1.

INTRODUCTION

1.1 ABSTRACT
This study examines the investor perception of investing in real estate. Real
estate is one of the most significant investment opportunities available to
investors. It is a popular asset class that is believed to offer high returns and
stability. However, real estate investments are also known to carry substantial
risks, and investor perception towards this asset class is crucial in determining
investment decisions. The study aims to investigate how investors perceive the
risks and benefits of investing in real estate, the factors that influence their
decision-making, and their investment preferences. The findings of the study
have implications for investors, policymakers, and real estate professionals.

1.2 INTRODUCTION
Investing in real estate is a significant decision that involves a considerable
amount of money, time, and effort. It is a popular asset class that attracts
investors who are looking for stable returns, diversification, and long-term
capital appreciation. However, investing in real estate is not without risks, and
investors' perception of these risks is crucial in determining their investment
decisions. This study seeks to understand the investor perception of investing
in real estate and the factors that influence their decision-making.

Real estate investments offer several advantages over other asset classes, such
as stocks and bonds. Firstly, they offer stable cash flows in the form of rental
income, which can provide a steady stream of income for investors. Secondly,
real estate investments have historically provided higher returns than other
asset classes, such as stocks and bonds. Finally, real estate investments provide
diversification benefits, as they have low correlations with other asset classes,
which can reduce portfolio risk.

However, investing in real estate also carries substantial risks, such as market
volatility, liquidity risk, interest rate risk, and operational risk. Real estate
investments are also subject to regulatory and legal risks, such as changes in
zoning laws, environmental regulations, and tax laws. These risks can lead to
substantial losses for investors and can negatively impact their investment
returns.
The perception of these risks by investors can influence their investment
decisions. This study seeks to investigate the factors that influence investor
perception towards real estate investments. The study will examine the role of
demographics, investment experience, risk tolerance, investment goals, and
investment horizon in shaping investor perception toward real estate
investments.

The study will also investigate the investment preferences of investors in real
estate. It will examine the types of real estate investments that investors prefer,
such as residential, commercial, or industrial properties. The study will also
explore the investment strategies that investors use when investing in real
estates, such as direct ownership, real estate investment trusts (REITs), or real
estate mutual funds.

The findings of this study will have implications for investors, policymakers,
and real estate professionals. By understanding the factors that influence
investor perception towards real estate investments, policymakers can design
policies that encourage investment in this asset class. Real estate professionals
can use the findings of this study to develop investment products that meet the
needs and preferences of investors.

Real estate is a significant sector in the Indian economy and has a rich history
dating back to ancient times. Real estate refers to land, buildings, and other
improvements on the land, such as roads, utilities, and other infrastructure. In
this answer, we will discuss the history, features, advantages, disadvantages,
and impact of real estate on Indian investment.

Research questions and objectives:

The following research questions and objectives will guide this study:

1. What are the key factors that influence investor perception toward
investment in real estate?
2. How do these factors vary across different demographics and real estate
asset classes?
3. What are the key drivers of investor sentiment toward real estate
investment?
4. What are the key factors that influence investor perception toward
investment in real estate?
5. How do these factors vary across different demographics and real estate
asset classes?
6. What are the key drivers of investor sentiment toward real estate
investment?

Overall, this study will contribute to a better understanding of the factors that
shape investor perception toward real estate investment and help investors
make informed investment decisions. By identifying the key drivers of
investor sentiment towards real estate investment, this study will also provide
valuable insights for real estate professionals and policymakers on how to
respond to changing market conditions and investor preferences

Real estate investment has become a popular investment option for investors
around the world. In recent years, it has also become increasingly popular
among retail investors, as they seek to diversify their investment portfolio and
 achieve higher returns. Real estate investment offers various benefits, such as
steady cash flow, tax advantages, and capital appreciation. However, investing
in real estate can be complex and challenging, as it requires a significant
amount of capital, knowledge, and expertise.

1.2 HISTORY OF REAL ESTATE IN INDIA?

REAL ESTATE INVESTMENT IS A LONG GRIND:

 The returns from real estate investing generally only accrue over an extended
period of time, and only if you purchase judiciously and invest enough to properly
maintain properties.
 Also, depending on the types of properties acquired and the nature of your tenants,
it may be necessary to spend a substantial amount of time managing the
properties.

Real Estate Requires Maintenance :

There may be times when unexpected maintenance issues arise, such as a
failed water heater or a leaky roof. The associated repair or replacement
costs may be substantial, and could wipe out your cash reserves. This can
come as a particular surprise when the home inspection on a recently
acquired property did not spot the issue

The History of Real Estate :

For almost half of human history, our ancestors moved with the four-legged
food supplies of their respective areas, leaving only trace signs of their lives
in the form of cave drawings, stone weapons and tools, and other artifacts.

Over time, our ancestors gradually abandoned the hunter-gatherer lifestyles.

This transition period spanned between 30,000 BC and 15,000 BC.
This change, though, was far from global, and hunter-gatherer societies still
survive in some areas of the world today.

But it did mark a major shift toward an agrarian society. It also heralded the
advent of homeownership in a country that was eager to establish settlement
from east to west.

Real estate in India has a long and diverse history, with ancient texts
describing the importance of land as a resource. The ancient Hindu text, the
Arthashastra, described the land as a critical resource for economic growth and
advocated for the efficient use of land for agriculture and commerce. The
Mauryan empire, which ruled India from 322 BCE to 185 BCE, built roads,
canals, and other infrastructure to facilitate trade and commerce. During the
Mughal period, significant architectural feats such as the Taj Mahal and the
Red Fort were constructed, which remain popular tourist attractions today.

Real estate in India has gone through various phases, and each phase has
contributed to the growth of the sector. The liberalization of the Indian
economy in 1991 opened up new avenues for foreign investment in the sector,
and this led to the growth of real estate companies and the development of
modern infrastructure. In recent years, the sector has witnessed the
introduction of several regulatory changes such as RERA (Real Estate
Regulation and Development Act), GST (Goods and Services Tax), and
Benami Transactions Act, which aim to bring transparency and accountability
to the sector.

Real estate has been an important part of the Indian economy for centuries. In
ancient times, land ownership was a symbol of power and wealth, and many
dynasties, such as the Mughals, built grand palaces and forts as a sign of their
wealth and influence.
During the British colonial period, the government introduced several laws and
regulations to regulate land ownership and use. The British government
introduced the concept of individual land ownership and enacted the Indian
Registration Act of 1908, which required the registration of all land
transactions.

After India gained independence in 1947, the government introduced several

policies to promote industrialization and economic growth. The government
encouraged private investment in real estate by offering tax incentives and
subsidies. The government also introduced the Urban Land Ceiling and
Regulation Act (ULCRA) in 1976, which aimed to prevent the concentration
of land in the hands of a few individuals and promote equitable distribution of
land.
In the 1990s, the Indian government initiated economic reforms to liberalize
the economy and attract foreign investment. The real estate sector was one of
the major beneficiaries of these reforms, and foreign investment in the sector
increased significantly. The government also introduced the Special Economic
Zone (SEZ) policy in 2000, which provided tax incentives and other benefits
to developers who set up industrial parks and other infrastructure projects.
In recent years, the Indian government has introduced several reforms to
promote transparency and accountability in the real estate sector. The Real
Estate Regulation and Development Act (RERA) of 2016, for example, aimed
to protect the interests of homebuyers and regulate the real estate sector. The
Goods and Services Tax (GST) introduced in 2017 also aimed to bring
transparency and standardization to the sector by replacing multiple state and
central taxes with a single tax.

1.4 FEATURES OF REAL ESTATE INVESTMENT?

 The real estate sector in India is characterized by high demand and supply. It
offers a wide range of investment options, including residential, commercial,
and industrial properties. The sector is highly fragmented, with many small
and medium-sized players. The sector is heavily regulated, with multiple laws
and regulations governing land use, construction, and development. The sector
is also subject to market fluctuations, with prices often influenced by supply
and demand, interest rates, and other macroeconomic factors.
The real estate sector in India is known for its fragmented nature, with many
small and medium-sized players. The sector is also characterized by a high
level of cash transactions, which can make it difficult to track and regulate.
The Indian real estate market is diverse, offering a range of investment options
such as residential, commercial, and industrial properties. The sector is heavily
regulated, with multiple laws and regulations governing land use, construction,
and development. The sector is also subject to market fluctuations, with prices
often influenced by supply and demand, interest rates, and other
macroeconomic factors.

When we talk about real estate, we can say that it requires a lot of
foresightedness and capital investment to expect fruitful returns.
Tangible:
Real estate or properties are one of those investments which have a physical
existence and can be touched and seen.
Immune to Inflation:
a. When economic inflation creates a negative impact on the value of other
investments, investing in real estate is a fruitful option.
b. It is the only investment that results in value appraisal in adverse situations.
Allows Use of Leverage:
Financial institutions are attracted to funding for real estate because of its real
or physical existence.
Uncertain Maturity Period:
a. Real estate investment does not have any fixed maturity period like other investments
such as fixed deposits and bonds.
b. It is the owner who decides whether to hold the property or sell it.
Value Enhancement:
a. Investing in properties can provide dual benefits to the investors.

b. On the one hand, real estate generates rental income, and on the other hand, its value
keeps on increasing in the long run.
Low Liquidity:
a. One of the essential features of real estate is that it is a capital asset.
b. Therefore, it cannot be frequently bought or sold like stocks or equity.
Needs Management:
Real estate investment is buying a physical asset which involves the
expenditure on its maintenance.
The investor also needs to manage the source of income so generated.
Universally Acceptable as Collateral: Financing the properties by taking
them as collateral is very common among the banks and other financial
institutions.
Profitable Even During Recession: Real estate investments have been
considered as one of the safest investments. If done wisely, they yield profit or
generate income even at the time of recession.

1. Diverse Investment Options - The Indian real estate market offers diverse
investment options such as residential, commercial, and industrial properties.
Investors can choose from a variety of options based on their risk appetite and
investment goals. Residential properties offer stable rental income and capital
appreciation potential, while commercial properties offer higher rental yields
and are more suitable for long-term investors. Industrial properties, such as
warehouses and factories, offer higher rental yields but require a significant
investment.

2. Heavily Regulated - The real estate sector in India is heavily regulated,

with multiple laws and regulations governing land use, construction, and
development. The regulatory framework includes laws such as RERA,
Building, and Other Construction Workers Welfare Cess Act, and The Real
Estate (Regulation and Development) Act. This regulatory framework aims to
protect the interests of homebuyers, promote transparency and accountability,
and prevent fraudulent practices in the sector.

3. Fragmented Nature - The Indian real estate sector is characterized by a

large number of small and medium-sized players. This fragmentation makes it
difficult to regulate the sector and creates a lack of transparency. However,
this fragmentation also creates opportunities for investors to identify
undervalued properties and negotiate better deals.

4. High Level of Cash Transactions - The Indian real estate market is also
known for its high level of cash transactions, which can make it difficult to
track and regulate. However, this also makes it easier for investors to negotiate
deals and avoid the high transaction costs associated with financing.

5. Subject to Market Fluctuations - The real estate sector is subject to

market fluctuations, with prices often influenced by supply and demand,
interest rates, and other macroeconomic factors. Investors must be aware of
these fluctuations and their potential impact on their investments.
6. Tax Benefits - Real estate investment in India provides tax benefits, such as
deductions for mortgage interest, property taxes, and depreciation. These tax
benefits can significantly reduce the tax liability of investors and increase their
after-tax returns.

7. Diverse Market Segments - The Indian real estate market is diverse, with
different market segments offering varying levels of risk and return. The
affordable housing segment, for example, offers stable cash flows and capital
appreciation potential, while the luxury segment offers higher returns but is
subject to greater market volatility.

1.5 ADVANTAGES OF REAL ESTATE INVESTMENT?

Real estate investment in India offers several advantages, such as stable cash
flows in the form of rental income, capital appreciation, and diversification.
India has a high population growth rate, and there is a significant demand for
housing, particularly in urban areas. The Indian government has launched
several initiatives to promote affordable housing, such as the Pradhan Mantri
Awas Yojana, which offers subsidies to low-income families to purchase
homes. Real estate investment also provides tax benefits, such as deductions
for mortgage interest, property taxes, and depreciation.
Real estate investment in India offers several advantages, including stable cash
flows in the form of rental income, capital appreciation, and diversification.
With India's rapidly growing population, there is a significant demand for
housing, particularly in urban areas. This creates opportunities for real estate
investors, particularly in the affordable housing segment. Real estate
investment also provides tax benefits, such as deductions for mortgage
interest, property taxes, and depreciation.

Here are some additional details about the features of real estate investment in
India and their implications:

1. Diverse Investment Options - The Indian real estate market offers diverse
investment options such as residential, commercial, and industrial
properties. Investors can choose from a variety of options based on their
risk appetite and investment goals. Residential properties offer stable rental
income and capital appreciation potential, while commercial properties
offer higher rental yields and are more suitable for long-term investors.
Industrial properties, such as warehouses and factories, offer higher rental
yields but require a significant investment.

2. Heavily Regulated - The real estate sector in India is heavily regulated,

with multiple laws and regulations governing land use, construction, and
development. The regulatory framework includes laws such as RERA,
Building and Other Construction Workers Welfare Cess Act, and The Real
Estate (Regulation and Development) Act. This regulatory framework aims
 to protect the interests of homebuyers, promote transparency and
accountability, and prevent fraudulent practices in the sector.

3. Fragmented Nature - The Indian real estate sector is characterized by a

large number of small and medium-sized players. This fragmentation
makes it difficult to regulate the sector and creates a lack of transparency.
However, this fragmentation also creates opportunities for investors to
identify undervalued properties and negotiate better deals.

4. High Level of Cash Transactions - The Indian real estate market is also
known for its high level of cash transactions, which can make it difficult to
track and regulate. However, this also makes it easier for investors to
negotiate deals and avoid the high transaction costs associated with
financing.

5. Subject to Market Fluctuations - The real estate sector is subject to

market fluctuations, with prices often influenced by supply and demand,
interest rates, and other macroeconomic factors. Investors must be aware
of these fluctuations and their potential impact on their investments.

6. Tax Benefits - Real estate investment in India provides tax benefits, such
as deductions for mortgage interest, property taxes, and depreciation.
These tax benefits can significantly reduce the tax liability of investors and
increase their after-tax returns.

7. Diverse Market Segments - The Indian real estate market is diverse, with
different market segments offering varying levels of risk and return. The
affordable housing segment, for example, offers stable cash flows and
capital appreciation potential, while the luxury segment offers higher
returns but is subject to greater market volatility.

1.6 DISADVANTAGE OF REAL ESTATE INVESTMENT

Real estate investment in India also carries several risks, such as market
volatility, liquidity risk, interest rate risk, and operational risk. There is a
lack of transparency in the sector, with many unregulated players and
insufficient data available for analysis. The sector is also subject to
regulatory and legal risks, such as changes in zoning laws, environmental
regulations, and tax laws. The sector is heavily dependent on external
factors, such as government policies, interest rates, and macroeconomic
conditions.

Real estate investment in India can be subject to liquidity risk, high initial
investment, maintenance costs, regulatory challenges, market volatility,
political risk, and limited market transparency. Investors must carefully
consider these factors before investing in the Indian real estate market.
 Here are some potential disadvantages of real estate investment in India
and their implications:

1. Liquidity Risk - Real estate investment in India can be illiquid, meaning

that it can be difficult to sell a property quickly, especially during a
downturn in the market. This lack of liquidity can tie up investors' capital
for an extended period, which can limit their flexibility and diversification
options.

2. High Initial Investment - The initial investment required for real estate in
India can be high, particularly in metropolitan areas where property prices
are high. This can be a significant barrier to entry for some investors,
particularly those with limited capital.

3. Maintenance Costs - Property ownership in India also requires ongoing

maintenance costs, which can include repairs, upgrades, and other
expenses. These costs can add up over time and reduce the overall return
on investment.

4. Regulatory Challenges - The regulatory environment in India can be

challenging to navigate for real estate investors. The complex laws and
regulations governing land use, construction, and development can create
uncertainty and add to the transaction costs associated with real estate
investment.

5. Market Volatility - The Indian real estate market can be subject to market
volatility, with prices often influenced by macroeconomic factors and
supply and demand dynamics. This volatility can create uncertainty and
risk for investors, particularly those with shorter investment horizons.

6. Political Risk - The real estate sector in India can also be subject to
political risk, including changes in government policies, tax laws, and
other regulatory changes. These risks can impact the value of investments
and create uncertainty for investors.

7. Market Transparency - The Indian real estate market can lack

transparency, with limited data and information available to investors. This
lack of transparency can make it challenging for investors to evaluate
potential investments and make informed decisions.

1.7 IMPACT OF REAL ESTATE ON INDIAN INVESTMENT

The real estate sector is a significant contributor to the Indian economy,
accounting for approximately 6-8% of the country's GDP. The sector provides
significant employment opportunities, with over 40 million people employed
directly or indirectly in the sector. Real estate investment also contributes to
infrastructure development, such as roads, bridges, and other amenities, which
can stimulate economic growth. The sector has a significant impact on the
Indian stock market, with many real estate companies listed on stock
exchanges. The sector is also a significant recipient of foreign investment, with
many foreign investors investing in Indian real estate.

The real estate sector is a significant contributor to the Indian economy,

accounting for approximately 6-8% of the country's GDP. The sector provides
significant employment opportunities, with over 40 million people employed
directly or indirectly in the sector. Real estate investment also contributes to
infrastructure development, such as roads, bridges, and other amenities, which
can stimulate economic growth. The sector has a significant impact on the
Indian stock market, with many real estate companies listed on stock
exchanges. The sector is also a significant recipient of foreign investment, with
many foreign investors investing in Indian real estate.

Apart from the above information, it's worth noting that the Indian real estate
sector is witnessing a transformation due to the adoption of technology, such
as PropTech (property technology) and FinTech (financial technology). These
technologies are enabling real estate companies to streamline their processes
and improve the customer experience. Additionally, the COVID-19 pandemic
has had a significant impact on the sector, with a shift towards remote work
and an increased demand for affordable housing. As a result, the sector is
expected to witness significant changes in the coming years.

1. Economic Growth - Real estate investment in India can contribute to

economic growth by creating jobs in construction and related industries.
Additionally, increased investment in the sector can lead to the
development of new infrastructure, which can further stimulate economic
growth.

2. Housing Shortages - Real estate investment in India can also help address
housing shortages, particularly in urban areas. The growing demand for
affordable housing has created opportunities for developers and investors
to invest in low-cost housing projects.

3. Impact on Environment - Real estate development in India can have a

significant impact on the environment, particularly in areas of high
biodiversity or areas with limited water resources. The construction of
large-scale projects can result in deforestation, habitat destruction, and
increased water usage, among other environmental impacts.
4. Urbanization - Real estate investment in India can also contribute to
urbanization, with the development of new commercial and residential
projects in urban areas. This urbanization can lead to increased demand for
infrastructure, including transportation, energy, and water, which can strain
existing resources and create new environmental and social challenges.

5. Socioeconomic Impact - Real estate investment in India can have a

significant socioeconomic impact, particularly on vulnerable communities.
The development of new projects can lead to the displacement of local
communities, particularly those with limited resources or political power.
Additionally, real estate development can exacerbate income inequality by
increasing property prices and limiting access to affordable housing.

6. Impact on Property Prices - Real estate investment in India can impact

property prices, particularly in areas with high demand or limited supply.
This can result in rapid increases in property prices, which can create
affordability challenges for homebuyers and renters.

1.8 Why Is Studying Investor Perception Important In Real Estate

Investment?
Investor perception plays a significant role in determining the demand and
supply of real estate investments. It affects the decision-making process of
investors, such as whether to invest in a particular property, how much to
invest, and when to invest. By studying investor perception towards real
estate investment, one can gain insights into market trends, investor
behavior, and potential risks and opportunities.

Factors That Influence Investor Perception Towards Real Estate

Investment:

The overall health of the economy, such as inflation, interest rates, and
GDP growth, can affect investor perception towards real estate investment.
Market trends: The performance of the real estate market, including supply
and demand dynamics, rental rates, and property values, can also influence
investor perception.

Personal experiences: Past experiences with real estate investments can

shape an investor's perception of future investment opportunities. Positive
experiences may lead to increased confidence, while negative experiences
may result in caution or reluctance to invest.

Methods for studying investor perception towards real estate

investment:

Surveys: Surveys can be used to gather information on investor attitudes

and perceptions toward real estate investment. This method can be
conducted online or through telephone interviews and can provide valuable
insights into investor behavior and preferences.

Focus groups: Focus groups involve gathering a small group of investors

to discuss their perceptions towards real estate investment in a group
setting. This method can provide more in-depth insights into investor
attitudes and opinions.

Data analysis: Data on real estate market trends and investor behavior can
be analyzed to identify patterns and trends in investor perception towards
real estate investment.

Key findings from studies on investor perception towards real estate

investment:

Real estate is viewed as a safe and stable investment option.

Location is a key factor in real estate investment decision-making.
Rental income is an important consideration for investors.
Younger investors tend to prefer real estate investment trusts (REITs) over
direct property investment.

Access to information and market transparency can influence investor

perception.
Implications for real estate investment:
By understanding investor perception towards real estate investment,
investors and real estate professionals can develop investment strategies
that align with market trends and investor preferences. For example,
identifying key factors that influence investor decision-making, such as
location and rental income, can help investors identify properties that are
likely to be in high demand. Additionally, increasing market transparency
and access to information can help build investor confidence and increase
demand for real estate investment opportunities.

1.9 Perception Of Investors:

Investors' perceptions of real estate investment can vary depending on
several factors. Economic conditions play a crucial role in determining
investors' perceptions of real estate investment. When the economy is
doing well, investors tend to have a positive attitude towards real estate
investment as they expect higher returns on their investments. On the other
hand, when the economy is in a recession, investors tend to shy away from
real estate investment due to the perceived risks involved.

Market trends also affect investors' perceptions of real estate investment. In

a bullish market, investors tend to have a positive outlook toward real
estate investment as they expect to achieve higher returns. However, in a
bearish market, investors may be less inclined to invest in real estate as
they may perceive it to be a risky investment.
Personal experiences and demographic characteristics also play a vital role
in determining investors' perceptions of real estate investment. Investors
who have had positive experiences with real estate investors tend to have a
more favorable perception of it. Similarly, investors' age, income, and
education level can influence their perceptions of real estate investment.
The purpose of this study is to investigate the factors that influence
investor perception towards investment in real estate and identify key
drivers of investor sentiment toward real estate investment. By
understanding the factors that shape investor perception towards real estate
investment, investors can make more informed investment decisions.
This study will contribute to a better understanding of the factors that
shape investor perception towards real estate investment. By identifying
the key drivers of investor sentiment towards real estate investment, this
study will also provide valuable insights for real estate professionals and
policymakers on how to respond to changing market conditions and
investor preferences.

Real estate investment offers several benefits to investors, including steady

cash flow, tax advantages, and capital appreciation. However, investing in
real estate can be complex and challenging, as it requires a significant
amount of capital, knowledge, and expertise. Investor perception towards
real estate investment plays a crucial role in determining their investment
decisions and behavior.

Investor perception towards investment in real estate?

Investors' perceptions of real estate investment can be influenced by
several factors, including economic conditions, market trends, personal
experiences, and demographic characteristics. Economic conditions, such
as the state of the economy, can significantly impact investors' perceptions
toward real estate investment. In a bullish economy, investors tend to have
a positive attitude toward real estate investment as they expect higher
returns on their
investments. On the other hand, when the economy is in a recession,
investors tend to shy away from real estate investment due to the perceived
risks involved.

Market trends also play an essential role in determining investors'

perceptions of real estate investment. In a bearish market, investors may
perceive real estate investment as a risky investment and may be less
inclined to invest in it. On the other hand, in a bullish market, investors
tend to have a positive outlook toward real estate investment as they expect
to achieve higher returns.
Personal experiences and demographic characteristics also shape investors'
perceptions of real estate investment. Investors who have had positive
experiences with real estate investors tend to have a more favorable
perception of it. Similarly, investors' age, income, and education level can
influence their perceptions of real estate investment.

To better understand investors' perceptions towards real estate investment,

it is essential to identify the key factors that influence their perception.
Some of the factors that can influence

Real estate is a tangible asset that is considered to be one of the safest

investments. It offers a stable and reliable source of income in the form of
rent and can also appreciate in value over time, providing the investor with
capital gains. Real estate investment is an attractive option for both
individual and institutional investors, with a wide range of investment
vehicles available to suit different investor preferences and investment
objectives.

Individual investors may choose to invest in real estate through direct

ownership of property or by investing in real estate investment trusts
(REITs), which are publicly traded companies that own and manage real
estate properties. Direct ownership provides investors with more control
over the management of the property and potential for higher returns but
also involves more risk and requires significant capital investment. REITs,
on the other hand, allow for more passive investment with lower capital
requirements and provide access to a diversified portfolio of properties.

Institutional investors such as pension funds, insurance companies, and

private equity firms also invest in real estate. These investors typically
have large amounts of capital to invest and are looking for stable, long-
term returns. They may invest in a range of real estate assets, including
commercial properties, residential properties, and industrial properties, and
may use a variety of investment strategies to achieve their objectives, such
as development, value-add, or core strategies.

Investor perception towards real estate investment is influenced by a

variety of factors, including market conditions, economic trends, and
individual investor preferences and objectives. The perception of real
estate as a safe and stable investment may be enhanced during times of
economic uncertainty or market volatility, as investors seek to diversify
their portfolios and protect their wealth. However, negative perceptions of
the real estate market, such as concerns over property bubbles or the
impact of interest rate increases, may also affect investor behavior and
investment decisions.
Overall, real estate investment can offer a range of benefits for investors,
including stable income, capital appreciation, and diversification of
investment portfolios. However, investor perception towards real estate
investment is complex and influenced by a variety of factors, and investors
must carefully consider their objectives and risk tolerance before making
investment decisions

Publicly traded REITs, or real estate investment trusts, are companies that
own commercial real estate (think hotels, offices and malls).
You can invest in shares of these companies on a stock exchange. By
investing in REITs, you are investing in the real estate these companies
own, without as many of the risks associated with owning real estate
directly.
REITs are required to return at least 90% of their taxable income to
shareholders every year.
This means investors can receive attractive dividends in addition to
diversifying their portfolios with real estate. Publicly traded REITs also
offer more liquidity than other real estate investments
If you find yourself suddenly needing some cash, you can sell your
shares on the stock exchange. If you want to invest in publicly traded
REITs, you can do so through a brokerage account.

2. CROWDFUNDING PLATFORM:
Real estate crowdfunding platforms offer investors access to real estate
investments that may bring high returns but also carry significant risk.
Some crowdfunding platforms are open only to accredited investors,
defined as individuals with a net worth

3. RESIDENTIAL REAL ESTATE:

Residential real estate is virtually anywhere that people live or stay, such
as single-family homes, condos and vacation homes.
Residential real estate investors make money by collecting rent (or regular
payments for short-term rentals) from property tenants, through the
appreciated value their property accrues between when they buy it and
when they sell it, or both.
Investing in residential real estate can take many forms.
It can be as simple as renting out a spare room or as complicated as
buying and flipping a house for a profit.

4. COMMERCIAL REAL ESTATE:

Commercial real estate is a space that is rented or leased by a business.
An office building rented by a single business, a gas station, a strip mall
with several unique businesses and leased restaurants are all examples of
commercial real estate.
Unless the business owns the property itself, each business would pay rent
to the property owner.

Industrial and retail real estate can fall under the commercial umbrella.
Industrial real estate generally refers to properties where products are made
or housed rather than sold, like warehouses and factories. Retail space is
where a customer can buy a product or service, like a clothing store.
Commercial properties tend to have longer leases and can command more
rent than residential properties, which may mean greater and steadier long-
term income for a property owner. But they may also require higher down
payments and property management expenses.

5. RAW LAND:
If you build it, will they come? Investors typically buy land for either
commercial or residential development.
But buying land to develop involves a fair amount of market research,
especially if you plan to develop the property yourself.
This type of investment is best suited to someone with a large amount of
capital to invest and a deep knowledge of all things real estate building
codes, zoning regulations, flood plains in addition to an understanding of
the local residential and commercial rental markets.

ECONOMIC CHARACTERISTICS OF REAL ESTATE:

Scarcity: While most of the land on earth remains unused or uninhabited,
the supply of land in a given location or a given quality is generally
limited.
For example, there is a finite number of built or possible high-rise office
buildings in downtown Chicago.
Improvements: Building an improvement on one parcel of land can affect
that land’s value and use. It can also affect the property of neighbors and
the community.

The permanence of investment: The capital that is used for an

improvement of a property can be a large fixed investment.
In addition, the return on such investments tends to be long-term and
relatively stable, making it a permanent investment.
Location- Real estate location is the most important economic
characteristic of the land.
This is because people prefer certain geographic areas over others, and
these preferences will result in different values for properties in different
locations.
For example, 1,100 SF in San Francisco is worth more than 1,100 SF in
Oklahoma City.
 SOCIAL CHARACTERISTICS OF REAL ESTATE:
Immobility: Even though one can move dirt and land, one can never
change the location of a parcel.

Indestructibility: Land is also indestructible, and permanent, and the

location will never change.

Uniqueness: Although land can be similar and homes may even have the
same design or layout, no two pieces of land are ever the same.

2. REVIEW OF LITERATURE.

INTRODUCTION
The study of investor perception toward investment in real estate has been a
topic of interest for scholars and practitioners for several years. This literature
review examines the existing literature on the topic, focusing on the various
factors that influence investor perception towards real estate investment.
The study of investor perception toward investment in real estate has been a
topic of interest for scholars and practitioners for several years. This literature
review examines the existing literature on the topic, focusing on the various
factors that influence investor perception towards real estate investment.

Sonika Gupta and Sanjeev Kumar (2018): the factors that influence investor
perception towards Real Estate Investment Trusts (REITs) in India. The
authors conducted a literature review of previous studies on this topic to
identify the key factors that affect investor perception towards REITs in India.
The authors found that several factors influence investor perception towards
REITs in India. These factors include the regulatory environment, tax
structure, financial performance, transparency, and governance. The study
found that a favorable regulatory environment and a transparent governance
structure are crucial for investors to perceive REITs as viable investment
options. Additionally, the authors found that the financial performance of
REITs is a key factor that affects investor perception.
The study also highlights the importance of investor education and awareness
in shaping investor perception towards REITs. The authors suggest that a lack
of awareness about REITs and their benefits may hinder investor participation
in this asset class.
Overall, the study provides valuable insights into the factors that shape
investor perception towards REITs in India. The authors suggest that
policymakers and market participants should focus on creating a favorable
regulatory environment and promoting transparency and governance in order
to improve investor perception towards REITs. Additionally, the authors
recommend that investor education and awareness programs should be
implemented to promote a greater understanding of REITs and their benefits
among investors.

Radhika D. Hegde and Srinath S. Hebbar (2019): the factors that influence
investor perception towards real estate investment in India. The authors
conducted a comprehensive review of previous studies on this topic to identify
the key factors that affect investor perception towards real estate investment.
The authors found that investor perception towards real estate investment in
India is influenced by several factors, including economic conditions, market
dynamics, government policies, and demographic factors. The study found that
the economic conditions in India, such as inflation, interest rates, and GDP
growth, play a crucial role in shaping investor perception towards real estate
investment. Market dynamics, such as supply and demand, also affect investor
perception towards real estate investment.
The authors also found that government policies, such as tax laws and
regulations, play a significant role in shaping investor perception towards real
estate investment. The study suggests that a favorable tax regime can attract
more investors to the real estate market.
Demographic factors, such as age, income, and education, also influence
investor perception toward real estate investment. The study found that
younger investors are more likely to invest in real estate than older investors,
and investors with higher income and education levels have a more positive
perception of real estate investment.
Overall, the study provides valuable insights into the factors that shape
investor perception towards real estate investment in India. The authors
suggest that policymakers and market participants should focus on creating a
favorable economic environment and promoting favorable government
policies to improve investor perception towards real estate investment.
Additionally, the authors recommend that investor education and awareness
programs should be implemented to promote a greater understanding of real
estate investment among investors.

Sonal Singhal and Ashish Kumar Singh (2016): the factors that influence
investor perception towards real estate investment in India. The authors
conducted a literature review of previous studies on this topic to identify the
key factors that affect investor perception of real estate investment.
The authors found that several factors influence investor perception towards
real estate investment in India. These factors include economic conditions,
market dynamics, government policies, demographic factors, and
psychological factors. The study found that economic conditions, such as
inflation, interest rates, and GDP growth, are critical factors that shape
investor perception towards real estate investment in India. Market dynamics,
such as supply and demand and price fluctuations, also affect investor
perception toward toward estate investment.
Government policies, such as tax laws and regulations, are another crucial
factor that influences investor perception toward real estate investment in
India. The study suggests that a favorable tax regime can attract more investors
to the real estate market.
Demographic factors, such as age, income, and education, play a significant
role in shaping investor perception of real estate investment in India. The
authors found that younger investors are more likely to invest in real estate
than older investors, and investors with higher income and education levels
have a more positive perception of real estate investment.
Psychological factors, such as risk perception and trust, also influence investor
perception towards real estate investment in India. The study found that
investors who perceive real estate investment as less risky are more likely to
invest in the market.
Overall, the study provides valuable insights into the factors that shape
investor perception towards real estate investment in India. The authors
suggest that policymakers and market participants should focus on creating a
favorable economic environment, promoting favorable government policies,
and developing investor education and awareness programs to improve
investor perception towards real estate investment in India.

Arunima Shukla and Shivangi Singh (2021): A Review of Literature" by

Arunima Shukla and Shivangi Singh examines the factors that shape investor
perception towards real estate investment in India. The authors conducted a
literature review of previous studies on this topic to identify the key factors
that affect investor perception of real estate investment.
The study found that several factors influence investor perception towards real
estate investment in India, including economic conditions, government
policies, market dynamics, demographic factors, and psychological factors.
The authors found that economic conditions, such as inflation, interest rates,
and GDP growth, are critical factors that shape investor perception towards
real estate investment in India. A favorable economic environment, with stable
inflation and interest rates, is likely to attract more investors to the real estate
market.
Government policies, such as tax laws and regulations, are another crucial
factor that influences investor perception toward real estate investment in
India. The study suggests that a favorable tax regime can attract more investors
to the real estate market.
Market dynamics, such as supply and demand and price fluctuations, also
affect investor perception toward real estate investment in India. The authors
found that investors tend to have a positive perception of real estate investment
in markets with high demand and low supply.
Demographic factors, such as age, income, and education, play a significant
role in shaping investor perception of real estate investment in India. The study
found that younger investors are more likely to invest in real estate than older
investors, and investors with higher income and education levels have a more
positive perception of real estate investment.
Psychological factors, such as risk perception and trust, also influence investor
perception towards real estate investment in India. The study found that
investors who perceive real estate investment as less risky are more likely to
invest in the market.
Overall, the study provides valuable insights into the factors that shape
investor perception towards real estate investment in India. The authors
suggest that policymakers and market participants should focus on creating a
favorable economic environment, promoting favorable government policies,
and developing investor education and awareness programs to improve
investor perception towards real estate investment in India.

A. Jayakumar and R. Prabakaran (2018): the factors that influence investor

perception towards real estate investment in India. The authors conducted a
literature review of previous studies on this topic to identify the key factors
that affect investor perception towards real estate investment.
The study found that several factors influence investor perception towards real
estate investment in India, including economic conditions, market dynamics,
government policies, demographic factors, and psychological factors. The
authors found that economic conditions, such as inflation, interest rates, and
GDP growth, are critical factors that shape investor perception towards real
estate investment in India. A stable economic environment with low inflation
and interest rates is likely to attract more investors to the real estate market.
Market dynamics, such as supply and demand and price fluctuations, also
affect investor perception towards real estate investment in India. The authors
found that investors tend to have a positive perception towards real estate
investment in markets with high demand and low supply.
Government policies, such as tax laws and regulations, are another crucial
factor that influences investor perception towards real estate investment in
India. The study suggests that a favorable tax regime can attract more investors
to the real estate market.
Demographic factors, such as age, income, and education, play a significant
role in shaping investor perception towards real estate investment in India. The
authors found that younger investors are more likely to invest in real estate
than older investors, and investors with higher income and education levels
have a more positive perception towards real estate investment.
Psychological factors, such as risk perception and trust, also influence investor
perception towards real estate investment in India. The study found that
investors who perceive real estate investment as less risky are more likely to
invest in the market.
Overall, the study provides valuable insights into the factors that shape
investor perception towards real estate investment in India. The authors
suggest that policymakers and market participants should focus on creating a
stable economic environment, promoting favorable government policies, and
developing investor education and awareness programs to improve investor
perception towards real estate investment in India.
Shilpi Shukla and Saurabh Srivastava (2019): An Overview" by Shilpi
Shukla and Saurabh Srivastava examines the investor perception towards real
estate investment in India. The authors conducted a literature review of
previous studies on this topic to identify the key factors that affect investor
perception of real estate investment.
The study found that several factors influence investor perception towards real
estate investment in India, including economic conditions, market dynamics,
government policies, demographic factors, and psychological factors. The
authors found that economic conditions, such as inflation, interest rates, and
GDP growth, are critical factors that shape investor perception towards real
estate investment in India. A stable economic environment with low inflation
and interest rates is likely to attract more investors to the real estate market.
Market dynamics, such as supply and demand and price fluctuations, also
affect investor perception towards real estate investment in India. The authors
found that investors tend to have a positive perception towards real estate
investment in markets with high demand and low supply.
Government policies, such as tax laws and regulations, are another crucial
factor that influences investor perception towards real estate investment in
India. The study suggests that a favorable tax regime can attract more investors
to the real estate market.
Demographic factors, such as age, income, and education, play a significant
role in shaping investor perception towards real estate investment in India. The
authors found that younger investors are more likely to invest in real estate
than older investors, and investors with higher income and education levels
have a more positive perception towards real estate investment.
Psychological factors, such as risk perception and trust, also influence investor
perception towards real estate investment in India. The study found that
investors who perceive real estate investment as less risky are more likely to
invest in the market.
Overall, the study provides valuable insights into the factors that shape
investor perception towards real estate investment in India. The authors
suggest that policymakers and market participants should focus on creating a
stable economic environment, promoting favorable government policies, and
developing investor education and awareness programs to improve investor
perception towards real estate investment in India

Akash Kumar and Naveen Kumar (2019): A Literature Review" by Akash

Kumar and Naveen Kumar examines the investor perception towards real
estate investment in India. The authors conducted a literature review of
previous studies on this topic to identify the key factors that affect investor
perception of real estate investment.
The study found that several factors influence investor perception towards real
estate investment in India, including economic conditions, market dynamics,
government policies, demographic factors, and psychological factors. The
authors found that economic conditions, such as inflation, interest rates, and
GDP growth, are critical factors that shape investor perception towards real
estate investment in India. A stable economic environment with low inflation
and interest rates is likely to attract more investors to the real estate market.
Market dynamics, such as supply and demand and price fluctuations, also
affect investor perception toward real estate investment in India. The authors
found that investors tend to have a positive perception of real estate investment
in markets with high demand and low supply.
Government policies, such as tax laws and regulations, are another crucial
factor that influences investor perception toward real estate investment in
India. The study suggests that a favorable tax regime can attract more investors
to the real estate market.
Demographic factors, such as age, income, and education, play a significant
role in shaping investor perception of real estate investment in India. The
authors found that younger investors are more likely to invest in real estate
than older investors, and investors with higher income and education levels
have a more positive perception of real estate investment.
Psychological factors, such as risk perception and trust, also influence investor
perception towards real estate investment in India. The study found that
investors who perceive real estate investment as less risky are more likely to
invest in the market.
Overall, the study provides valuable insights into the factors that shape
investor perception towards real estate investment in India. The authors
suggest that policymakers and market participants should focus on creating a
stable economic environment, promoting favorable government policies, and
developing investor education and awareness programs to improve investor
perception towards real estate investment in India.

Supriya Kaur and Prabhakar Sharma (2018): A Literature Review on

Investor Perception towards Real Estate Investment in India" by Supriya Kaur
and Prabhakar Sharma aims to review the existing literature on the topic and
identify the key factors that influence investor perception towards real estate
investment in India.
The authors conducted a comprehensive literature review of previous studies
on this topic and found that several factors affect investor perception of real
estate investment in India. The study identified four major factors that
influence investor perception, namely economic factors, government policies,
market dynamics, and psychological factors.
Economic factors such as inflation, interest rates, and GDP growth
significantly affect investor perception toward real estate investment in India.
A stable economic environment with low inflation and interest rates is likely to
attract more investors to the real estate market.
Government policies and regulations related to real estate investment also play
a crucial role in shaping investor perception. A favorable tax regime, relaxed
FDI norms, and transparent regulatory frameworks can improve investor
perception towards real estate investment in India.
Market dynamics such as supply and demand and price fluctuations also affect
investor perception towards real estate investment in India. The authors found
that investors tend to have a positive perception towards real estate investment
in markets with high demand and low supply.
Psychological factors such as risk perception, trust, and awareness also
influence investor perception towards real estate investment in India. The
study suggests that investors who perceive real estate investment as less risky
are more likely to invest in the market.
Overall, the study provides a valuable review of the existing literature on the
topic and highlights the key factors that influence investor perception towards
real estate investment in India. The authors suggest that policymakers and
market participants should focus on creating a stable economic environment,
promoting favorable government policies, and developing investor education
and awareness programs to improve investor perception towards real estate
investment in India.

Arpit Kumar Singh and Hiral Rana (2018): A Literature Review of Investor
Perception and Valuation" by Arpit Kumar Singh and Hiral Rana aims to
review the existing literature on investor perception and valuation of Real
Estate Investment Trusts (REITs) in India.
The authors conducted a comprehensive literature review of previous studies
on this topic and found that REITs are gaining popularity among investors in
India due to their potential benefits such as high yield, diversification, and
liquidity.
The study identified several factors that affect investor perception and
valuation of REITs in India. The authors found that factors such as quality of
assets, management, financial performance, and market conditions
significantly influence investor perception and valuation of REITs.
The study also highlights the importance of investor education and awareness
programs to improve investor perception and valuation of REITs in India. The
authors suggest that investors who have a better understanding of the REIT
market are more likely to make informed investment decisions and achieve
better returns.
The authors conclude that REITs have the potential to become a major asset
class in India's real estate market, and the development of the REIT market
could significantly improve investor perception and valuation of real estate
investment in India.
Overall, the study provides a valuable review of the existing literature on
investor perception and valuation of REITs in India and highlights the
importance of investor education and awareness programs to improve the
performance of the REIT market in India.

Ajay Kumar and Rajesh Kumar (2020): A Review of Literature" by Ajay

Kumar and Rajesh Kumar aims to review the existing literature on investor
perception towards real estate investment in India.
The authors conducted a comprehensive literature review of previous studies
on this topic and identified several factors that influence investor perception
towards real estate investment in India. These factors include economic
factors, government policies and regulations, market dynamics, and
psychological factors.
The study found that economic factors such as GDP growth, interest rates, and
inflation significantly affect investor perception towards real estate investment
in India. The authors suggest that a stable economic environment with low
inflation and interest rates is likely to attract more investors to the real estate
market.
The study also highlights the importance of government policies and
regulations related to real estate investment in shaping investor perception
towards the market. The authors suggest that favorable tax regimes,
transparent regulatory frameworks, and relaxed FDI norms can improve
investor perception towards real estate investment in India.n
Market dynamics such as supply and demand and price fluctuations also play a
crucial role in shaping investor perception towards real estate investment in
India. The study found that investors tend to have a positive perception of real
estate investment in markets with high demand and low supply.
Psychological factors such as risk perception and trust also influence investor
perception towards real estate investment in India. The study suggests that
investors who perceive real estate investment as less risky and have trust in the
market are more likely to invest in it.
Overall, the study provides a valuable review of the existing literature on
investor perception of real estate investment in India and highlights the key
factors that influence it. The authors suggest that policymakers and market
participants should focus on creating a stable economic environment,
promoting favorable government policies, and developing investor education
and awareness programs to improve investor perception towards real estate
investment in India.

Abhinav Goyal and Nidhi Gupta: An Empirical Study with Reference to India"
by Abhinav Goyal and Nidhi Gupta was published in the International Journal
of Latest Technology in Engineering, Management & Applied Science in
2016. The study aims to investigate the factors that affect the perception of
individual investors towards real estate investment in India. It focuses on a
sample of 150 investors from the National Capital Region (NCR) of India and
uses a survey-based approach to collect data. The study finds that investors
consider factors such as location, brand name, and reputation of the builder,
rental yield, and resale value while investing in real estate. It also highlights
the need for greater transparency and regulation in the Indian real estate
market to boost investor confidence.
The study also explores the relationship between investor perception and
demographic variables such as age, income, education, and occupation. It finds
that younger investors tend to have a higher perception of real estate as an
investment option, while investors with higher education and income levels are
more likely to consider real estate as a part of their investment portfolio.
Moreover, the study highlights the role of technology in shaping investor
perception towards real estate investment. It notes that the increasing
 availability of online real estate portals and other digital resources has made it
easier for investors to access information and evaluate investment
opportunities. This has led to greater transparency in the market and
has enabled investors to make more informed investment
decisions.

The study also sheds light on the challenges faced by the Indian real estate market,
such as delays in project delivery, lack of standardization in project approvals, and
fluctuating property prices. It suggests that these issues need to be addressed
through policy reforms and increased industry collaboration to create a more
favorable investment climate for investors.

Overall, the study provides valuable insights into the factors that shape investor
perception towards real estate investment in India. It underscores the importance of
transparency, regulation, and technology in boosting investor confidence and
fostering long-term growth in the Indian real estate market.