THE RELATIONSHIP BETWEEN MORTGAGE FINANCING AND REAL ESTATE GROWTH IN KENYA Ruth Munyite Wanyonyi and Tabitha Nasieku [01-07] [PDF]
Real estate investment plays a crucial role in providing employment opportunities, offering shelter to households, enhancing income distribution and alleviating poverty. Mortgage financing is a critical element of real estate growth. This study sought to determine the relationship between mortgage financing and real estate growth in Kenya. The study adopted a quantitative research design and targeted 20 real estate firms in Nairobi. Both Primary data and secondary data was used for analysis using descriptive and inferential statistics. The study found that the cost of finance was a key obstacle to the growth of real estate investments. The study evidenced that real estate growth was adversely affected by mortgage default risks. Further the results showed significant inverse relationship between mortgage interest rates and real estate growth as well as between mortgage default rate and real estate growth but a significant positive relationship between mortgage design and real estate growth.