Factors of Production, County Government Policies and Financial Growth of Commercial Real Estate Investment in Machakos County, Kenya

Abstract

There has been a slow growth in the commercial real estates in Kenya as compared to the demand of the houses. Demand for housing units continues to outstrip the supply; and property developers in Kenya have in the recent years considerably scaled down their construction activities, pointing to a struggling property sector. The purpose of the study was to establish the influence of factors of production and County Government policies on financial growth of commercial real estate investment in Machakos County, Kenya. The research was guided by the following specific objectives; to determine the influence of land profile labor characteristics, capital characteristics and entrepreneurship characteristics on financial growth of commercial real estate investment in Machakos County. The study also sought to establish the moderating role of County Government policies on the relationship between factors of production and financial growth of commercial real estate investment in Machakos County. The research adopted a crosssectional study research study style. The target populace for this study was made up of 374 registered residential property programmers with Kenya Building Developers Organization operating in Machakos County. The research study used demographics strategy to research all the 374 registered property programmers. The target respondents for the research were the senior managers of the 374 registered building development companies. Before beginning of the actual research, 40 participants from Kajiado, were used in a pilot research study to pre-test the study tool. The researcher triangulated both structured sets of questions as well as open-ended meeting overview to collect and fill both measurable and qualitative data from the respondents. Qualitative information was assessed using detailed stats while quantitative data was examined using inferential data. Statistical Bundles for Social Sciences (SPSS) variation 25.0 software application was made use of for greater statistical calculations. The outcome disclosed that there is; a favorable and also substantial partnership between land profile as well as monetary growth of industrial realty investment in Machakos County; a positive and substantial connection between labour characteristics as well as monetary growth of industrial real estate financial investment in Machakos County. Additionally, the results disclosed that there is a positive as well as considerable relationship in between resources attributes and also monetary growth of business realty investment in Machakos County. Lastly, the outcomes show that there is a favorable and also considerable relationship between entrepreneurship characteristics as well as financial growth of commercial realty investment in Machakos County. The study in addition revealed that region government policies had a regulating effect on the connection between elements of production and monetary growth of industrial realty investment in Machakos County. Based on the findings, the study concluded that all the factors of production used in this study have positive and significant effect on financial growth of commercial real estate investment in Machakos County. The study therefore recommends that before considering investing in commercial real estate in Machakos County, investors should consider, land profile location, land profile size, soil condition, labour characteristics cost and availability, capital characteristics structure and capital characteristics cost, innovation and flexibility and local laws and legislations.