Theses and Dissertations
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Item Role of Financing Options on the Growth of Real Estate in Kenya: A Survey of Real Estate Developers in Nairobi Metropolis(KCA University, 2016) Mungai, Daniel.K.Real estate business is an undertaking that has been perceived by many as a project that needs a lot of capital to initiate. In Kenya, investing in real estate hasn't been such a huge venture until the last 10 years. This research therefore aimed at establishing the perceived role of financing options on the growth of real estate in Kenya with a focus in Nairobi Metropolitan area. It is often difficult to fund big projects in real estate solely from personal savings. Therefore there is a need to use other sources of finance such as equity or self-financing, or mortgage from financial institutions like commercial banks, insurance companies and mortgage institutions or venture capital. This research paper was guided by four specific objectives; To assess influence of mortgage financing option on the growth of real estate in Nairobi Metropolis; To evaluate the effect of savings financing option on the growth of real estate in Nairobi Metropolis: To evaluate the effect of venture capital financing option on the growth of real estate in Nairobi Metropolis: To examine the influence of equity financing option on the growth of real estate in Nairobi Metropolis. This study used primary data collected from registered developers in Kenya with an interest in Nairobi Metropolis. The sample size was 81 out of a population of 100 developers registered with Kenya Property Developers Association. The study employed descriptive research design and data was analyzed through multiple regression analysis. This study found out that the variables addressed, only explain 7.1% of the growth of Real estate in Kenya. Other factors outside this research explain 92.9% of the growth in real estate. Due to the low explanation the researcher employed confirmatory factor analysis to determine model perfect of fit. The study found mortgage financing and equity financing the only two variables with a good fit. From this study, then there is a need for more research on those other factors that have spurred growth in real estate in Kenya. This study was carried out during the period May to August 2016.Item Effect Of Financing Sources On Performance Of Real Estate Sector In Nairobi County, Kenya(Kca University, 2018) Kamau, Samuel G.Real estate sector has gained a lot of interest from investors with the perceived high returns. Kenyan government has on the other hand recently capped interest rates on loans. Considering that most investors relied on mortgage financing to invest in real estate sector, the investors have to consider other sources of financing. Venture capital financing on the other hand has left some investors shortchanged by the venture capitalists. This study sought to establish the impact of financing sources on real estate sector’s performance in Nairobi County, Kenya. The specific objectives were: to investigate the effect of mortgage financing on the performance of the real estate sector in Nairobi County, Kenya; to determine the effect of venture capital financing on the performance of the real estate sector in Nairobi County, Kenya and to determine the effect of equity financing on the performance of real estate sector in Nairobi County, Kenya. The study reviewed theories relevant to financing sources and performance namely; pecking order theory, trade off theory and agency theory. Descriptive research design was adopted. The study population was 64 real estate developers registered with Kenya Property Developers Association in Nairobi County, Kenya. The study conducted a census of all 64 real estate developers. The study used primary data. Questionnaires were utilized to collect data. Data was analyzed by multiple linear regressions and presented in form of frequency tables and charts and proper inferences made towards the same. The study found out that performance of real estate sector in Nairobi County, Kenya was significantly affected by mortgage financing which was statistically significant with a p value of 0.001.The relationship between venture capital financing and performance of real estate sector in Nairobi County, Kenya was positive, however, the relationship was statistically insignificant with a p value of 0.526.The study also found out that even though the relationship between equity financing and performance of real estate sector in Nairobi County, Kenya was positive, the relationship was statistically insignificant with a p value of 0.472. The study concluded that performance of real estate sector in Nairobi County, Kenya was significantly affected by mortgage financing which was statistically significant. The study also concluded that venture capital financing insignificantly influenced performance of real estate sector in Nairobi County, Kenya. The study further concluded that the relationship between equity financing and performance of real estate sector in Nairobi County, Kenya was statistically insignificant. The research recommends that in order for the investors to maximize returns on their real estate investments, they should adopt strategies such as increasing mortgage financing up to an optimal point since it has the highest returns as compared to other financing sources. The research further recommends that to reduce risks associated with venture capital financing, investors should undertake some mitigation steps like assessing and evaluating potential investment targets regarding risk and return. Similarly, the research recommends that real estate companies should consider raising equity through private placements as opposed to public placements.