Factors Affecting Real Estate Market Development in The Case of Gift Real Estate

No Thumbnail Available

Date

2023-12-11

Journal Title

Journal ISSN

Volume Title

Publisher

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

Description

Keywords

Citation

Collections