Psychological Factors Influencing Post-COVID Real Estate Investment Trends in India

Abstract

This research examines the influence of key psychological factors on real estate investment trends in India during the post-COVID-19 period. The study aims to understand how behavioural biases shape investor decision-making in a developing real estate market recovering from an unprecedented global crisis. A cross-sectional and quantitative research design was adopted to investigate the proposed relationships between psychological variables and investment trends. Primary data were collected through structured survey questionnaires administered to individual investors actively participating in the Indian real estate market. The collected responses were analysed using Smart- PLS statistical software to test the research hypotheses and assess the strength and significance of the relationships among the constructs. The findings indicate that loss aversion, herd mentality, and overconfidence exert a significant and positive influence on post-pandemic real estate investment trends. These results suggest that investors’ emotions, social influences, and self-perceptions play a crucial role in shaping investment behaviour during periods of uncertainty and recovery. In contrast, mental accounting shows a positive but statistically insignificant impact on investment trends, indicating a relatively weaker role in post-pandemic decision-making. Overall, this study contributes to the growing body of literature on behavioural finance by providing empirical evidence from a developing real estate market. It enhances understanding of investor psychology and offers valuable insights for policymakers, market participants, and researchers examining post-pandemic investment behaviour in India.

Keywords: Psychological Factors, Real Estate investment, COVID-19, India

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