The Effect of Behavioral Factors on Investment Decisions in Real Estate Sector in Nairobi County (original) (raw)
Related papers
Influence of Behavioural Factors on Real Estate Performance in Kisii Town , Kenya
2016
The purpose of this study was to establish the influence of behavioral factors on real estate performance in Kisii town, Kenya. It was established that behavioural factors have a high correlation with the growth of real estate and that behavioural factors predict 73.3 percent of the performance of real estate. The study also found out that herding has a positive significant influence on real estate performance and representativeness has a positive and significant influence on the performance of real estate. The study concludes that performance of real estate significantly depends on behavioural factors and recommends that mortgage financing institutions make mortgage financing more accessible to real estate developers. Mortgage institutions and academicians will use results from this study for decisions regarding lending to their customers to finance real estate and in encourage further studies in the area of real estate financing respectively. keywords: Behavioral factors, influenc...
Effect of Heuristic Factors and Real Estate Investment in Embu County, Kenya
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2019
Investment decisions are deemed as a deliberate and rational process based on availability of information. Though at times people are usually found to hold little information but yet end up making general decisions. Heuristics factors are simple rules of the thumb which explain how people make decisions, arrive at judgments and solve problems when faced with complex situations or in cases where the available information is incomplete. This study sought at assessing the influence of the heuristic factors on real estate investment in Embu County. The study was guided by Heuristic Theory. A census of 126 registered real estate investors from Embu town, Runyenjes and Siakago Urban centers was undertaken. Primary data was collected through a selfadministered questionnaire composed of closed ended questions. Cronbach alpha coefficient of 0.7 was used to ascertain test of the reliability of the data collection instrument. Descriptive and regression analysis were used to analyze data with the help of statistical package. Inferential statistics was also carried out to establish the nature of the relationship that exists between heuristic factors and real estate investment. Data was interpreted with the help of 0.05 significance P-values. Model fitness R 2 , ANOVA statistics and regression coefficient were generated. Prior to running a regression model, normality test was conducted. The study findings indicated heuristics factors have a positive and statistically significant relationship with real estate investment in Embu County. This study concludes that real estate investors in Embu County sometimes do not make investment decisions rationally but are influenced by heuristic biased decisions. The study recommends that Embu County Government should establish a mechanism to ensure that the prices of real estate in specific regions are availed to enable investors evaluate price changes as it may influence their decision to buy or sell the investment.
Effect of Prospect Factors on Real Estate Investment in Embu County, Kenya
2019
Investment has always been deemed as a deliberate and rational process. However, there exists a controversy if indeed this is true. This study aimed at assessing the influence of prospects factors on real estate investment in Embu County. The study was guided by Prospect Theory. The target population of the study was 126 registered real estate investors in Embu County. The study adopted a descriptive research design where a census of 126 investors from Embu town, Runyenjes and Siakago Urban centers was undertaken. Primary data was collected through semi structured questionnaire that was self-administered to respondents in the selected three areas of interest. A total of 118 questionnaires were returned giving a response rate of 93.7%. Statistical package was used to undertake descriptive and inferential statistical analysis. Descriptive analysis was done using both means and standard deviations. A test of multicollinearity was done using a numerical Variance Inflation Factors and To...
International journal of civil engineering, construction and estate management, 2023
This research focused on evaluating the factors driving real estate investment decisions among private investors in SouthEast Nigeria with a view to appraising real estate investment pattern in the study area. The study was conducted in SouthEast Nigeria specifically; Anambra, Enugu and Imo State. Data were collected from 331 registered Estate Surveyors and Valuers, 131 members of Real Estate Development Association of Nigeria (REDAN) and 133 private real estate investors in selected states. Structured questionnaire was used to collect data from the respondents. The data collected was analysed using Percentage, Mean Score, and Kruskal Wallis test with the aid of Statistical Package for Social Sciences (SPSS, version 25). Respondents were required to scale the impact factors base on five points likert scale. The results revealed that economic factors (interest rate, inflation rate, population growth and high cost of building materials) have significant effects on real estate investment decisions and government policies (Land Use Act), shortage of finance, and high cost of building materials are found to be most significant constraints to real estate investment decisions. The study concludes that interest rate, inflation rate, population growth and high cost of building materials influence real estate investment decisions. The study recommends among others the need for potential real estate investors to consider the factors that drive real estate investment decision before investing in real estate.
The International Journal of Business & Management
The main aim of this study was to examine the effect of the market approach to the valuation on the financial performance of real estate management investments in Western region, Kenya. The study was guided by Market Efficient Theory. The study employed a correlational research design. The target population of the study consisted of 52 registered real estate agents within the western Kenya region. The study adopted a census technique to gather all the required data from the existing population. Primary data were collected through structured questionnaires, and secondary data schedules were used to gather secondary data for analysis. Pretesting of survey instruments was conducted as an effort to ensure that there was both content validity and reliability. Both descriptive and inferential statistics were employed for data analysis. From the study results, market-based explained 57.2% (R2=0.572, p=0.000) of variance in the financial performance of real estate investments. The regressio...
JURNAL AKUNTANSI DAN BISNIS : Jurnal Program Studi Akuntansi
The study use behavioral finance approach to explore the factors that influence investment decisions in real estate investing in FTZ Batam. Behavioral finance is a branch of finance that studies psychology and sociology to evaluate the investment decision-making process and investors' responses to market conditions. Overconfidence, risk aversion, herding bias, and financial literacy are independent variables that are thought to influence investment decisions in real estate at FTZ based on a behavioral finance perspective. This study was conducted on 185 respondents who were selected based on several considerations such as age, investment, income, etc. to obtain representative data and are residents of Batam. The data was processed using smartPLS (Partial Least Square) using the PLS-SEM (Partial Least Square-Structural Equation Modeling) method. In this study, overconfidence, imitation, and financial literacy showed a significant and positive effect. Meanwhile, risk aversion has ...
Foreign investors have been focusing on the real estate sector with investors from China, India and other countries increasingly investing in high-rise buildings across the country especially in Nairobi County. However, as noted by previous reports, the performance of real estate projects has been dropping significantly in the recent past with most of the buildings remaining stagnant for years. This is despite the recorded increase in foreign direct investment and most recently the focus by the government on housing as one of the big-four agendas. It is on this background that the study seeks to answer the question; what is the influence of off-plan sales and purchases in the foreign direct investment on the performance of real estate development projects? Descriptive research design was used while the target population was the real estate companies in Kilimani area, Nairobi County. There are 48 registered real estate companies in this area. The units of observation were the directors, finance officers and investment managers from the 48 companies. This made a total of 144 respondents. Purposive sampling method was employed where the company directors, finance officers and investment managers will be purposively picked. The data was collected using structured questionnaires and analyzed through descriptive and inferential statistical analysis techniques. The findings revealed that off-plan sales and purchases significantly and positively influenced the performance of real estate development projects in Kilimani area, Westlands Sub-County. Government policy was also found to significantly moderate the relationship between foreign direct investments and performance of the real estate development projects. The study concluded that through off-plan sales and purchases, the real estate development projects performance better.
Assessment of Residential Real Estate Investment Performance in Lafia Metropolis, Nigeria
International Journal of Real Estate Studies
Investors are expected to be guided through investment performance measurement and analysis in order to safeguard against potential loss of investment returns or the capital invested. Whereas residential real estate (RRE) constitutes a significant part of the portfolios of individual and institutional investors across the globe, the assessment of risk-return performance of RRE investment in Nigeria generally has not been well researched. Investors in real estate (RE) in the Lafia city of Nasarawa State, like other cities in Nigeria, still rely on mere intuition, sales comparison and the rule of thumb in real estate investment decisions-making. Consequently, these ill-informed investors often venture into poorly conceived and subsequently financially disastrous real estate investment projects thereby failing to achieve their desired investment objectives. Hence, this research was conducted to evaluate the performances of RRE investment in Lafia metropolis of north-central Nigeria wit...
Factors that influencing property investment decisions among Employees in Felcra Bhd
The property investments have been growth by day. In Malaysia, property investment has been reported as one of main investment by the investors. However, according Sean and Hong (2014) there still limited study of property investment in Malaysia. The objective of this study was to find out the main factor that influences property investment decisions and examine other factors that influence property investment decisions among employees who works in investment firms. In this study, the variables are selected from the theory that related to the investment decisions. There are four independent variables that studied in this research that are financial knowledge, geographical attributes, risk awareness and the possible return. The study adopted explanatory research design and method used is internet based questionnaire. This study uses the convenience sampling to data distribution. Questionnaire consists of 25 questions of five variables that scaled using the Likert scale (1-Strongly Disagree to 5-Strongly Agree) and 6 questions on respondent's characteristics. The sample size of this study is 250 workers and only 212 respondents were used. The study used multiple regression via SPSS v.21 for analyse the data. The study found out that the financial knowledge of the Felcra workers gives the highest impact on their decisions to make property investments. While, risk awareness shows the lowest factors that can give impact on the property investment decisions. The study also found out that all independent variables discussed have significant and positive impact on property investment decisions. This study only limited to the workers Felcra Bhd, thus this study suggests future research will study on the investors that have been invested in real estate investment or differentiate the investors preference by selecting investors in different house developer.