Volume 32, Issue 1, 2023
DOI: 10.53555/03276716.2023.7008
Decoding The Psychological Drivers of Real Estate Decisions - A Behavioural Finance Perspective
Abstract
Understanding the financial behaviour of investors is very important because it is the underlying factor which showcases the financial wellness and wealth accumulated by the public. Individual Impulsive beliefs stimulate psychological factors which in turn affect behaviour (Azjen, 1980) Aim of this research is to test the complex relationship between financial attitude, financial knowledge, and their combined influence on financial behaviour related to real estate investments. With a growing emphasis on financial well-being, understanding the factors that shape individuals' financial decisions is of paramount importance. The study reviews existing literature provides a conceptual framework, and offers insights into how positive financial attitudes and enhanced financial knowledge can lead to responsible financial behaviours. Data was collected from the southern part of India, using Partial Least Square-Structural Equation Modeling relationship between the variables were analysed. Through an analysis of empirical studies, this article highlights the significant role psychological and cognitive factors play in shaping financial outcomes. The findings of this study help the real estate promoters to understand the decision-making style and mentality of investors towards real estate investments.
Keywords
Financial Attitude, Financial Knowledge, Financial Self-Efficacy, Financial Behaviour