Factors Influencing Investment in The Real Estate and Their Effects on The Industry Performance: A Focus on Mombasa County
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Date
2013-06
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Publisher
Daystar University, School of Business and Economics
Abstract
Real estate investment contributes to growth of economy, yet capital access is a major challenge. The purpose of the study was to investigate factors influencing investment in the real estate industry and their effects on performance within the Mombasa County. Its objectives were to find out factors affecting investment in real estate industry in Mombasa County, find out the methods of financing the real estate investments, establish how various factors affect real estate industry performance and establish how real estate investors could be able to maintain future survival of their businesses. The study used the exploratory design and the population was managers and directors of real estates and property developers. Purposive sampling technique was used to select a sample size of 58 respondents. The study found that the factors affecting investment in real estate market were low level of income or disposable income problems to access funds, high and volatile level of inflation, high Margins charged by banks, availability of long term funds and mismatch between short term deposit and long term loan and stress of regulation. The study identified various methods investors used to finance their projects to include loans from a friend, family and from financial institutions, Sellers financing and Chamas. The study concluded that high margins charged by banks was major challenge in real estate investment business, followed by stress of strict regulation to get capital, then low disposable income. The researcher recommends that that the investors in the real estate industry should find alternative methods for financing their investments projects. That business investors should always study the market to be updated with the trend by visiting latest sources such as website stand firm in the management of business and family issues so as not to mix up the two.
Description
MASTER OF BUSINESS ADMINISTRATION in Finance
Keywords
Real estate investment, real estate industry, financing
Citation
Njeri, K. T. (2013). Factors Influencing Investment in The Real Estate and Their Effects on The Industry Performance: A Focus on Mombasa County. Daystar University, School of Business and Economics