Real estate investors’ behaviour

• Published in: Qualitative research in financial markets 2021-06, Vol.13 (1), p.82-98
• Main Authors: Abdallah, Mohamad Hussein Ismail, Al-Tamimi, Hussein A. Hassan, Duqi, Andi
• Format: Article
• Language: English
• Subjects: Decision making; Economic crisis; Ethics; Financial performance; Hypotheses; Infrastructure; International finance; Investors; Literature reviews; Prospecti; Ratios; Real estate financing; Religion
• ISSN: 1755-4179; 1755-4187
• DOI: 10.1108/QRFM-06-2019-0071

Purpose This paper aims to investigate perceptions of United Arab Emirates (UAE) real estate investors’ behaviour and the factors that most influence their investment decisions. Design/methodology/approach This study used a modified questionnaire that was divided into two parts. The first part covered demographic and socioeconomic variables. The second part identified 36 factors that affect the perceptions of real estate investors in the UAE regarding their investment decisions. These factors were placed in eight different categories that correspond to non-personal factors such as, profit, market conditions, risk, transparency, credit facilities (loans), infrastructure and services. Findings The findings confirm that there is a significant and positive relationship between three factors; namely, profitability, risk and service quality regarding investments in the real estate sector. The findings also confirm a positive but statistically insignificant relationship between transparency, market conditions, credit facilities, infrastructure and investment in the UAE’s real estate sector. Research limitations/implications The sample size represents one of the limitations of this study. In addition, the gender of the sample is another limitation as, in general, men are more involved in investment than women are. Furthermore, there are no previous studies regarding the behaviour of UAE real estate investors; thus, the findings of this study cannot be directly compared with other empirical studies. Practical implications It might be helpful to create separate units under the name “Real Estate Information Unit” in every municipality of each of the seven emirates. In addition, it is recommended that decision makers should consider ensuring that modern high-quality real estate infrastructure is available to attract more investors. Finally, minimizing any restrictions on access financing facilities may encourage investors to invest more in the UAE real estate sector. Originality/value This study is the first of its kind to be conducted in the context of the behaviour of UAE real estate investors.