Published Paper Details:

Decision-making is a psychological phenomenon. It includes cognitive processes and is hence affected by the psychology of humans. Biases are the influencers that influence human psychology; particularly in the finance domain, and result in either financial loss or gain. The real-estate market is an imperfect market, which change its nature from person to person and location to location. Purpose: This study is conducted to assess the influence of psychological factors (heuristic, Herding and prospect) on the investment decisions of real-estate investors. Design/ Methodology/Approach: In this research samples have been collected using the stratified random sampling method from individual investors using an instrument formed using a Likert scale and with the medium of personal survey. For analysis of data, SMART PLS 4 software is used. Findings: This research coincides with the previous researches on the theme that psychological behaviour influence investment decisions but heuristic and prospect has a significant influence; however herding does not significantly influence investment decision of the real-estate investors.