THE RELATIONSHIP BETWEEN MORTGAGE FINANCE AND REAL ESTATE DEVELOPMENT IN KENYA

Real estate investment plays a crucial role in providing employment opportunities, offering shelter to households, enhancing income distribution and alleviating poverty. One of the most important factors in real estate development, world over, is its financing. Unlike the developed countries that use stocks and bonds, financing of real estate developments in Kenya is predominantly through mortgage financing. This study will seek to find out the relationship between mortgage financing and real estate development in Kenya. This study will adopt a descriptive research design. The target population will be the real estate firms in Kenya from which the study sample will be derived. The study will be based on secondary data retrieved from the property indices reports from the KNBS and CBK while the primary data will be collected through administering of questionnaires to the selected real estate firms. Quantitative data will be analyzed using descriptive statistics through the use of SPSS v.20. Multiple linear regression analysis will also be used to establish the relationship between mortgage financing and real estate development in Kenya. Tables and graphs will be used to present the study findings as appropriate.