Influence of Behavioural Factors on Real Estate Investment – A Study

Influence of Behavioural Factors on Real Estate Investment – A Study

Dr.V.Usha kiran ,Senior Professor of Commerce (Retd.),Osmania University Hyderabad,

Abdul Matheen HOD in Commerce and Management Sri Sai Vikas Degree Collage and Research scholar ,Osmania University Hyderabad

Abstract.

This study examines how behavioural factors influence the real estate investment decisions. Several behavioural biases can affect the decision-making process while making real estate investments, leading investors to deviate from reason and make irrational decisions, according to behavioural finance, an investor is influenced by many personal traits and social influences. Rather than depending upon the return on investment, the investors tend to consider how others are behaving while investing and mentally calculate the profits or losses on investment. Herd behaviour, Heuristic behaviour, prospects calculations, loss regret or aversion etc are some of the behavioural factors which operate and influence the choice of investment in real estate, Primarily, this empirical research focusses on how the behavioural factors tend to influence the real estate investors. Factor analysis was applied on the data collected from 506 real estate investors and all the constructs have been grouped into important components.

Keywords:   Investor Sentiment, Behavioural factors, Factor analysis, Bias