An Evaluation of Strategies Influencing Real Estate Developers’ Business Performance In Nairobi County, Kenya
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Date
2014-05
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School of Business and Economics, Daystar University
Abstract
Housing is a basic need that should be met after food and clothing. Despite this, developing countries have an acute housing shortage. This is seen in Kenya as well where there is an annual housing supply deficit of 150,000 houses and a supply of less than 30,000 houses annually. The houses supplied do not cater for the low end market and are not affordable by most. The purpose of this study was to establish the strategies used by real estate developers in the supply of housing and how these strategies influenced their business performance. Its objectives were to establish the strategies used by real estate developers, establish which of those strategies led to better performance and also the challenges experienced by the real estate developers. The study adopted a descriptive research design and targeted a population of 40 real estate developers who belonged to KPDA. A census approach was used to select all the 40 members of the target population to form the sample size. Questionnaires were used in data collection, which was analyzed using a statistical program called Stata. The findings revealed that differentiation strategy and innovation strategy were the top 2 strategies in use. The strategy that led to better performance for the Nairobi county real estate developers and had the highest impact was differentiation strategy and the use of Strategic Alliances. The main challenge highlighted in this study was high inflation and construction material costs. The other major challenge faced was high financing costs. The study concluded that the strategies used had an impact on performance of the estate developers. This study recommended a need for government intervention on land policy matters, improving infrastructure and better regulation of interest rates.
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Thesis
Keywords
Real Estate Developers, Business Performance, supply of housing
Citation
Kiarie, E (2014). An Evaluation Of Strategies Influencing Real Estate Developers’ Business Performance In Nairobi County, Kenya. School of Business and Economics, Daystar University: Thesis