Evaluation of critical factors affecting pricing of real estate among low income people in Nairobi, Kenya
Date
2016
Authors
Amatete, Bryson Webuye
Journal Title
Journal ISSN
Volume Title
Publisher
Strathmore University
Abstract
Development, pricing and subsequent ownership of real estate in Kenya has been dynamic
and occasionally economically volatile while experiencing strong market forces driven by
factors such as demand, supply, fiscal environment, cost of land, cost of capital, and other
salient factors such as consumer tastes and preferences. However, it is one sector in which the
dominant players are the middle or high income earners. The majority of the low income
earners do not participate in the development, subsequent pricing, and acquisition or
ownership of real estate. This study sought to determine the critical factors that drive real
estate pricing and how these factors subsequently influence pricing of real estate among the
low-income earners in Kenya. The research applied exploratory research design and a causal
approach. The target population for this study was 509 respondents comprising of employees
and practitioners of the production group and the public infrastructure group. The study
adopted non-probability approach to sampling with purposive sampling as the selected
approach. This study used a stratified random sampling method to select 219 respondents.
Simple random sampling technique was used to select the sample from each stratum. The
study collected primary data from the sampled organisations and/or groups using structured
questionnaires. Descriptive statistics were used to analyze relevant data that was collected for
an exploratory study. Also inferential statistical methods such as factor analysis, correlation
analysis, chi square test and multivariate regression analysis were applied to analyze the data
and draw the relevant inferences with regard to the study. The study found that construction
cost, financial market dynamics, macroeconomic determinants and structural characteristics
were the major determinants of acquisition and ownership of real estate among the lowincome
earners
Description
Submitted in partial fulfillment of the requirements for the Degree of Mater of
Business Administration
Keywords
Real estate, Low income earners, Real estate pricing