scholarly journals Bringing the User Back in the Building: An Analysis of ESG in Real Estate and a Behavioral Framework to Guide Future Research

2021 ◽  
Vol 13 (6) ◽  
pp. 3239
Author(s):  
Shirley Kempeneer ◽  
Michaël Peeters ◽  
Tine Compernolle
Keyword(s):  
Real Estate ◽  
Social Science ◽  
Environmental Psychology ◽  
Fiduciary Duty ◽  
Future Research ◽  
The Real Estate ◽  
Investment Value ◽  
Real Estate Sector ◽  
Sustainable Investments

Investors are currently obliged to take environment, social, and governance (ESG) issues into consideration as part of their fiduciary duty. As such, it becomes increasingly important to identify sustainable investments that also hold financial value. A sector where this is especially underdeveloped is real estate. This has a lot to do with the obfuscated conceptualization of ESG. The article identifies key gaps in the literature and practice and provides a framework to further the understanding of how ESG factors can add societal and financial value in the real estate sector. A key premise of the article is that the user in the building is grossly overlooked. Drawing on insights from behavioral social science and environmental psychology, the paper explains the role of the user in improving buildings’ ESG, also taking into account the investment value. To conclude, the article makes the case that the transition to user-centered smart real estate is the solution to improving both the environmental (E) and social (S) sustainability of buildings, as well as their investment value. Therefore, practitioners and academics are encouraged to critically evaluate and contextualize the ESG framework they are using as well as the extent to which users are considered and smart technology is employed.

scholarly journals Bringing the User Back in the Building: An Analysis of ESG in Real Estate and a Framework to Guide Future Research

2021 ◽  
Author(s):  
Shirley Kempeneer ◽  
Michaël Peeters ◽  
Tine Compernolle
Keyword(s):  
Real Estate ◽  
Environmental Psychology ◽  
Fiduciary Duty ◽  
Future Research ◽  
The Real Estate ◽  
Social Governance ◽  
Investment Value ◽  
Real Estate Sector ◽  
Sustainable Investments

Investors are currently obliged to take ESG (Environment, Social, Governance) issues into consideration as part of their fiduciary duty. As such, it becomes increasingly important to identify sustainable investments that hold financial value as well. A sector where this is especially underdeveloped is real estate. This has a lot to do with the obfuscated conceptualization of ESG. The article identifies key gaps in literature and practice, and provides a framework to further the understanding of how ESG factors can add societal and financial value in the real estate sector. A key premise of the article is that the user in the building is grossly overlooked. Drawing on insights from behavioral social science and environmental psychology, the paper explains the role of the user in improving buildings’ ESG, also taking into account the investment value. To conclude, the article makes the case that the transition to user-centered smart real estate is the solution to improving both the environmental (E) and social (S) sustainability of buildings, as well as their investment value. Therefore, practitioners and academics are encouraged to critically evaluate and contextualize the ESG framework they are using, as well as the extent to which users are considered and smart technology is employed.

iSpace: principles for a phenomenology of space user in smart real estate

2019 ◽  
Vol 38 (4) ◽  
pp. 271-290
Author(s):  
Patrick Lecomte
Keyword(s):  
Real Estate ◽  
Smart Cities ◽  
Hedonic Pricing ◽  
Future Research ◽  
Smart Environments ◽  
Content Type ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Smart Technologies ◽  
The Impact

Purpose As smart technologies become an integral part of real estate in smart cities, the purpose of this paper is to explore the impact of ubiquitous computing on space users in smart real estate. Design/methodology/approach The analysis builds on two fields of knowledge rarely referenced in real estate studies: computer sciences and social sciences. The paper starts by analysing the idiosyncrasies of a new type of space user in smart real estate, known as the Cyber-dasein in reference to Heidegger’s phenomenology. The Cyber-dasein serves as an archetypical space user in smart environments. Findings The paper introduces digital-time as a new realm of real estate, and discusses the use of “experienced utility” in hedonic pricing models of smart real estate. It concludes by advocating a multidisciplinary collaborative approach for future research on real estate in smart environments. Practical implications There is a need for the real estate sector to decide on a metric for the new digital dimension of real estate owing to the implementation of smart technologies in the built environment. Originality/value This is the first research paper on this important topic. It is totally original and new.

scholarly journals Effect of Regret Aversion and Information Cascade on Investment Decisions in the Real Estate Sector: The Mediating Role of Risk Perception and the Moderating Effect of Financial Literacy

2021 ◽  
Vol 12 ◽  
Author(s):  
Kaixin Wangzhou ◽  
Mahnoor Khan ◽  
Sajjad Hussain ◽  
Muhammad Ishfaq ◽  
Rabia Farooqi
Keyword(s):  
Risk Perception ◽  
Real Estate ◽  
Financial Literacy ◽  
Investment Decisions ◽  
Information Cascade ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Regret Aversion

The real estate sector plays a significant role in the economy of any country. However, many investors make irrational investments in the real estate market. Therefore, the purpose of this study is to assess the effects of regret aversion and information cascade on investment decisions while considering the moderating role of financial literacy and the mediating effect of risk perception in the real estate sector of developing countries. This research utilized a quantitative research technique, collecting data by distributing structured questionnaires to real estate investors, followed by convenience sampling. This study used both descriptive and inferential statistics to make the data more meaningful. SPSS 25.0 was utilized to interpret the data. Cronbach's alpha was used to test for internal consistency, while validity was checked through correlation. Confirmatory factor analysis (CFA) was applied to confirm that the items on the questionnaire are perfectly loaded on their construct. Furthermore, process macro, model 5, was used to investigate the moderation mediation. This work addresses a gap in the literature by studying financial literacy as a moderator and risk perception as a mediating variable in regret aversion bias and information cascade bias's relationships with investment decisions in the real estate sector. The results confirmed that financial literacy weakens the negative effect of behavioral biases (regret aversion and information cascade) on investment decisions. In addition, risk perception mediates the relationships between these cognitive biases (regret aversion and information cascade) and decision making. The effects of other behavioral biases in real estate and stock market contexts should be examined in future research.

scholarly journals A LINKAGE MEASURE FRAMEWORK FOR THE REAL ESTATE SECTOR

2005 ◽  
Vol 9 (3) ◽  
pp. 121-143 ◽  
Author(s):  
Yu Song ◽  
Chunlu Liu ◽  
Craig Langston
Keyword(s):  
Real Estate ◽  
Business Strategies ◽  
The Real ◽  
The Real Estate ◽  
Real Estate Sector ◽  
Increasing Trend ◽  
Comprehensive Framework ◽  
Sectoral Linkages ◽  
Constant Prices

Linkage is one of the most important factors for gaining competitive advantage. Information on linkages is essential to understanding the structure of an economy, which is in turn important in formulating industry policies and business strategies. The hypothetical extraction method is used to measure the linkages by extracting a sector hypothetically from an economic system in the literature. In the previous research, however, the internal linkage (linkage within a sector) and sectoral linkages (linkage between two specific sectors) are ignored, and there is not a comprehensive framework to measure the linkages of a specific sector. Using the recently published Organisation for Economic Co‐operation and Development input‐output database at constant prices, this paper aims to resolve these two shortcomings and thereby propose a linkage measure framework to explore the linkages between the real estate sector and other sectors from a new angle. The relative and absolute linkages are termed and the total, backward, forward, internal and sectoral linkage indicators are formulated to investigate the linkages of the real estate sector from all directions. Empirical results show an increasing trend of these linkages, which confirms the increasing role of the real estate sector with economic maturity over the examined period. This framework also can be employed in other sectors.

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