats
why flats in these areas are larger in size to cover up the cost of
constructions and signing amount. Flats in Banani and Mohakhali DOHS
are sold even at higher price which is more than 25,000 per sqft. As these
areas are very well planned and all public facilities are available properly
in these regions.(Dhakaflats, 2014)

2. Dhanmmondi, Kalabagan, Uttara, Mohammadpur: Flat price in these

areas has huge variations. In Dhanmmondi and Kalabagan price is BDT
15,000 to BDT 20,000. In Mohammadpur it is BDT 7,000 to BDT 8,000.
In Uttara price range from BDT 8,000 to BDT 10,000. The main reason of
this variation is because of location of the land. In the main part of
19 | P a g e

Dhanmmondi, Kalabagan and Mohammadpur flats are sold at higher price.

But at the boundary of these areas flats are relatively cheap. Average ftat
sizes in these areas are 1250sqft. -1750sqft. In the main part of the areas
land contracts are in 60-40 but in the outskirts it is 50-50. Same thing for
Uttara the sectors (3,7,6,4,1 etc.) which are close to highway is higher
priced. But sectors which are in backward place like 15, 14, 11 etc. are
relatively cheap. (Dhakaflats, 2014)

3. Malibag, Mogbazar, Badda, Kakrail: Mogbazar and Malibag are central

area of Dhaka. Still flat price in these areas are lower compare to
otheradjacent areas. Flat price in these areas are range from BDT 10,000 to
BDT 15,000. The reason behind this low price is unplanned development.
These areas have very poor public and utility service. Also communication
of this part of the city is very difficult and time consuming. Flat price in
Badda is around BDT 6,000 in average. (Dhakaflats, 2014)

4. Mirpur: Mirpur is one of the old parts of Dhaka city. Butthese area was
never properly developed. Most of the time land contract around this part
goes for 60-40 percent in developers favor. Sometime it is 50-50. Price
range is BDT 4,000 to BDT 5,000. Flat price in Mirpur DOHS is a little bit
higher which BDT 5,000 to BDT 7,000 is. But still it is very low against
other DOHS. Mainly because this it is new, not yet developed. It also
shares the same problem with Mirpur main part which is bad
communication. Another factor is it doesnt share the same image of high
class as other DOHS have. (Dhakaflats, 2014)
Other than these areas we have Old part of the town, Gazipur, Savar, Ashulia etc.
developers are not that much interested to go in the old part. As the lands are very
congested and narrow roads. Moreover with time, people are moving towards the
new part of the town. In Gazipur flat price is BDT 3,500 to BDT 4,500. But till
now only two companies have successfully handed over the flats. Still the market
is growing, but popular developers have not shown themselves in this market yet.
(Uddin, 2014)

20 | P a g e

2.5Decision making process of Real Estate

It is vital for a company to know about buyers decision making process, because
they have to know at which point they have to or they can influence the decision
making for a successful marketing plan. As most of the buyer does not well aware
about the technical know-how of construction of building so it is very important
for a company get buyers mind share. To get the mind share the companies has to
properly communicate the projects and its facilities properly so that the
communication can reach they buyer accordingly.Knowing the buyers decision
making process will give a company some competitive advantage as they will
know the best point of penetration in the buyers mind.
As we know buying decision making process is simple five steps. It starts with
identifying the problem then gathering information, alternatives evaluation,
making purchased decision and finally post purchase behavior. But with the time
the buying decision making process has been adjusted with different industry
according to that industrys characteristics. So if we take the real estate industry
buying decision making process can be stripped down to seven steps. These steps
are1. Defining the problem
2. Developing criteria
3. Available alternatives
4. Evaluation of alternatives
5. Selecting the final one
6. Implementation
7. Post

21 | P a g e

Purchase

Behavior

1. Defining the problem: First step is pretty simple, they define their problem. In
this stage buyer try to find answer to some of their questions like what is missing,
what they want, why they want it etc. Actually firstly they just shape up their
thinking with specific objectives. Then they finally come to the point when they
know what they want. They need a place for their residence. It could be rented
house, own house, land or flat. After some further evaluation they determine
whether they want to buy or just rent depending their financial condition, social
class etc. only those people who decide to buy their own residence are the target
customer segment of the real estate industry. If they want to buy their residence
they left out with only three options, they could buy a house with the land or they
can buy a land and build the house on it and lastly they could just buy a flat. Soto
fulfill their demand for a house can be met with any of these here optionsA. Buy house: in this option a buyer purchase a house with the land. Seller could
be both an owner of the house or a realtor. In Bangladesh, generally these
kinds of deals are done by the house owner as we dont have that much
professional realtor in the industry. It has some positive sides, as the buyer
purchase a ready house, they can start to live right away with a little repairing
in some cases. They dont have to go through the hassle of building a house
which involves getting permission and design approval from City Corporation,
managing work force ( engineers, architects, raw materials suppliers, daily
workers etc.also if they owner does not have any prior experience on
construction, it is impossible to ensure the quality. Then again it has a major
drawback. Buying a house doesnt provide flexible financial options.
Normally its one-time payment or at highest a two installment payment. A
house is very expensive comparing land or flat.
B. Buy Plot: There are some companies who sell land. These companies
normally buy low lands or small amount of at a time from a specific location.
Then divide the whole area in to well-designed plots and sell them. Though
this option provided less expense, building house can be monitored by the
owner himself. But hey has to go through the hassle of managing and
monitoring the workforce to ensure desired quality. It also provides financial
support better that previous option. Some real estate firms develop lands and
sell those developed lands to the buyers.

22 | P a g e

C. Buy Apartment/Flat: Flat as widely said in Bangladesh rather than apartment

is the most common solution to the buyers of real estate products due to
different reasons. First buyers get the flexibilities in financing as they can pay
the money by installments. Sometimes real estate firms help the buyers to get
access to the financing services available. Again as money is paid according to
the predefined schedules, one can plan long term which is helpful to
accommodate any changes .Secondly here one gets ready house to live in. So
one does not need to handle with the complexities with the stakeholders.
Thirdly buyers have voice over the construction of houses. Buyers can specify
what they want in their houses and real estate firms make the adjustments
according to the preferences of buyers. But buyers might have to pay in case
they want something extra or something that was not specified in the initial
contract.

2. Developing alternatives
Now they have decided to buy a flat/apartment. Now they look for options. They
have decided the preferred location and size of the flat. Buyers use different
criteria they think relevant either consciously or unconsciously to evaluate the
alternatives. They gather information about the active companies. Information can
be gathered from different sources like friends & family, newspaper, advertising,
word of mouth etc. buyers compare between companies based on these
information. They form up some criteria to evaluate these options like price,
location, good will, previous projects of the company, quality of construction,
utilities service communication facilities, surrounding areas, availability of public
services, financing options etc. For high class society a flat is kind of a symbol of
their social class, so exterior and interior design is a very considerable part for
them. Emotion is one of the major factors to consider here. By culture
Bangladeshis are emotional and emotion is pretty much attached to the real estate
purchase decision too. Buyers treat this kind of buying as a long term issue and
they normally perceive that they do it for their next generations. Lastly they rank
their preference of about these factors based on their importance to them.

23 | P a g e

3. Evaluating alternatives
Buyers have all the relevant information by this time. Now they judge the
alternatives against the criteria set they did develop earlier. Sometimes buyers
put weights on the individual criteria to ensure the proper role of criteria in the
decision making process without violating the preference of the buyers. In most
cases assignment of weights is unconscious or informal in Bangladesh. Buyers
just know and keep in mind what they want to have and how much they are ready
to adjust in respect to different criteria. Experts mark this aspect normal in
Bangladesh and they say its not that complicated. In their opinions buyers put
most of their emphasis on costs and therefore they dont bother as long as they are
convinced that quality/standard well represent the costs.
So costs benefits analysis comes to the scenario. But in Bangladesh its not
common except the commercial real estate products. In case of residential real
estate products, buyers buy them not with the intention of making profits from
them. Rather they buy them in order to live and emotion is pretty much attached to
it. So they dont go for the cost benefit analysis normally. But buyers are careful
to be sure that the property deserves the particular amount of investment
considering the properties of it and the market condition.

4.

Purchase Decision

In this stage buyers pick up the one they think goes best with their intention. In the
previous stage buyers get a scorecard that represents the worthiness of the possible
alternatives to satisfy a particular need. Based on that scorecard buyers select the
one with the wish to implement. As a general rule, buyers select the one that
produce the highest score. But reality becomes different when buyers add the
qualitative judgment with the quantitative scorecard. Like the previous steps
emotion once again plays a vital role here.

5.

Post Purchase Behavior

Buyers are almost done in the process of buying house. They have already decided
about category and alternative they do want. So they contact the supplier and

24 | P a g e

make the contracts that explain among others total amount to pay, the payment
schedules, attributes of the houses, delivery date, quality aspects etc.
One has to be very much careful when one make contracts to be safe from any
kind of frauds that might arise later on. It has been claimed that frauds in the
Bangladesh market has been rising in the last couple of years.
After the delivery of the houses one gets the chance to compare the promised
features with the delivered features. Any discrepancies can be settled by proper
communication with the real estate firms.

25 | P a g e

METHODOLOGY
3.1 Research Design
The suitable type of research design for this study is Ex Post Facto design
(Psychwiki, 2010) where the subtype used is used to accomplish the research
objectives. The fundamental objective of survey design is to search for
relationship between variables. It generally depends upon the application of a
well-constructed questionnaire, which is applied in collection of data from the
pertinent unit of analysis under study, generally, an individual. This research is a
Descriptive one along with some characteristics of Normative Research. The
report mainly focuses on the development of the real estate market in Bangladesh
while it also talks about the current market functions and the effects of the real
estate business in Dhaka, Gazipur and Narayangonj of Bangladesh. Also it depicts
the possibilities about the times to come.

3.2 Sources of Data

Both Primary and Secondary data have been used for preparing the report.

Primary Data: Primary data comes from interviewing people through

questionnaire and the informal interviews with the real estate professionals
and experts in Bangladesh. Also personal observation, living, and
discussion with the professionals are other main sources of primary data.

Secondary Data: Secondary data is collected from different published

sources like research reports, Bangladesh Bureau of Statistics, real estate
publications and different literatures on real estate business etc.

3.3 Sample Selection

The non-probability sampling was used and the sampling method used is
convenience sampling. Convenience sampling is the most familiar form of
sampling design in social science research and provides researchers with an
acceptable database to use statistical inference techniques. This approach to
sampling involves collecting information from members of the population who are
conveniently available to provide this information (Sekaran, 1992). In this survey,

26 | P a g e

non-probabilistic sampling method was used because the complete sampling

frame for the target population was not available that is necessary to conduct the
usual probabilistic sampling techniques. Besides, limited time and budget also
guided the researchers to go for non-probabilistic methods. The main focus in
selecting sample was on people who have a monthly income between BDT 50,000
to BDT 1,50,000. As people with a monthly income below BDT 50,000 are not
the focused customers of real estate industry.
Moreover,

the

sample

size

was

large

enough,

i.e.

300,

to

ensure

representativeness.
Sampling Frame: Several sampling frames based on profession and income level
were used.
Basis

Sample frame

Professions (Govt./ Business / Doctor,

Engineer,

Banker,

Businessman,

Private)

Lawyer, Service holder, and Others

Income Level (Tk./ Month)

50,000 or below;50,000-1,00,000;1,00,0001,50,000;1,50,000-2,00,000;2,00,000 or above

Sampling Element: Individual households from existing and potential clients

Sampling Unit: Individuals from existing and potential clients
Sample Size: 300, which is sufficiently large for this sort of surveys
Channel Of Approach: Both physical survey and telephone methods

3.4 Data Collection

The main instrument for data collection was the questionnaire. Formal
questionnaire (added in the appendix) is used to collect data from the consumers
through face to face interview with a simple random sampling. In case of experts
and real estate employees the medium is informal interview.

3.5 Data Analysis

Data is mainly analyzed from customers perspective. These analyzed data will be
disseminated among the related parties i.e. real estate firms, real estate
economists, universities etc., to have a knowledge spillovers affect. Quantitative
27 | P a g e

analysis was done using statistical and mathematical tools such as Statistical
Package for Social Science (SPSS) and MS Excel. Useful and reliable models
such as Univarate Analysis, Bivariate Analysis; Multivariate techniques were
developed to analyze the data. The data were mainly analyzed by using cross
tabulation, correlations, and mean of the variables. All the variables were
measured using five point Likert Scale with level 1= Strongly Disagree,
2=Disagree, 3=Neutral, 4=Agree and 5=Strongly Agree. Data have been analyzed
using Correlation, Cross tabulation as well as Descriptive Statistical Techniques.

28 | P a g e

ANALYSIS & FINDINGS

4.1 Demographic Analysis

4.1.1 Demographic Analysis based on location:

Location

Gulshan
Uttara
Malibag
Mirpur
Old town
Gazipur

Figure: Demographic analysis of Location.

Here from this pie chart it can be deduced that 30% respondents are from
Malibagh-Mogbazar, 22% live in Mirpur and 18% are from Uttara. Only 4%
people are from the old town or Puran Dhaka.

29 | P a g e

4.1.2 Demographic Analysis based on Age of participant:

Age
20%

8%
28%

25 - 34
35 - 44
45 - 54

44%

55 and above

Figure: Demographic analysis based on Age

Here the pie chart shows that most of the respondents (44%) are aged between 45
and 54. Also a big portion which is 28% people is 35 to 44 years. 25-34 range has
the least portion of respondents.

30 | P a g e

4.1.3. Demographic analysis Based on Occupation:

Occupation
6%
44%

34%

Business
Government Service
Private Sector
16%

Others

Figure: Analysis based on Occupation

Business people are the highest portion of people who participated in the research (44%).
Also 34% people are related with Private service and 16% are engaged in Government
Service.

31 | P a g e

4.1.4 Demographic Analysis Based on Salary of Participant

Salary of the participant

8%

6%

14%

24%

Below 50,000
50,000-1,00,000
1,00,000-1,50,000
1,50,000-2,00,000

48%

Above 2,00,000

Figure: Demographic Analysis Based on Salary of Participant

Here the highest 48% peoples income range between 1,00,000-1,50,000. Also
24% has the income of 50,000-1,00,000.

4.2 Statistical Analysis:

Cross-tabulation is one of the most useful analytical tools and is a main-stay of the market research
industry. One estimate is that single variable frequency analysis and cross-tabulation analysis
account for more than 90% of all research analyses. (Qualtrics, 2013)
Cross-tabulation analysis, also known as contingency table analysis, is most often used to analyze
categorical (nominal measurement scale) data. A cross-tabulation is a two (or more) dimensional
table that records the number (frequency) of respondents that have the specific characteristics
described in the cells of the table. Cross-tabulation tables provide a wealth of information about
the relationship between the variables.

32 | P a g e

4.2.1 Cross-tabulation Analysis of Age with Flat Size:

Figure: Age and Flat Size Cross Tabulation

Here from this cross tabulation it can be identified that 25-34 age range are mostly
preferring the flat size which are below than 1000 sq. ft. But the participants from
35-44 age range are mostly going for larger apartments than the 25-34 range. They
choose bigger apartments which are like 1200-1500 sq. ft. 60 respondents from
45-54 age groups prefer larger apartments which are 1500-1800 sq. ft.; also 24
respondents are choosing even bigger, 1800-2000 sq. ft. Big portion of the 55Abobe age group possess apartments which are 1800-2000 sq. ft.

33 | P a g e

4.2.2 Cross-tabulation Analysis of Occupation with Preference of Flat and

Land:

Figure: Occupation and Preference of Land/Flat Cross-tabulation

Cross-tabulation Analysis of Occupation with Preference of Flat and Land shows

that most business people want to possess land over Flat or Apartment. But
Respondents who are engaged with government service has a steady limited
income so most of them (48 respondents) own Flat or Apartments. 78 respondents
who are doing private service have their own apartment whether 24 of them own
their own property.

34 | P a g e

4.2.3 Cross-tabulation Analysis of Occupation with Financing Option:

Figure: Occupation Financing Option Cross-tabulation

For financing, big portion of the Business people (72 respondents) prefer loan for
5 year with moderate interest and medium installments. The majority of
Government service holder people (30 respondents) also prefer this option, but 18
of them choose 15-20 year with high interest and low installments. On the other
hand the Private Service people mostly go with the business people in option of 5
year with moderate interest and medium installments.

4.2.4 Frequency analysis of Governing Factor:

From the table below, it can be easily inferred that people consider price and
scarcity of living space as the main governing factor of real estate market. 30%
respondents selected price and 28% selected scarcity of living space as the main
governing factor. In the next position are both energy crisis and Quality of work.
In their opinion Honesty of the firm is the least important governing factor for the
real estate market.

35 | P a g e

Cumulative
Frequency Percent
Valid

Government Regulation 18

Valid Percent Percent

6.0

6.0

6.0

48

16.0

16.0

22.0

Price

90

30.0

30.0

52.0

Quality of work

48

16.0

16.0

68.0

Honesty of the firms

12

4.0

4.0

72.0

Scarcity of living space 84

28.0

28.0

100.0

Total

100.0

100.0

Energy
Availability/crisis

300

Table: Frequency Analysis of Governing Factor

4.2.5 Frequency analysis of Preferable Location:

Valid

Cumulative

Frequency Percent

Percent

Percent

36

12.0

12.0

12.0

150

50.0

50.0

62.0

84

28.0

28.0

90.0

Mirpur

24

8.0

8.0

98.0

Tongi, Gazipur

2.0

2.0

100.0

Total

300

100.0

100.0

Valid Baridhara,

Gulshan,

Banani
DOHS,

Uttara,

Dhanmondi
Malibagh,

Kalabagan,

Kakrail

Table: Frequency Analysis of Preferable Location

36 | P a g e

The most popular location among the respondents is DOHS-Uttara-Dhanmondi.

50% respondents want to buy their property in these places. After that, 28%
people choose Malibagh-Kalabagan-Kakrail areas. The least only 2% are selecting
Tongi-Gazipur.

4.2.6 Mean Calculation of Purchase Factors:

Overall quality

Mean

Std. Deviation

Unimportant

3.00

30

1.287

Normal

2.38

96

.700

Important

1.93

90

1.188

Very Important

1.57

84

1.185

Total

2.08

300

1.148

Table: Mean of Overall Quality

Luxury

Mean

Std. Deviation

Very Unimportant

2.57

42

.501

Unimportant

2.55

66

.502

Normal

2.50

72

1.199

Important

2.00

48

1.750

Very Important

1.00

72

.000

Total

2.08

300

1.148

Table: Mean of Luxury

37 | P a g e

Space

Mean

Std. Deviation

Unimportant

3.29

42

.708

Normal

2.33

108

1.160

Important

1.50

96

.871

Very Important

1.67

54

.952

Total

2.08

300

1.148

Table: Mean of Space

Location

Mean

Std. Deviation

Unimportant

2.80

30

1.186

Normal

2.37

114

1.041

Important

1.83

138

1.133

Very Important

1.00

18

.000

Total

2.08

300

1.148

Table: Mean of Location

Company

Mean

Std. Deviation

Unimportant

2.64

66

.485

Normal

2.44

108

1.390

Important

1.59

102

.916

Very Important

1.00

24

.000

Total

2.08

300

1.148

Table: Mean of Company

38 | P a g e

Ease

of

financing

like

installment payment

Mean

Std. Deviation

Very Unimportant

1.00

42

.000

Unimportant

1.27

66

.621

Normal

2.50

108

1.264

Important

3.00

60

.781

Very Important

2.00

24

.000

Total

2.08

300

1.148

Table: Mean of Installment Payment

Facilities

of

the

property

Mean

Std. Deviation

Normal

3.00

30

.000

Important

1.96

168

1.326

Very Important

2.00

102

.844

Total

2.08

300

1.148

Table: Mean of Facilities of Property

Exterior design

Mean

Std. Deviation

Unimportant

2.67

36

.756

Normal

1.80

120

.751

Important

2.47

114

1.434

Very Important

1.00

30

.000

Total

2.08

300

1.148

Table: Mean of Exterior Design

39 | P a g e

Interior design

Mean

Std. Deviation

Unimportant

2.83

36

.378

Normal

2.53

90

1.416

Important

1.60

120

.864

Very Important

1.89

54

1.003

Total

2.08

300

1.148

Table: Mean of Interior Design

From the above tables, we can see the importance of these factors for purchasers
in buying decision making process. The factors we are considering are as below1. Overall quality
2. Luxury of the flat
3. Space of the flat
4. Location of the Flat
5. Brand value of the company
6. Ease of financing options
7. Utility facilities and other services (Parking, Guard, Lift etc.)
8. Exterior design of the building
9. Interior design of the building.
According to the 300 respondents, they are mostly indifferent about the Space of
the flat, Brand value of the company, Ease of financing, exterior design. But
between these factors, exterior design and Companys brand value are more
important to them as there are 108 people for companys brand value and 114
people for exterior design think these are important. But if we when we compare
exterior designs importance with interior designs importance we can see than to
them interior design is more important than exterior design. 120 respondents think
Interior design in important but only 90 are indifferent about it. For the
respondents overall facility of a flat is very important to them. The figure shows
that 168 respondents think it as important and 102 respondents consider it as very
important. Quality, space, brand value of the company and Exterior design are
skewed from normal towards importance. But ease of financing is skewed from
40 | P a g e

normal towards unimportant. In case of Luxury responses are skewed almost

evenly toward both sides. 72 people think it as very important at the same time
another 72 thinks it as normal and 66 thinks it as unimportant.
With the responses taken from the respondents, their preference can be analysis
against occupation. The study shows peoples preference can be different based on
their occupation. Analysis shows that business people put more importance in
overall quality and luxury of the flat than government service holder or private
service holders. According to them overall quality is neither important nor
unimportant. Business people think sufficient space in the flat in very important
but according to service holders it is unimportant. Everybody wants better location
for their flat. Most of them are indifferent about the location but some of them
want to be in high class society. The only factor the business people think is
unimportant is ease of financing. But for other profession it is very important that
they can pay for their apartments easily and at a very low interest rate. In case of
utility facility, exterior design and interior design business people put high
importance but people from other profession put positively skewed importance.
Some thinks it is important, some think it is average.

4.2.7 Frequency Analysis of Important Factors duringSite Visit:

Cumulative

Valid

Frequency

Percent

Valid Percent

Percent

126

42.0

42.0

42.0

Expertise of the construction crew 60

20.0

20.0

62.0

Suitability of the land

18

6.0

6.0

68.0

Compliance with regulations

72

24.0

24.0

92.0

Design of the building

24

8.0

8.0

100.0

Total

300

100.0

100.0

Quality of the material used

Table: Frequency Analysis of important factors during site visit

From this table it can be deduced that the majority portion which is 42% are
concerned about the quality of material used to build the buildings. Also 24% of
the respondents are looking for compliance with regulations. Also 20% of people
are meticulous about the expertise of the construction crew.
41 | P a g e

4.2.8 Correlation of Satisfaction Factors:

Here is the correlation table of Overall Quality with other satisfaction factors. The
detailed table has been added to Appendix sector.

Particulars

Correlation

with

Overall Rank

Quality
Luxury

.416

Space

.317

Location

.103

Company

.376

Ease of Finance

-.395

Facilities of the property

-.237

Exterior Design

.063

Interior Design

.196

Table: Correlation table

The Pearson Correlation value ranges from -1 to +1 with negative numbers

representing a negative correlation (as one variable increases, the other variable
decreases) and positive correlation (as one variable increases, the other also
increases). The closer the value is to -1 or +1, the stronger the association is
between the variables.
It can be seen from the table that luxury, space, location, company, exterior and
interior design are positively correlated with overall Quality. Ease of finance and
facilities of the property are negatively correlated with overall quality. The
importance and impact of these factors have shown in rank column of the table.

42 | P a g e

4.2.9 Correlation of Satisfaction Factors with real estate company

performance:
Particulars

Correlation with all satisfaction Rank

Factors

Honesty

about

Size, .624

facilities etc.
Proper hand over due date
Promised

.597

Construction .442

quality
Relative

pricing

against .399

Financing Options

.651

Proper utility services

.407

& .300

competitors

Design

(Interior

Exterior)
Figure: Correlation of satisfaction factors
From the table we can see that all the feedback against the Real Estate Company
and satisfaction factors have positive correlation. It can be interpreted as the Real
Estate Companies of Bangladesh are fulfilling all requirements that the consumers
believe are important.

43 | P a g e

4.3 Findings:

From the analysis, some major findings were noticed. The findings are People in the age group 35-54 prefer 1200-1800 square feet flat. But he
main customers of flat size more than 1800 square feet flat are people who
are older than 55 years of age.
Mostly business man prefers land over flat rest of the people like to buy
flats.
More or less people from all profession choose 5 years financing option
with medium interest and medium installment.
People think price and scarcity of living space are the main governing
factors of real estate industry.
Almost 50% of the respondents wanted to relocate themselves in DOHS,
Uttara, Dhanmondi. The second preferable locations are Malibagh,
Kalabagan, Kakrail.
Customers prefer Better Interior and exterior design, space of the flat, Ease
of financing over raw material quality, location of the flat.
During construction site visit customers try to ensure the raw material
quality and compliance with the regulations.
Correlation of the satisfaction factors shows that people are satisfied with
companys honesty, financing options.
Business people prefer better quality and luxury of the flat whereas service
holders want better financing options and utility facilities.

44 | P a g e

CONCLUSION
In general if we look at the real estate market, it is very visible that the customers
are not that much satisfied with what they are getting. In some cases they are not
even getting what they want. But this research portrays a different picture.
Customers think that the pricing and scarcity of living space are the main
governing factor of the real estate industry of Bangladesh. It was thought that
customers will be more concern about the material quality, flats space, location
and easy financing options. But the study identifies that the customers are more
concern about interior and exterior design and brand value of the company than
any of those. According to their feedback they would like to relocate themselves
in Uttara, Dhanmmonndi, Malibag. In case of their location preference, they have
mixed opinion. Most of the respondents want to be in Uttara as because it is
within Dhaka, have all the facilities and much more organized. In their opinion
Uttara is within Dhaka but without the problems of Dhaka. Some of them want to
live in Dhanmmondi and DOHS (Mohakhali & Baridhara) just because of the high
status of these areas. People try not to be in Mirpur area. When the respondents
are asked whether they are happy with their developers or not, they say they are
not fully satisfied. According to them their developers are not fully honest about
their apartments and its facilities. But when their responses were taken about their
satisfaction level, their responses depict another view. Their responses say they
are satisfied with their developers. According to the respondents luxury,
companys brand value and space are very much related with overall quality of the
flat or apartment. But Ease of financing and utilities facility has comparatively
lower correlation with overall quality. Customers are very satisfied with their
entitled financing options. Also they think companys honest about flat space and
other facilities and handover the flats in due time. But to them pricing of flats is
very poor as well as the exterior and interior design. During the construction of a
apartment building, they consider raw material quality, construction crews
expertise and compliance with government regulation as important factors. There
is still some scope for further study. This study was mostly to determine
customers attitude based on their profession. People attitude and expectation
about the real estate offering and companies can also be measured based on their
origin, social status, income level, family size (number of family members) etc.
Each of these factors can provide the companies even more inside in the
customers expectation about their real estate offerings. But it is suggested that the
further research should have more diversified sampling frame in case of
demography.
45 | P a g e

REFERENCES
Sekaran, U. (1992) Research Method of Business. New York: John Wiley and
Sons. pp. 87-92
Psychwiki.com (2010) What is ex post facto design? [Online] Available From:
http://www.psychwiki.com/wiki/What_is_ex_post_facto_design%3F
[Accessed on 12 January 2014] .
Dewri, L. V. (2012) A Comprehensive Study on the Real Estate Sector of
Bangladesh [handout] Real Estate and Housing Association of Bangladesh
(REHAB) pp. 25-32.
Uddin, M. F. (2014) Face to Face Interview on Real Estate Market of greater
Dhaka with A. Pervez, 28th January.
Qualtrics.com (2013) Cross Tabulation Analysis [Online] Available From:
http://qualtrics.com/wp-content/uploads/2013/05/Cross-TabulationTheory.pdf. [Accessed on 15th January 2014].
Wikipedia (2014) Demographics of Bangladesh [Online] Available From:
http://en.wikipedia.org/wiki/Demographics_of_Bangladesh [Accessed on
17th January 2014].
DhakaFlats.com (2014) Price range and flat size of Dhaka [Online] Available
From: http://dhakaflats.com. [Accessed on 10th January 2014].
Bangladesh. BANGLADESH BUREAU OF STATISTICS, STATISTICS AND
INFORMATICS DIVISION (2011) Population and Housing Census 2011
Bangladesh, pp. 19-23.

APPENDIX
Survey questionnaire for Exploring Factors Affect Customers
Buying Behavior and Satisfaction: A Study on Real Estate Firms
Operating in the Greater Dhaka Region
Dear Respondent:
Good day, I am requesting your kind co-operation to complete my thesis work. I
am doing as an academic activity. I am a student of Business administration
Discipline of Khulna University. I am doing thesis on the following topic:
Exploring Factors Affect Customers Buying Behavior and Satisfaction: A
Study on Real Estate Firms Operating in the Grater Dhaka Region
Please fill up or put a tick () mark appropriately for the following questions.
Thanks a lot in advance.
Part 1: Personal Information
1. Name:_________________________________________________________
2. Gender:
Male

Female

3. Current Address:
Baridhara, Gulshan, Banani
Kalabagan
Malibagh,Mogbazar , Kakrail
Old Town of the City
Tongi
, Gazipur
4. Age:

25-34

5. Marital Status:

35-44

Married

DOHS, Uttara, Dhanmondi

Mirpur
Savar, Ashulia

45-54

55 and above

Unmarried

Widowed

Divorced

6. Occupation:
Business
Government service
Private Service (RMG)
Teacher
Private Service (MNC)
Private Service (Others)
Other
Bank
Please state the nature of your occupation if it is not covered in above
description
___________________________________________________
7. Educational Background:
Masters
Bachelor (Hons.) Bachelor (Pass.)
H.S.C.
S.S.C

8. In which monthly income level you put yourself?

Below 50,000
50,000-1,00,000
1,50,000
1,50,000-2,00,000
Above 2,00,000

1,00,000-

Part 2: Knowledge of Real Estate

9. In your opinion, what is the current condition of Real Estate market in Dhaka?
Introductory
Growing
Declining
Stagnant
10. How many real estate firm currently operating in your area is known to you?
2-3
4-5
6-7
More than 7
11. What is the main governing factor in the real estate market?
Government Regulation
Energy Availability/crisis Price
Quality of work
Honesty of the firms
Scarcity of living space

Part 3: Purchase process & Decision

12. What are you looking to buy?
Land

Flat/Apartment

13. Where do you search for information regarding the flat/land purchase?
Friends/Relatives
Newspaper ads (General)
Newspaper ads (classified) Online sources
Professional Services Real Estate Agencies
14. What is your preferable location for a flat/apartment?
Baridhara, Gulshan, Banani
DOHS, Uttara, Dhanmondi
Malibagh, Kalabagan, Kakrail
Mirpur
Old Town of the City
Savar, Ashulia
Tongi
, Gazipur

15. What is your opinion about these factors importance in purchasing a

flat/apartment?
Factor
Very
Unimportant Indifferent
Unimportant
Overall quality
Luxury
Space
Location
Brand Value of the
company
Ease of financing
Facilities of the property
Exterior design
Interior design

Important

16. What size of flat is most preferable size for you to purchase?
Below 1000 sq. ft.
1000-1200 sq. ft.
1200-1500 sq.
ft.
1500-1800 sq. ft
1800-2000 sq. ft
above 2000
sq. ft.
17. Though which source you want to finance your purchase?
Real estate firm
Bank
Non-Banking financial org.
Self
18. What is most preferable financing option for your purchase?
3 month with no/low interest and high installment
5 year with moderate interest and medium installments
15-20 year with high interest and low installments
19. Do you plan to visit the construction site before purchase?
Yes
No
20. If yes, than what will you mostly look for during your visit?
Quality of the material used
Expertise of the construction crew
Suitability of the land
Compliance with regulations
Design of the building
21(a). Did the visit influence your purchase decision?
Yes
No
Applicable

Not

21(b). If yes, to what extend did it influenced?

To a large extend
Little bit

Not at all

Very
Important

Part 4: Satisfaction
22. Do you own a flat/apartment?
Yes

No

23. Are you satisfied with your purchase?

Yes
No
24. What is your feedback about your developer company?
Very good
Good
Honesty about Size, facilities etc.
Proper hand over due date
Promised Construction quality
Relative pricing against competitors
Financing Options
Proper utility services
Design (Interior & Exterior)

Average

Bad Very bad

25. If you need another flat in future, would you considering buy it from the same
developer?
Yes
No
26. What do you think about your company?
Its just a profit concern
It cares for customers like customization
It is doing business simply by building shelters
It performs social responsibility
It solves the residential problems of Dhaka city

TABLES AND FIGURES

Occupation * What is most preferable financing option for your purchase? Cross
tabulation
Count
What is most preferable financing option
for your purchase?
3 month with 5 year with 15-20
year
no/low
moderate
with
high
interest and interest and interest and
high
medium
low
installment
installments installments Total
Occupation Business

24

72

36

132

Government
service

30

18

48

Private Service

84

18

102

Others

6
30

12
198

0
72

18
300

Total

Table: Occupation * Overall quality Crosstabulation

Count
Overall quality
Unimportant Normal Important
Occupation Business
Government
service
Private Service
Others
Total

Very
Important

Total

12

48

66

132

36

12

48

18

48

24

12

102

18

30

96

90

84

300

Table: Occupation * Luxury Crosstabulation

Count
Luxury
Very
Unimporta
Unimportant
nt
Occupation

Normal

Very
Important Important Total

Business

24

36

72

132

Government
service

18

30

48

Private
Service

24

36

42

102

Others

12

18

42

66

72

48

72

300

Total

Table: Occupation * Space Crosstabulation

Count
Space
Unimportant Normal Important
Occupation Business

Total

Very
Important

Total

24

72

36

132

Government
service

48

48

Private Service

36

24

24

18

102

Others

12

18

42

108

96

54

300

Table: Occupation * Location Crosstabulation

Count
Location
Unimportant Normal Important
Occupation Business

Very
Important

Total

30

84

18

132

Government
service

18

24

48

Private Service

54

42

102

Others

18

30

114

138

18

300

Very
Important

Total

Total

Table: Occupation * Company Crosstabulation

Count
Company
Unimportant Normal Important
Occupation Business

Total

36

72

24

132

Government
service

24

24

48

Private Service

42

30

30

102

Others

18

18

66

108

102

24

300

Table: Occupation * Ease of financing like installment payment Crosstabulation

Ease of financing like installment payment
Count

Very
Unimportan
Unimportant
t

Normal

Important

Very
Important

Total

Business
Government
service
Private
Service
Others

42

54

36

132

12

24

48

54

42

102

12

18

Total

42

66

108

60

24

300

Table: Occupation * Facilities of the property Crosstabulation

Count
Facilities of the property
Normal
Occupation

Very Important

Total

Business

96

36

132

Government service

18

30

48

30

36

36

102

18

18

30

168

102

300

Private Service
Others
Total

Important

Table: Occupation * Exterior design Crosstabulation

Count
Exterior design
Unimportant Normal Important
Occupation Business
Government
service
Private Service
Others
Total

Very
Important

Total

48

48

30

132

48

48

30

24

48

102

18

18

36

120

114

30

300

Table: Occupation * Interior design Crosstabulation

Count
Interior design
Unimportant Normal Important
Occupation Business

Total

Very
Important

Total

24

78

30

132

Government
service

30

12

48

Private Service

30

18

30

24

102

Others

18

18

36

90

120

54

300