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Influence of augmented reality and virtual reality on real estate investment decisions: understand consumer perspective in Indian AEC industry

Shumank Deep (Department of Operations and IT, Institute of Management Studies Ghaziabad, Ghaziabad, India)
Sushant Vishnoi (Institute of Management Studies Ghaziabad, Ghaziabad, India)
Radhika Malhotra (Institute of Management Studies Ghaziabad, Ghaziabad, India)
Smriti Mathur (Department of Marketing, Institute of Management Studies Ghaziabad, Ghaziabad, India)
Hrishikesh Yawale (RICS School of the Built Environment, Amity University, Mumbai, India)
Amit Kumar (College of Business, Abu Dhabi University, Abu Dhabi, United Arab Emirates)
Anju Singla (Punjab Engineering College (Deemed to be University), Chandigarh, India)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 12 September 2023

467

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.

Keywords

Acknowledgements

Since acceptance of this article, the following author(s) have updated their affiliation(s): Shumank Deep is at the Department of Civil Engineering, Institute of Technology Delhi, Delhi, India and Smriti Mathur is at the Christ University, Delhi NCR Campus, India.

Citation

Deep, S., Vishnoi, S., Malhotra, R., Mathur, S., Yawale, H., Kumar, A. and Singla, A. (2023), "Influence of augmented reality and virtual reality on real estate investment decisions: understand consumer perspective in Indian AEC industry", Engineering, Construction and Architectural Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/ECAM-04-2023-0327

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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