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Factors Affecting the Growth of Real Estate Investment Companies in Kenya: a Case of Premier Realty Limited

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Factors Affecting the Growth of Real Estate Investment Companies in Kenya: a Case of Premier Realty Limited FACTORS AFFECTING THE GROWTH OF REAL ESTATE INVESTMENT COMPANIES IN KENYA: A CASE OF PREMIER REALTY LIMITED BY CATHERINE NKIROTE MBURUGU UNITED STATES INTERNATIONAL UNIVERSITY- AFRICA SUMMER, 2019 FACTORS AFFECTING THE GROWTH OF REAL ESTATE INVESTMENT COMPANIES IN KENYA: A CASE OF PREMIER REALTY LIMITED BY CATHERINE NKIROTE MBURUGU A Research Project Submitted to the Chandaria School of Business in partial fulfillment of the Requirement for the Degree of Master of Business Administration UNITED STATES INTERNATIONAL UNIVERSITY USIU-AFRICA SUMMER 2019 i STUDENT’S DECLARATION I, the undersigned, declare that this is my original work and has not been submitted to any other institution, or university other than the United States International University – Africa in Nairobi for academic credit. Signed: Date: Catherine NkiroteMburugu (ID No: 610599) This research project report has been presented for examination with my approval as the appointed supervisor. Signed: Date: Dr.Peter Kiriri. Signed: Date: Dean, Chandaria School of Business ii COPYRIGHT Copyright © Catherine NkiroteMburugu, 2019 All rights reserved. No part of this research project report may be photocopied, recorded or otherwise reproduced, stored in retrieval system or transmitted in any electronic or mechanical means without prior permission of USIU-A or the author iii LIST OF TABLES Table 3.1: Population Distribution ..................................................................................... 22 Table 3.2: Sample Size Distribution .................................................................................. 24 Table 4.1: Response Rate ................................................................................................... 28 Table 4.2: Years of Dealing with Real Estate .................................................................... 31 Table 4.3: Income per Month............................................................................................. 32 Table 4.4: Customer related factors on Growth of Real Estate ......................................... 33 Table 4.5: Correlation Matrix between Customer related Factors and Growth of Real Estate .................................................................................................................................. 34 Table 4.6: Model Summary for Effect of Customers related Factors and Growth of Real Estate .................................................................................................................................. 35 Table 4.7: Regression Coefficient for Effect of Customers related Factors and Growth of Real Estate ......................................................................................................................... 35 Table 4.8: Socio-demographic Factors related to the Growth of Real Estate .................... 37 Table 4.9: Correlation Matrix between Socio-demographic Factors and Growth of Real Estate .................................................................................................................................. 38 Table 4.10: Model Summary for Effect of Customers related Factors and Growth of Real Estate .................................................................................................................................. 38 Table 4.11: Regression Coefficient for Effect of Socio-demographic Factors and Growth of Real Estate ..................................................................................................................... 39 Table 4.12: Managerial Factors/ Practices related to Growth of Real Estate .................... 40 Table 4.13: Correlation Matrix between Managerial Factors/ Practices and Growth of Real Estate ......................................................................................................................... 41 Table 4.14: Model Summary for Effect of Customers related Factors and Growth of Real Estate .................................................................................................................................. 42 Table 4.15: Regression Coefficient for Effect of Customers related Factors and Growth of Real Estate ......................................................................................................................... 42 Table 4.16: Growth of Real Estate ..................................................................................... 43 Table 4.17: Results of Regression of Independent Variables against Growth of Real Estate .................................................................................................................................. 45 iv LIST OF FIGURES Figure 4.1: Gender of the Respondents.............................................................................. 29 Figure 4.2: Type of Customer ............................................................................................ 29 Figure 4.3: Age of the Respondents ................................................................................... 30 Figure 4.4: Level of Education .......................................................................................... 31 v TABLE OF CONTENTS STUDENT’S DECLARATION ................................................................................................ ii COPYRIGHT .............................................................................................................................. iii LIST OF TABLES ...................................................................................................................... iv LIST OF FIGURES .................................................................................................................... v ABSTRACT ............................................................................................................................... viii CHAPTER ONE .......................................................................................................................... 1 1.0 INTRODUCTION ................................................................................................................. 1 1.1 Background of the Study ............................................................................................ 1 1.2 Statement of the Problem ........................................................................................... 5 1.3 General Objective ....................................................................................................... 6 1.4 Specific Objectives ..................................................................................................... 6 1.5 Significance of the Study ........................................................................................... 6 1.6 Scope of the Study...................................................................................................... 7 1.7 Definition of Terms .................................................................................................... 8 1.8 Chapter Summary ....................................................................................................... 8 CHAPTER TWO ......................................................................................................................... 9 2.0 LITERATURE REVIEW ................................................................................................... 9 2.1 Introduction ................................................................................................................ 9 2.2 Customer Related Factors on the Growth of Real Estate Companies ........................ 9 2.3 Effect of Socio-demographic Factors on the Growth of Real Estate ....................... 12 2.4 Effect of the Managerial Practices on the Growth of Real Estate Companies. ........ 16 2.5 Chapter Summary ..................................................................................................... 20 CHAPTER THREE .................................................................................................................. 21 3.0 RESEARCH METHODOLOGY .................................................................................... 21 3.1 Introduction .............................................................................................................. 21 3.2 Research Design ....................................................................................................... 21 3.3 Population and Sampling Design ............................................................................. 21 3.4 Data Collection Methods .......................................................................................... 24 3.5 Research Procedure .................................................................................................. 25 3.6 Data Analysis Methods ............................................................................................ 27 3.7 Chapter Summary ..................................................................................................... 27 CHAPTER FOUR ..................................................................................................................... 28 4.0 RESULTS AND FINDINGS ............................................................................................. 28 4.1 Introduction .............................................................................................................. 28 4.2 Response Rate .......................................................................................................... 28 4.3 Demographic Information .......................................................................................
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