What is Physical Design?
The process of converting a gate-level netlist (written using your Hardware Description Language(HDL)) into GDSII (Geometric Datastream) or physically realizable format(having geometric shapes) which finally becomes a hardware is called Physical Design.

Structural representation to physical implementation (ie.,) Netlist to GDS.

Consists of 2 stages:
Placement & Routing (P&R)
Signoff
Objectives:
Timing
Congestion
Area
Power
Possible issues seen:
Timing violation
Congestion Issues
Design rule violations