Abstract:
Real estate business is an undertaking that has been perceived as a project that needs a
lot of capital to initiate. In Kenya, investing in real estate has been a huge venture for the
last 10 years as demand for housing continues to rise. This research aimed at establishing
the perceived role of financing options on the sustainable growth of real estate in
Nairobi Metropolis, Kenya. It is difficult to fund big projects in real estate solely from
personal savings. There is need to use other sources of finance such as equity, mortgage,
or venture capital. This research paper was guided by four specific objectives; to assess
influence of mortgage financing on the sustainable growth of real estate in Nairobi
Metropolis; to evaluate the effect of savings financing venture capital financing and
equity financing on the growth of real estate in Nairobi Metropolis. Thise study used
primary data collected using a structured questionnaire from registered developers in
Kenya with an interest in Nairobi Metropolis. The sample size was 81 out of a population
of 100 developers registered with Kenya Property Developers Association. The study
employed descriptive research design and data was analyzed through multiple
regression analysis. Results showed that the variables addressed explain 93% of the
growth of while mortgage financing and equity financing contributed immensely to
sustainable growth of the real estate sector in Nairobi Metropolis in Kenya.
