Deep, S; Vishnoi, S; Malhotra, R; Mathur, S; Yawale, H; Kumar, A and Singla, A (2025) Influence of augmented reality and virtual reality on real estate investment decisions: Understand consumer perspective in Indian AEC industry. Engineering, Construction and Architectural Management, 32(2), pp. 1122-1140. ISSN 0969-9988
Abstract
Purpose: Augmented Reality (AR) and Virtual Reality (VR) technologies possess the potential to transform the scenario of making real estate investment decisions through the immersive experience they offer. From the literature it was observed that the research in this domain is still emergent and there is a need to identify the latent variables that influence real estate investment decisions. Therefore, by examining the effects of these technologies on investment decision-making, the purpose of the study is to provide valuable insights into how AR and VR could be applied to enhance customers' property buying experiences and assist in their decision-making process. Design/methodology/approach: From an extensive review of the literature four latent variables and their measure were identified, and based on these a survey instrument was developed. The survey was distributed online and received 300 responses from the respondents including home buyers, developers, AEC professionals and real estate agents. To validate the latent variables exploratory factor analysis was used whereas to establish their criticality second-order confirmatory factor analysis was used. Findings: From the results, the four latent constructs were identified based on standard factor loadings (SFL) that is Confident Value Perception (CVP, SFL = 0.70), Innovative Investment Appeal (IIA, SFL = 0.60), Trusted Property Transactions (TPT, SFL = 0.58) and Effortless Property Engagement (EPE, SFL = 0.54), that significantly influence investor decision-making and property purchase experience. Originality/value: This study contributes to the literature on real estate investment decisions by providing empirical evidence on the role of AR and VR technologies. The identified key variables provided practical guidelines for developers, investors and policymakers in understanding and leveraging the potential of AR and VR technologies in the real estate industry.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | augmented reality; construction projects; innovative technologies; real investment decisions; virtual reality; questionnaire survey |
| Index terms: | loading, investment decision, real estate, virtual reality, decision-making process, investment decision-making, investor, agent, construction project, methodology, decision-making, evidence, questionnaire, augmented reality, confirmatory factor analysis, survey, real estate investment, exploratory factor analysis |
| Subjects: | economic analysis, construction operations, visualization, practitioner, evaluation and assessment methods, cognitive psychology, production management, research methods, real estate economics, virtual reality, data collection methods, statistical analysis, sociology, decision analysis |
| Topics: | Site Management, Digital Applications, Urban Studies, Stakeholder Management, Roles and Professions, Research Practice, Business Strategy, Procurement, Risk Management, Project Management |
| Descriptive scope: | 5 PCTEA |
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