Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property Investors
This study explored the key considerations of commercial property investors acting under conditions of economic uncertainty across the following three dimensions: market fundamentals, institutional, and behavioural factors. Over the past few decades, a series of exogenous shocks to the global econom...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-10-01
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| Series: | Buildings |
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| Online Access: | https://www.mdpi.com/2075-5309/14/10/3315 |
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| author | Albert Agbeko Ahiadu Rotimi Boluwatife Abidoye Tak Wing Yiu |
| author_facet | Albert Agbeko Ahiadu Rotimi Boluwatife Abidoye Tak Wing Yiu |
| author_sort | Albert Agbeko Ahiadu |
| collection | DOAJ |
| description | This study explored the key considerations of commercial property investors acting under conditions of economic uncertainty across the following three dimensions: market fundamentals, institutional, and behavioural factors. Over the past few decades, a series of exogenous shocks to the global economy has impacted property performance, investment volumes, and investor perceptions. Acknowledging that uncertainty further complicates investment decision-making, a mixed-methods research approach was adopted to examine the perspectives of 5 experts and 412 property investors. The findings revealed that, while most investors express negative responses to uncertainty and adopt more cautious attitudes, others are more aggressive and attempt to capitalise on emerging opportunities. Market fundamentals are not the only key consideration; access to information and investors’ behaviour all impact how decisions are made under these conditions. In particular, wealthy and more experienced investors make more comprehensive decisions, considering all three dimensions, while aggressive investors may disregard data in favour of intuition. Behavioural biases such as the bandwagon effect and fear of missing out (FOMO) all influence decisions and are sometimes exacerbated by media narratives. Practically, these considerations underscore the complexity of decision-making under conditions of uncertainty and how different investors attempt to navigate market volatility. |
| format | Article |
| id | doaj-art-af785fe2d5864e158a86f0b632e57a85 |
| institution | OA Journals |
| issn | 2075-5309 |
| language | English |
| publishDate | 2024-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Buildings |
| spelling | doaj-art-af785fe2d5864e158a86f0b632e57a852025-08-20T02:11:09ZengMDPI AGBuildings2075-53092024-10-011410331510.3390/buildings14103315Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property InvestorsAlbert Agbeko Ahiadu0Rotimi Boluwatife Abidoye1Tak Wing Yiu2School of Built Environment, University of New South Wales, Sydney 2033, AustraliaSchool of Built Environment, University of New South Wales, Sydney 2033, AustraliaSchool of Built Environment, University of New South Wales, Sydney 2033, AustraliaThis study explored the key considerations of commercial property investors acting under conditions of economic uncertainty across the following three dimensions: market fundamentals, institutional, and behavioural factors. Over the past few decades, a series of exogenous shocks to the global economy has impacted property performance, investment volumes, and investor perceptions. Acknowledging that uncertainty further complicates investment decision-making, a mixed-methods research approach was adopted to examine the perspectives of 5 experts and 412 property investors. The findings revealed that, while most investors express negative responses to uncertainty and adopt more cautious attitudes, others are more aggressive and attempt to capitalise on emerging opportunities. Market fundamentals are not the only key consideration; access to information and investors’ behaviour all impact how decisions are made under these conditions. In particular, wealthy and more experienced investors make more comprehensive decisions, considering all three dimensions, while aggressive investors may disregard data in favour of intuition. Behavioural biases such as the bandwagon effect and fear of missing out (FOMO) all influence decisions and are sometimes exacerbated by media narratives. Practically, these considerations underscore the complexity of decision-making under conditions of uncertainty and how different investors attempt to navigate market volatility.https://www.mdpi.com/2075-5309/14/10/3315commercial propertyproperty investmenteconomic uncertaintyperceived uncertaintydecision-makingAustralia |
| spellingShingle | Albert Agbeko Ahiadu Rotimi Boluwatife Abidoye Tak Wing Yiu Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property Investors Buildings commercial property property investment economic uncertainty perceived uncertainty decision-making Australia |
| title | Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property Investors |
| title_full | Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property Investors |
| title_fullStr | Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property Investors |
| title_full_unstemmed | Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property Investors |
| title_short | Decision-Making Amid Economic Uncertainty: Exploring the Key Considerations of Commercial Property Investors |
| title_sort | decision making amid economic uncertainty exploring the key considerations of commercial property investors |
| topic | commercial property property investment economic uncertainty perceived uncertainty decision-making Australia |
| url | https://www.mdpi.com/2075-5309/14/10/3315 |
| work_keys_str_mv | AT albertagbekoahiadu decisionmakingamideconomicuncertaintyexploringthekeyconsiderationsofcommercialpropertyinvestors AT rotimiboluwatifeabidoye decisionmakingamideconomicuncertaintyexploringthekeyconsiderationsofcommercialpropertyinvestors AT takwingyiu decisionmakingamideconomicuncertaintyexploringthekeyconsiderationsofcommercialpropertyinvestors |