scholarly journals CONSTRUCTION COST AND THE GROWTH IN SUPPLY OF REAL ESTATE HOUSING IN KENYA

2016 ◽  
Vol 1 (1) ◽  
pp. 56
Author(s):  
Samuel Mungai Ngugi ◽  
Dr. Lucy Wamugo
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Low Income ◽  
Building Materials ◽  
Construction Cost ◽  
Real Estate Market ◽  
Primary Data ◽  
High Interest Rate ◽  
The Real ◽  
The Real Estate

Purpose: The main purpose of this study was to establish the effects of construction cost on the growth in supply of real estate housing in Kenya. Methodology: The study adopted a descriptive research design. The target population was 78 registered real estate companies in Kenya. The sample size was therefore 39 registered real estate companies in Kenya. Primary data was collected through the administration of the questionnairesResults: The study found that finance cost, cost of building materials, cost of land and tax cost have a statistical and negative influence on the growth of supply of real estate housing. The study also concludes that increase in growth of real estate market despite the high interest rate could owe to the price inelastic demand for housing owing to economic disparity in the country. While low income earners, who are majority, are pushed away to less glossy and crowded homes where survival supersedes luxury, the upper middle income purchase of housing units is on the upward spiral.Unique contribution to theory, practice and policy: The study recommended that the government should lower interest expenses so as to encourage the increase in supply of affordable real estate housing. The bank should also lower their interest rates so that the real estate firms can be able to increase the supply of housing. The study also recommends that investors should consider investing in the real estate market despite the erratic interest rates.

Research on the Impacts of Real Estate on Economic Growth: A Theoretical Model-Based Analysis

2018 ◽  
Vol 06 (04) ◽  
pp. 1850025
Author(s):  
Xiaoxi ZHANG ◽  
Lu GUO
Keyword(s):  
Economic Growth ◽  
Real Estate ◽  
Low Income ◽  
Housing Prices ◽  
Well Being ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Pillar Industry ◽  
The Impact

As the pillar industry of China’s economy, the real estate sector has a significant impact on macroeconomic growth. We assume that the first stage of economic actors’ working lives is a low-income one, while their second stage is a high-income one. Then, relying on an Overlapping-Generations Model, we analyze how, via real estate, the behaviors of different income groups affect the macroeconomy. The results show that when the supply of real estate market fluctuates then this has an impact on economic growth, but the extent of the impact depends on the relationship between the real estate and the consumer markets. We also find that when economic actors more greatly prefer their current situations of well-being, no matter whether there takes place or not a new increase in real estate stocks, a negative correlation will exist in the relation between real estate stocks and their prices. Lastly, we come to the conclusion that increases in property taxes can effectively reduce housing prices, but the impact of transaction taxes on housing prices can still not be determined.

scholarly journals Management of the Real Estate Market in Vietnam with Lessons from Poland

2018 ◽  
Vol 6 (6) ◽  
Author(s):  
Vu Ngoc Xuan
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Real Estate Market ◽  
Lessons Learned ◽  
Debt Ratio ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Per Capita ◽  
Bad Debt

Vietnamese economy in the year 2017 reached a GDP growth rate of 6.81%, inflation was controlled at 3.53%. According to Prime Minister Nguyen Xuan Phuc, Vietnam's economy has overcome many difficulties with the recovery and higher growth. In 2017, the size of the GDP economy will be about $ 220 billion, GDP by purchasing power parity - PPP $ 600 billion, per capita GDP of $ 2,385, and GDP per capita PPP is 6,000 US dollars. As predicted by the General Statistics Office, Vietnam's GDP in the next two years is expected to increase by 6.8%, and 7%. The exchange rate between the Vietnamese dong and foreign currencies such as the US dollar, the yen and the euro remains stable, while a trade surplus of $ 2.67 billion in 2017, slightly up from $ 2.52 billion US surplus in 2016. In addition to the macroeconomic highlights, Vietnam's economy faces challenges due to bad debt from the decline of the real estate market in the past, the bad debt ratio The banking system is high with interest rates falling but still at high levels, many businesses still find it difficult to mobilize business capital. At present, the drastic direction in the direction and management of the State Bank, the birth of the company VAMC recently brought the bad debt ratio of banks to an average of less than 5%. In this article, the author discusses the lessons learned from the management of the real estate market in Poland to provide a number of measures to increase liquidity in the real estate market in Vietnam economic growth in the future.

scholarly journals Real estate boom in Chile and fundamentals on house prices

2020 ◽  
Vol 6 (1) ◽  
pp. 1-26
Author(s):  
C. Aguilera Alvial
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Structural Breaks ◽  
House Prices ◽  
Housing Prices ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
Integration Test ◽  
The Real Estate Market

This article studies the fundamentals of housing prices based on the Real Index of Housing Prices (IRPV), given that in recent times in Chile there has been a sustained increase in price levels and seeks to find evidence on the existence of a possible speculative bubble in the real estate market. Following the methodology of various Chilean and international authors, the Engle & Granger Co-integration methodology was applied. Furthermore, the results of the previous methodology were compared using the Johansen Co-integration test. Then a method to find structural breaks is applied. As a result, evidence is found to not reject the existence of a bubble in the real estate market. It is found that only interest rates co-integrate in the long term with the evolution of house prices, while the other fundamentals present a spurious relationship.

scholarly journals Twenty Years of Mortgage Banking in Slovakia

2020 ◽  
Vol 8 (3) ◽  
pp. 56
Author(s):  
Eva Horvatova
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Real Estate Market ◽  
Data Envelopment ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Low Interest Rates ◽  
Real Estate Prices ◽  
Analysis Models

Mortgage banking began to develop in Slovakia after 1998 as an ambitious project, the goal of which was to elevate the lagging development of the real estate market, the development of the financial market and the creation of banks’ long-term resources. Our goal is a comprehensive assessment of the development of Slovak mortgage banking for the past 20 years from the perspectives of the development of banking, the mortgage bond market, the real estate market and selected interactions between individual elements of the mortgage system. The specific aim of the study is to evaluate the substantial links between the basic economic indicators, indicators of housing finance and real estate prices in Slovakia. To evaluate these issues VAR (Vector Autoregression) models, models of panel and linear regression and DEA (Data Envelopment Analysis) models were used. Slovakia has specific indicators of the development of mortgage banking, adequate to its historical and economic development. It was confirmed that the availability of real estate loans had a significant impact on the increase in real estate prices. Real estate prices in Bratislava have different development factors than real estate prices from a nationwide perspective. Low interest rates have an important role in housing financing. The second part of the study is oriented towards an evaluation of the technical efficiency of individual banks. The results of DEA point out that the largest banks in Slovakia were the most efficient in the pre-crisis year 2007. The overall results show that policymakers should react not only to the household indebtedness rate and risks for individual clients, but should also see the risks for banks in possible changes in the real estate market, or the risks of changes in interest rates in the future.

Conducting Real Estate Market Analysis

2002 ◽  
Author(s):  
Grant Ian Thrall
Keyword(s):  
Real Estate ◽  
General Framework ◽  
Social Indicators ◽  
Real Estate Market ◽  
Market Analysis ◽  
Primary Data ◽  
The Real ◽  
The Real Estate ◽  
Trade Area ◽  
Real Estate Project

This chapter establishes a general framework for conducting market analysis for all types of real estate. The subsequent chapters show how, with appropriate modifications, this general framework applies to specific real estate product types. The following chapters also include examples of the general approach introduced here. Four general steps must be included in all real estate market analysis. This chapter will progress through each of the four steps. First, a trade area, also known as a market area, must be established from which to draw the data for the real estate market analysis. Explanation is provided on how to delineate a trade area for the project, including how large the trade area is and the geographic delineation of its boundaries. Second, to evaluate the competitive position of the project, competing supply is estimated. Competing supply includes both current and projected supply within the trade area derived in the first step. To identify competitive projects, the market analyst must also determine what segment the real estate project is to compete in. Third, demand must be measured. Demand estimation includes the assembly and use of projections of economic, geographic, and social indicators that together influence the demand for a specific real estate project. Occasionally, data readily available from commercial data vendors are inadequate for specific types of real estate projects. In these circumstances, demand is estimated using primary research, including surveys and focus groups, as well as assembly of primary data. The fourth step is compiling the report and presenting the analysis to client. The report must reconcile the results of the foregoing three steps with the goals and needs of the client. The client may be an investor, a developer, a redevelopment agency, and so on. The objectives of the client might influence how the fundamental first three steps are interpreted. The market analysis report generally concludes with recommendations, as well as a description of the overall project within the wide context of the economic, geographic, and social forces that are shaping the urban built environment. The analyst draws conclusions, including projecting absorption rates and pricing recommendations.

scholarly journals Modelagem dos Preços de Imóveis Residenciais Paulistanos

2011 ◽  
Vol 9 (2) ◽  
pp. 167
Author(s):  
Denisard Cneio de Oliveira Alves ◽  
Joe Akira Yoshino ◽  
Paula Carvalho Pereda ◽  
Carla Jucá Amrein
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
House Price ◽  
Housing Price ◽  
Real Estate Market ◽  
Hedonic Model ◽  
The Real ◽  
The Real Estate ◽  
New Findings ◽  
The Real Estate Market

Hedonic modeling has become a benchmark for pricing real assets with several intrinsic characteristics. This work tests also others dimensions for asset pricing: the quality of life in the housing neighborhood and macroeconomic variables. The data is about the real estate market in São Paulo city from January 2001 to March 2008. The main results were: the longer the maturity of mortgage financing, the larger the housing price, but decreasing interest rate spread stimulate the real estate market, and the interactions between the dummy for the boom period and either housing characteristics or bank interest rates spread show that the hedonic model loses its relative importance for pricing, while market risk variables become much more relevant. Thus, these new findings suggests that for modeling a house price index it is not sufficient to consider only average prices or a hedonic approach, but both the market and credit risks as well.

scholarly journals The impact of macroeconomic factors on real estate prices

2019 ◽  
Vol 70 (4) ◽  
pp. 603-626 ◽  
Author(s):  
Milena Radonjić ◽  
Vladimir Đurišić ◽  
Sunčica Rogić ◽  
Andrija Đurović
Keyword(s):  
Real Estate ◽  
Interest Rates ◽  
Unemployment Rate ◽  
Real Estate Market ◽  
The Real ◽  
The Real Estate ◽  
The Real Estate Market ◽  
Price Trends ◽  
Real Estate Prices ◽  
The Impact

The real estate market, as one of the most volatile economic sectors, is a key research topic for many authors. Regardless the significance of this topic, no previous research has been conducted to evaluate the factors which influence the price of real estate in Montenegro. Therefore, the objective of this study is to clarify whether the trend in real estate prices in Montenegro can be explained by macroeconomic fundamentals such as GDP, the inflation rate, interest rates on mortgages, take-up of mortgages, the unemployment rate, the average net salary, the current account deficit and constructing activity and to determine which of them is the most important in explaining the price trend for this market. The applied methodology is based on the model averaging technique, which has not been used in previous research on this topic; it enables the research to focus on the relevant results despite the short time series and the large number of independent variables. The results obtained point to the fact that price trends in real estate are best described by and most closely align to GDP. Apart from GDP, net salary, the unemployment rate as well as the take-up of mortgages and their interest rates are shown to be significant as variables, which determine price trends within the real estate market.

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