Segmentation and the value frame of buyers of residential apartments

Abstract

This article refers to a market research of the real estate market, as the most important input in the process of assessing the value of real estate.The main objective of the research is to create a so-called value frame, formed as a table of value ranges of influential factors related to the individual acquired residential real estate segment or to the particular type of a potential buyer.The results generally show that the participants expressed the highest preference values in terms of physical factors; at least a half of buyers are prepared, for a radical change of these, to pay more / less than 30% of the average segment real estate value. Within physical factors a large importance is attributed to the quality of the object factors (age, construction, maintenance). At least a half of potential buyers of apartments are prepared to pay more / less than 22% for the studied factors of micro location; however, also the socio-economic factors have been recognised as relatively important, with segmental median values ranging from 6.8% to 8.9%, and factors of functional and relative size of apartments, with segmental range of median values of 1.5% to 3.2%. The results of the survey are particularly important for urban planners (the most cost-effective use of space), investors (an analysis of target groups of customers), and real estate appraisers (real estate market).

Keywords

• value frame
• buyer’s preferences
• apartment
• real estate market
• market segmentation