Predictors of investment intention in real estate: Extending the theory of planned behavior

This paper explores the factors affecting the investment intention of individual real estate investors utilizing the extended theory of planned behavior. With the help of self-administered questionnaire, data from 366 individual investors from India was collected. This data was analysed using two-step structural equation modelling. While significant direct effect of attitude, external influence, financial self-efficacy and perceived financial return was found, interpersonal influence, perceived financial risk, facilitating conditions and financial awareness had no significant direct impact on investment intention. Upon checking the mediating effect of attitude on the factors, all factors influenced investment intention through attitude except facilitating condition and financial awareness. It was also observed that attitude stands out as the most important aspect due to strongest influence on intention directly and also providing mediation to all variables except two. The study guides policymakers and investment institutions to develop strategies and utilize resources in a direction that can bring out a positive outcome by strengthening real estate investors’ investment intentions. It brings out the fact that financial confidence should be boosted by enabling investors to handle and manage their finances which can bring in a positive attitude for investing.