Behavioural Factors Influencing Investment Decisions in the Kenyan property market
Mwangi, Geoffrey Gitau
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This study applies Behavioral Finance theory to explain the performance of the property market in Kenya. The study investigates behavioral factors influencing investment decisions in the Kenyan property arena. This is aimed to better reflect the way property investors think and behave by using Behavioral Finance theory. The study uses survey questionnaire to collect data targeting all the real estate agents within Nairobi region who are listed in the yellow pages. The target population was 155 listed Estate Agents operating in Nairobi as per Kenya Pastel Directory 2010 Nairobi edition. This study found out that out of the two broad classifications of human cognitive illusions that are heuristics and prospect theory, heuristics influenced investors more. The key heuristic theory, that influence investors are anchoring, representativeness and availability bias.