The Effects Ofexternal Economic Factors on Real Estate Sales Performance (The Case of Selected Real Estates in Addis Ababa)
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Date
2024-10
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Addis Ababa University
Abstract
Addis Ababa faces a great house shortage therefore the development of private as well asgovernmental real estate sector is unquestionable for stabling the society’s life style. The macroeconomic variables are some of factors which influence the efficiency and stability as well as sale performance of the real estate company. As a result, the intension of this study is to analyse the effect of selected external economic variables on real estate sales performance which is exchange rates, inflation rates, buyer intension to purchase, market competition, supplier dependability and interest rates on real estate house sale performance in Addis Ababa. In order to identify the objectives undertaken both the primary and secondary data. The former data is gathered from real estate companies’ staff and real estate sales agent and the secondary data is collected from the governmental bodies. This study is also employed both the qualitative and quantitative data. The data is described by using tables and graphs. The study is used regression coefficient to know the effect, direction and magnitudes of the independent variables which is exchange rates, inflation rates, and buyer intension to purchase, market competition, supplier dependability and interest rates on real estate sales performance. The finding indicated that exchange rates, inflation rates, buyer intension to purchase the product, market competition and supplier dependability have a positive impact on real estate sales performance while interest rates has negative impacts on the performance of real estate house sales in Addis Ababa real estate market. It is recommended that regulatory body and private real estate Company should make mechanisms to reduce the negative impacts of external economic variables on Real Estate Company by implementing the suggested mechanisms.
Key words: - Buyer intension to purchase a house, interest rates, construction material suppliers and Exchange rates.