Identifying Factors contributing to Homebuyers’ Satisfaction in an Affordable Housing market using CFA and SEM: A Study in Kolkata, India

Purpose This study aims to identify the key factors that significantly influence Homebuyers’ satisfaction in privately developed affordable housing in Kolkata. Design/methodology/approach The literature review identified 119 parameters relevant to evaluating homebuyers’ satisfaction, complemented by prior studies from various national and international contexts. Subsequently, a questionnaire survey was conducted on 383 households residing in affordable housing units across 32 privately developed housing complexes in Kolkata. Respondents rated their satisfaction on a five-point Likert-type scale for each parameter. The study then employed Confirmatory Factor Analysis (CFA) and Structural Equation Modelling (SEM) to determine the significant latent constructs and identify the determinants of homebuyers’ satisfaction. Findings The findings revealed both Building-level and Neighbourhood-level factors are significant contributors to Homebuyers’ satisfaction. Specifically, building-level determinants such as the carpet area, natural ventilation and water supply systems were found to be influential. At the neighbourhood level, factors including traffic congestion, unpleasant odours, waterlogging, noise and proximity to playgrounds emerged as critical determinants. Originality/value Addressing a notable research gap in the affordable housing market of Kolkata – one of India’s Tier-1 cities – this study provides valuable insights into the elements that drive customer satisfaction, thereby contributing to both academic research and practical applications in urban housing development.