Determinants of Real Estate Investment Behaviour: Evidence From Investor Preferences and Risk Perceptions

The study examines the factors influencing individual decision-making in real estate investment, with particular emphasis on financial, locational, legal, infrastructural, and behavioural considerations. Based on responses from 48 participants, the study analyses investors’ perceptions of factors such as location, expected return, legal documentation, infrastructure, future growth potential, safety, liquidity, and risk tolerance. The findings indicate that safety and neighbourhood quality, future growth potential, location, and expected return are the most influential considerations. The results further suggest that investors primarily perceive real estate as a long-term wealth-creation instrument, while recognising its liquidity constraints and associated risks. Overall, the study highlights the multidimensional nature of real estate investment decision-making and the importance of balancing return expectations, risk considerations, and property-specific characteristics.

Real Estate Investment; Investor Behaviour; Investment Decision-Making; Location; Expected Return; Risk Tolerance

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