The essence of investment decisions in real estate

The purpose of this article is to examine the essence of investment decisions in real estate by integrating theoretical foundations with behavioural factors. The relevance of the research is driven by the growing complexity of investment decision-making under conditions of information asymmetry, heterogeneous market participants, and the institutional specifics of emerging economies. The paper analyses classical financial indicators (NPV, IRR, PI, ROR) and highlights their limitations when behavioural biases are not considered. Using the VIKOR method with probabilistic linguistic term sets, the study demonstrates that changes in behavioural preferences may lead to a 2–4-fold shift in the evaluation of investment alternatives.