Determinants of Residential Real Estate Prices in Bahir Dar City

Tsegachew, Degu

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dc.contributor.author	Tsegachew, Degu
dc.date.accessioned	2018-09-25T03:25:31Z
dc.date.available	2018-09-25T03:25:31Z
dc.date.issued	2018-09-25
dc.identifier.uri	http://hdl.handle.net/123456789/8973
dc.description.abstract	The price of a residential real estate is not determined arbitrarily rather it results from the implicit price of housing attributes concerning structural, neighborhood and environmental characteristics. Market participants lack sufficient information about determinant attributes to undertake transactions. The process and procedure in the residential real estate market are complex both for the sellers and buyers. This makes the involvement of brokers compulsory. This study analyzed the determinants of residential real estate prices using a cross-sectional data collected from 286 randomly selected residential real est ate buyers. A multistage sampling technique has been used to select sample respondents. In this study, both descriptive analysis and econometric model (Hedonic price model) have been used to analyze the data. The descriptive analysis result indicates prices of residential real estates estimated by municipalities; and reported by buyers and sellers for title transfer purpose are respectively 3.62 and 3.04 times lower from the actual sales price of houses. Most of residential real estates are hold with freehold system and have no accessible road or have access to dirt type road. The econometric estimation result shows that plot size, building current price, location, and wall finishing material are common and significant determinants of real/actual and estimated price levels. Over these common determinants, the estimated price level is significantly affected by the existence of subsidiary buildings and by the tenure system under which the property is possessed. Whereas, that of real transaction/actual selling price is significantly influenced by the roof of the main building. The findings of this study call scale-up of residential real estate market and its price determination practice in Bahir Dar city in particular and in Ethiopia in general. In addition, concern has to be given in increasing the supply of land, improving the transaction process and valuation skill of appraisers. Finally, principles and regulations on real estate transactions, price estimations and on the rate of payments have to be modified and adjusted with the market situation. Keywords: hedonic price model, determinant, residential and real estate	en_US
dc.language.iso	en_US	en_US
dc.subject	land	en_US
dc.title	Determinants of Residential Real Estate Prices in Bahir Dar City	en_US
dc.type	Thesis	en_US