Expediency of Investments in Real Estate Sector

Jayanthi, M; Saravanakumar, S

doi:10.1149/10701.3973ecst

Cited by 2 publications

(1 citation statement)

References 20 publications

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“…There are also numerous publications on the real estate market and investment possibilities (Jayanthi and Saravanakumar, 2022) in a sector that could be very profitable. In this context, we note the study by Tang et al (2022), who analysed stock market responses and the movement of returns.…”

Section: Securities Market and Investmentsmentioning

confidence: 99%

Profitability and financial performance of Italian real estate companies: quantitative profiles

Migliaccio,

De Palma

2023

IJPPM

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PurposeThis study illustrates the economic and financial dynamics of the sector, analysing the evolution of the main ratios of profitability and financial structure of 1,559 Italian real estate companies divided into the three macro-regions: North, Centre and South, in the period 2011–2020. In this way, it is also possible to verify the responsiveness to the 2020 pandemic crisis.Design/methodology/approachThe analysis uses descriptive statistics tools and the ANOVA method of analysis of variance, supplemented by the Tukey–Kramer test, to identify significant differences between the three Italian macro-regions.FindingsThe study shows the increase in profitability after the 2008 crisis, despite its reverberation in the years 2012–2013. The financial structure of companies improved almost everywhere. The pandemic had modest effects on performance.Research limitations/implicationsIn the future, other indices should be considered to gain a more comprehensive view. This is a quantitative study based on financial statements data that neglects other important economic and social factors.Practical implicationsPublic policies could use this study for better interventions to support the sector. In addition, internal management can compare their company's performance with the industry average to identify possible improvements.Social implicationsThe research analyses an economic field that employs a large number of people, especially when considering the construction and real estate services covered by this analysis.Originality/valueThe study contributes to the literature by providing a quantitative analysis of industry dynamics, with comparative information that can be deduced from financial statements over the years.

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Section: Securities Market and Investmentsmentioning

confidence: 99%

Profitability and financial performance of Italian real estate companies: quantitative profiles

Migliaccio,

De Palma

2023

IJPPM

View full text Add to dashboard Cite

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Integrating rational and irrational factors towards explicating investment satisfaction and reinvestment intentions: a study in the context of direct residential real estate

R.,

Perumandla,

Bhattacharyya

2024

IJHMA

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Purpose The purpose of this study is to understand the investment decision-making of real estate investors in housing, highlighting the interplay between rational and irrational factors. In this study, investment satisfaction was a mediator, while reinvestment intention was the dependent variable. Design/methodology/approach A quantitative, cross-sectional and descriptive research design was used, gathering data from a sample of 550 residential real estate investors using a multi-stage stratified sampling technique. The partial least squares structural equation modelling disjoint two-stage approach was used for data analysis. This methodological approach allowed for an in-depth examination of the relationship between rational factors such as location, profitability, financial viability, environmental considerations and legal aspects alongside irrational factors including various biases like overconfidence, availability, anchoring, representative and information cascade. Findings This study strongly supports the adaptive market hypothesis, showing that residential real estate investor behaviour is dynamic, combining rational and irrational elements influenced by evolutionary psychology. This challenges traditional views of investment decision-making. It also establishes that behavioural biases, key to adapting to market changes, are crucial in shaping residential property market efficiency. Essentially, the study uncovers an evolving real estate investment landscape driven by evolutionary behavioural patterns. Research limitations/implications This research redefines rationality in behavioural finance by illustrating psychological biases as adaptive tools within the residential property market, urging a holistic integration of these insights into real estate investment theories. Practical implications The study reshapes property valuation models by blending economic and psychological perspectives, enhancing investor understanding and market efficiency. These interdisciplinary insights offer a blueprint for improved regulatory policies, investor education and targeted real estate marketing, fundamentally transforming the sector’s dynamics. Originality/value Unlike previous studies, the research uniquely integrates human cognitive behaviour theories from psychology and business studies, specifically in the context of residential property investment. This interdisciplinary approach offers a more nuanced understanding of investor behaviour.

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Expediency of Investments in Real Estate Sector

Cited by 2 publications

References 20 publications

Profitability and financial performance of Italian real estate companies: quantitative profiles

Profitability and financial performance of Italian real estate companies: quantitative profiles

Integrating rational and irrational factors towards explicating investment satisfaction and reinvestment intentions: a study in the context of direct residential real estate

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