| dc.description.abstract | The real estate industry contributes 28% to Kenya's GDP. Studies show an average annual
growth rate of 16% in the country with that ofHoma Bay town being 3% indicating slow growth.
Prior studies on real estate indicate a possibility of financing sources influencing real estate
growth. However, the relationship between financing sources and real estate growth in Homa
Bay town is unknown. Specific studies focusing on the role of mortgage financing, Investment
Trust financing and private equity financing on real estate growth in Homa Bay town are
missing. The specific objectives of the study were to; evaluate the relationship between
Mortgage financing and the growth of real estate in Homa Bay town; determine the relationship
between Investment Trusts financing and the growth of real estate in Homa Bay town, and
establish the relationship between Private Equity financing and the growth of real estate in Homa
Bay town. The research was based on the Simulation and Structural Form Theories.
Correlational research design was employed in the study. The population of the study was the
312 real estate developers and agents in the town. Random sampling technique was used to select
a sample of 199 real estate developers and agents. Questionnaires were used to collect primary
data while content analysis was used to collect secondary data. Test-retest coefficient of 0.81 and
CVI of 0.78 were obtained to establish reliability and validity of the questionnaires respectively.
Multiple regression analysis was used to analyse data and the results were presented using tables
and figures. It was established that real estate financing has a high correlation with the growth of
real estate, (r = 0.856, p= 0.043) and financing sources explain 73.3 percent of the growth of real
estate (R2= .733). Furthermore, mortgage financing positively and significantly influences real
estate growth (j3= 0.346, p= 0.000); Investment Trust financing has no significant influence on
real estate growth (j3= 0.194, p= 0.063); and that private equity financing has a positive
significant influence on real estate growth (j3= 0.272, p= 0.00). Therefore, a unit increase in
mortgage and private equity financing results to 34.6% and 27.2% growth in real estate
respectively. The study concludes that growth of real estate significantly depends on financing
sources. The study recommends that mortgage financing institutions make mortgage financing
more accessible; Investment Trust financing be simplified; and that banks private equity finance
more accessible. The findings of this study are likely to benefit mortgage institutions when
lending to their customers to finance homes and business offices. In addition this research may
stimulate academics and encourage further studies in the area of real estate financing. | en_US |
