| dc.description.abstract | The real estate market plays a very important role in any economy. It is known to
have a dramatic multiplier effect and is a key economic indicator. The real estate
market has experienced significant growth in the last decade with many countries
experiencing house price fluctuations. The Kenyan real estate market has been
experiencing a boom in the past ten years and the latest findings have shown that the
trend will continue into the foreseeable future. To ensure the economy is proper
positioned a study into the forces that contribute to value of real estate supplied is
paramount. This study investigates the effects on macroeconomic variables on effect
value of real estate supply in Kenya. Monthly secondary data for a period of five
years spanning from 2009 to 2013 was collected from publications in government and
real estate industry. Descriptive as well as multiple regressions were run using SPSS
version 21.0. A multivariate regression model showing the relationship between
residential real estate prices and various variables was tested. The variables are
Inflation rate, GDP rate, Employment growth rate, Population Growth rate, Cost of
Construction and Percentage of debt financing. The results show that there were
positive relationships with GDP and value of real estates supplied, being the most
significant, followed by Inflation, Cost of construction and Percentage of debt
financing. Data on Population growth rate and Employment rates were constant and
their relationship could therefore not be established. Value of real estate supply has
shown an upward trend with time hence the real estate market in Kenya is expected to
continue to grow. Even without significant changes in the variables, the effect of time
is that value of real estate supply continued to grow. This also indicates that the real
estate market is significantly stable and will continue to impact greatly of the
economic growth of the country | en_US |
