| dc.description.abstract | Real estate market has been used as a vehicle towards economic development. Performance
of real estate is triggered by growth in population as there is adequate demand thus real estate
participants provide housing units through mortgage financing. The housing sector require
mortgage financing which entails monthly repayment, initial payment, long maturity and
constant increase in prices of properties. The objective of the study was to establish the effect
of mortgage financing on performance of real estate market in Kenya.
The study considered a population of 19,177 outstanding mortgage loans drawn from 35
mortgage and financial institutions. The study employed stratified sampling techniques to
draw a sample size of 392 respondents. Structured questionnaires and interviews were used as
instruments of data collection to gather primary data from the respondents. Analyzed data
was presented inform of tables, pie charts, percentages and bar graphs. SPSS Version 17.0
and advanced MS Excel were used to analyze quantitative data. Multiple regression analysis
model was used to establish the effect of mortgage financing on performance of real estate
market in Kenya.
The study revealed that positive relationship exists between mortgage financing and
performance of real estate market in Kenya. Homeowners invest in real estate property in
anticipation of future increase in prices and rental income. Financial institutions provide
adequate information to potential homeowners thus there is flow of information hence
reduction in cases of moral hazards and adverse selection. To boost performance of real
estate market in Kenya, the government has introduced RIETs, private public partnership,
introduction of pension funds to be used as security to access the mortgage market. | en_US |
