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Home, Sweet Home: Guptas' Real Estate De...

Das, Prashant

Case

Home, Sweet Home: Guptas' Real Estate Decision (A)

Das, Prashant

IIMA-FA0565(A) | Published March 28, 2022 | 7 pages Case

Collection: Indian Institute of Management, Ahmedabad

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Learning Objectives

The case provides a systematic approach to a classical real estate decision of households: How much will it cost to build their dream home and buy a land parcel for that purpose? Subjective and quantitative aspects are considered to decide on a land parcel, size of the home and estimate the construction cost. The main decision-point is: Is it feasible to build a home from scratch (against buying a condominium unit) given the couple’s budget and social stratum?

Interpret zoning regulations; Deciding on an optimal plot size; List the items for a broad cost estimation; Conduct a back-of-the-envelope cost analysis