The Impact of Personal Religiosity on Individuals’ Investment Decisions

Abstract

This study has investigated the impact of personal religiosity on individuals' decision on real estate investment opportunities in Pakistan. The Islamic religiosity has been operationalized into its four determinants including religious knowhow, current religious issues, sensitive input for goods and services, and Islamic financial instruments. Primary data has been collected from the individual real estate investors in Pakistan capital city, Islamabad. Analysis of the data reveals that religious knowhow negatively impacts the investing decisions, knowledge of current religious issues and views about the Islamic financial instruments impact the investing decision positively. While opinion about sensitivity of the inputs into to goods and services does not impact the investing decisions. The stakeholders including the investors, developers, and the regulators in the real estate sector are recommended to allow due weightage to the elements of religiosity while investing, developing, and regulating real estate investments.