Critical Factors and Real Estate Development by Private Developers in Kiambu County, Kenya.
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Date
2019
Authors
C. W., Muiruri
Sang, P
Journal Title
Journal ISSN
Volume Title
Publisher
International Academic Journals
Abstract
The real estate sector in and which was
previously dominated by individual
developers has now seen entry of more
institutional developers such as SACCOs,
private equity firms and foreign institutions
in major towns around the country. The
industry however continues to face
challenges such as unfavorable interest rate
environment and rapid population growth
which is creating increased demand for
housing, as families grow and consumer
needs change to reflect independent living.
It is in this light that this study sought to
investigate the critical factors of real estate
development by private developers. The
study’s specific objectives were to: assess
the role of access to finance; evaluate the
role of off-site infrastructure; analyze the
influence of land regulation and; examine
the effect of technical innovation on real
estate development by private developers in
Kiambu County. Using descriptive research
design, the study targeted 280 respondents
that consisted of 120 finance managers and
120 engineers drawn from 18 registered real
estate development firms as well as 20 land
officials and 20 planning officials from
Kiambu County. Using stratified random
sampling procedures, the study sampled 84
participants that consisted of 36 finance
managers, 36 engineers, 6 land officials and
6 planning officials; however, only 69
participants fully responded to the
questionnaires. Data analysis was done
using descriptive statistics and regression
analysis methods. The study established that
access to finance, offsite infrastructure, land
regulation and technical innovations have a
positive and significant effect on real estate
development by private developer in
Kiambu County, Kenya. The study
concludes that various factors play
significant roles in access to finance for
development by private developers, among
them availability of sources of obtaining
finance, security requirements, eligibility
requirements and interest rates. Offsite
infrastructures significantly affect real estate
development by private developers and
increases in the activities involving offsite
infrastructures would most likely reduce real
estate development by private developers.
The study concludes that land regulations
significantly affect real estate development
and that increases land regulations promotes
real estate development by private
developers. The study further concludes that
technical innovation significantly affects
real estate development and that increases in
technical innovation promote real estate
developments by private developers. On
access to finance this recommends that the
banking institutions needs to come up with
appropriate policy framework that supports
and promotes private developers efforts in
reducing the housing gap in the country. On
offsite infrastructure, the study recommends
that the County government of Kiambu
County should improve the road condition,
provide communication infrastructure,
availability of drainage systems, the
presence of social amenities and the
availability of water and power supply so as
to improve real estate development in the
county. On land regulations, this study
recommends that the county government
should up its game on land policy so as to
make land acquisition, approval, and
transfer efficient in order to promote real estate development. On technical
innovations, this study recommends that
there is need for policy making it mandatory
for investors to use new technologies and
technological tools to promote effectiveness
and efficiency in real estate development.
Description
A research article published in International Academic Journal of Information Sciences and Project Management
Keywords
Critical factors, Real estate development, Private developers, Kiambu County, Kenya
Citation
Muiruri, C. W. & Sang, P. (2019). Critical factors and real estate development by private developers in Kiambu County, Kenya. International Academic Journal of Information Sciences and Project Management, 3(3), 333-356