Social capital and mortgage finance as factors affecting the performance of real estate: A study of Kisii County

Abstract

Over the past few years the real estate sector in Kenya has experienced a massive boom this is because the property market is responding to demand that has been created by the expanding middle class with disposable income and in which people have become able to service their mortgages. In Nairobi, the capital and large t city of Kenya, there i one of the largest ex pat communities in the continent this is due to the significant number of multinationals who have chosen Nairobi a either their African hub or East and Central African hub. Nairobi's profile as a regional business hub has been growing a seen by the number multinationals, from diverse industries, which have chosen to open hop in the Kenyan capital or decided to choose the city as their base for Africa-wide operation. Real estate investment is an important sector in the growth of any economy. It enable wealth creation as well a creates employment to many. Real estate investments range from rental property commercial, industrial and special purpose properties. There is high demand for real estate property while the supply is slightly below the required level. However there are many factors such as demographics, social capital, mortgage finance, interest rates, the economy, government policies and other factors are serious threats to the development, growth and expansion of the real estate and must be dealt with accordingly to reduce the effects it has on real estate investors .Social capital and mortgage finance have been the major factors affecting the performance of Real Estate in Kenya particularly in Kisii County. This study focuses on how these two variables affect the performance of real estate and i aimed at finding out the relationship between social capital and mortgage financing, the relationship between mortgage financing and performance of real estate and the relationship between social capital and performance of real estate.