Abstract:
The main objective of this study would be to investigate determinants of market price of residential house in case of Burayu town. This study attempted to identify the key market price determinants of residential houses in Burayu town. Mostly multiple linear regression analysis was employed to estimate the significance level of the Structural attributes, Locational attributes, and environmental attributes, this paper has used regression techniques through which coefficients of various dimensions of above-mentioned attributes are measured. The analysis of this investigation was employed both descriptive analysis and econometric model analysis using the OLS (ordinary least square analysis) and cross- sectional data and also study was used diagnostic test like multi-collinearity and normality test. The study was used both primary and secondary data. Using both purposive and proportionate sampling technique sample of 394 residential house owners were selected for the study. The study found that among structural attributes, land size, access of water, access of toilet, age houses, floors materials, and the number of bedrooms has a significant impact on housing prices. Additionally, from the locational attributes distance from hospital, distance from school significant. From environmental attributes that included access of cleaned area were also significant. Structural attributes, Locational attributes, and environmental attributes are the key determinants for price of residential houses and that is why the study recommend investors and others house suppliers considered the role of these factors as significant in developing any residential project. So the study recommend house supplier have to develop houses by giving priority for proximity of different infrastructures like hospital and school, because the house buyers demand house that is nearest to this infrastructure. The investors and house suppliers should be built the houses which have access toilet, water and houses that surrounding is cleaned to stabilize the price residential house market
