DETERMINANTS OF HOUSE PRICE BY REAL ESTATE AGENCIES IN ELDORET MUNICIPALITY, KENYA
Abstract
Real estate pricing deals with the valuation of real estate and all the standard methods of determining the price of fixed assets apply. House prices are limited and determined by various factors. The purpose of this study was to assess the determinants of house prices of real estate agencies in Eldoret municipality in Kenya. The study was guided by three objectives; to establish the effect of location on house prices, to establish the effect of demand on house prices and to establish the influence of cost of production on house price. To achieve the objective of the study a descriptive research design was adopted. The target population was 30 respondents of real estate agencies in Eldoret Municipality. Both primary and secondary source of data were utilized. Inferential and descriptive statistics were used to analyze the data and the results were interpreted and presented using percentages and frequency distribution. Regression analysis was used to establish the extent to determinants influence house prices. The study found out that location has a positive influence on house prices, demand has a positive influence on house prices and real cost of production has a positive influence on house prices. Based on the findings, the study recommended that the government should regulate real estate sector by putting proper measures to tame insanity in the market to prevent price shock of houses in future, when developers/investors are buying land for development they should consider location access to social amenities, infrastructure to avoid losses in their investment portfolio. The study also recommended that real estate developers should consider the composition of the population so that they can produce houses targeting their client’s need.
Key Words: House Locations, House Demand, Cost of Production, Real Estate value
CITATION: Nyambane, O. M., & Muturi, W. (2019). Determinants of house price by real estate agencies in Eldoret Municipality, Kenya. The Strategic Journal of Business & Change Management, 6 (4), 1185– 1200
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DOI: http://dx.doi.org/10.61426/sjbcm.v6i4.1459
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