Factors Affecting Real Estate Market Development in The Case of Gift Real Estate
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Date
2023-12-11
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A.A.U
Abstract
The main purpose of the study is to examine the factors affecting the development of real
estate market in the case of Gift real estate in Addis Ababa. So as to meet this objective,
the study descriptive and explanatory research designs were deployed. The target
population of the study was Gift real estate who are currently operating in Addis Ababa
City. Respondents were selected from Gift real estate consisting of the real estate heads
and employees of the sales and marketing departments. A total of 180 respondents were
selected as a respondent of this study purposively. Close-ended structured questionnaire
with 7 constructs and 35 questions was utilized as instrument of the data collection. The
variables incorporated in the study was measured using the five-point Likert scale. The
data was analyzed using descriptive statistics and regression analysis techniques The
Statistical Package for Social Sciences (SPSS) version 24 was utilized to analyze the data.
Out of the distributed 180-questionnaire 166 questionnaires were collected back properly
filed. Thus, the questionnaire response rate was 92.2 percent, which is adequate to
produce reliable output. According to the descriptive analysis results, financial, cost
related, infrastructural, affordability, quality and location factors have considerable
relation with real estate market development. The correlation analysis result showed that
there exist positive and statistically significant association between real estate market
development and the six explanatory variables. The multiple regression analysis result
also revealed that financial factor and infrastructural factors as supply side factors have
positive and statistically significant effect on the development of real estate market. On the
other hand, affordability, quality and location factors influence the real estate market
development positively and statistically significantly as demand side factors.Therefore, it
is recommended that policymakers and the government of Ethiopia should create acts that
would positively govern matters regarding property tax, lending interest rates and
inflation rate as well as land related laws that would facilitate the attraction of more
investors in the real estate industry.
Key words: real estate market, finance, infrastructure, affordability, quality, location