Influence Of Economic Growth On The Performance Of Real Estate Investment Industry In Machakos Kenya

Abstract

The abstract of this research focused on real estate industry which plays a key task in our economy. In this industry has past the years attracted many investors who contribute largely on its growth. This has not been the case and thus this study sought to investigate how economic growth indicators influence the growth of Machakos County real estate results. In addition to that the study used a causal research design seeks to uncover the reason behind the current state of phenomenon. The population of this study consisted of real estate firm, Machakos county government, private developer and Kenya Revenue Authority. The data collection for this study involved secondary data that was in both quantitative and qualitative analysis. Central Bank of Kenya, KNBS and other organization report also helped in collection of secondary data, which was a yearly report on the economic situation of the country. Qualitative data serene was encrypted, entered and summarised with the assistance of SPSS computer programme. Findings show that there are significant relationship between performance of real estate and the independent variables inflation, GDP, employment and foreign direct investment. All the variables have a positive effect which implies that any change in the variables results to a positive change of the real estate. The data sources were scattered and this made data mining to be a tedious process and the researcher could not conclude without modern experimentation. However, the study is in line with that done by Muli (2012) who concluded that GDP, interest and inflation rates were major determinants in real estate and Karoki (2013) whose study established significant relationships between residential real estate prices and interest rates, GDP and level of money supply. The study suggests that further readings should explore on the specific factors that affect each of the study variables. Also, further studies should be conducted to establish economic growth indicators influence the performance of real estate investment in other counties.