| dc.description.abstract | The real estate industry plays a very important role in the economy. The industry has increasingly attracted the attention of investors in the recent past. Kenya’s real estate industry is expected to remain strong in coming years. This has not been the case and thus this study sought to establish the effects of macroeconomic variables on the performance of real estate industry in Kenya given they are key in the growth of the country’s economy. The study was carried out through a descriptive research design. The measure performance of the real estate industry was measured against the macroeconomic variables such as inflation rate, exchange rates, interest rate, Diaspora remittances and real GDP growth. Data for a period of 15 years from 2000 to 2014 was collected from publication in Hassconsult, CBK and KNBS. The study used multiple regression and correlation analysis research design. The study employed annual secondary data which was for a period of 15years 2000 to 2014. The data was analyzed using SPSS version 20. The findings are important to various investors in the real estate industry and finance students etc. Gross domestic product, inflation, Diaspora remittances, and banks lending interest rates in that respective order established to be the macroeconomic factor that had the greatest positive effect on real estate industry performance, while exchange rate of the dollar against Kenya shilling showed a negative relationship albeit to a small extent, hence, these macro economic variables should be carefully be considered by all investors in the real estate industry. Therefore this study proves credence and confirms the researchers’ theory that the performance of real estate industry is affected by fundamental macroeconomic factors such as GDP, inflation, exchange rate, interest lending rates and Diaspora remittances. In summary therefore mentioned macroeconomic should closely monitored and taken to account by real estate industry managers since they have an effect on the overall performance of the industry | en_US |
