| dc.description.abstract | The study was geared towards finding the relationship between interest rates and real
estates’ development cost in Mombasa County. It was guided by two specific research
objectives; to determine the relationship between interest rates and real estate
development cost in Mombasa County and to establish the other factors that influence
the real estate development cost. The study adopted a census survey research design.
The population consisted of 10 real estate developers picked using thebiased sampling
technique. Data was both primaryand secondary, primary data was collected using
questionnaires which contained both open-end and close-end questions while
Secondary data was collected from government sources. Collected data was coded
and analyzed using SPSS, through regression analysis. Tables, percentages and
frequencies were used to present the findings. The results inferred the existence of a
weak positive relationship between interest rates and real estate development costs in
Mombasa County. Other factors were also found to affect the real estate development
costs these are Insecurity, Valuation Fundamentals, Discount Rate, Capital Flows,
Land Prices, Property Income Tax and Inflation. The study concludes that investors
factor in the interest rates when pricing the real estate units therefore buyers need to
be aware of the interest rates and real estate dynamics. In addition the study concludes
that there is need for the county government of Mombasa to work with the national
government to address the insecurity issue and need for regulation in pricing of land
and property valuation. The study further recommends that the incorporation of
cheaper building technologies could help lower the cost of developing real estate units
which can be achieved through trade symposia and the County Government creating
an investor friendly climate to woo more investors into the county and thereby the real
estate industry. | en_US |
