Relationship Between Housing Liquidity and Real Estate Market Maturity in Nairobi County

Abstract

Housing liquidity is the measure of how easily a house can be converted into cash through a willing buyer, willing seller agreement. Market Maturity as applied to the real estate market refers to the extent to which a market attains/performs with respect to a given set of criteria. This study investigated the relationship between the housing liquidity and the real estate market maturity in Kenya. It examined the factors affecting housing liquidity and their connection to real estate maturity in Kenya. The study used data for the last five years since it’s likely to give the true representation of the real estate industry which has changed overwhelmingly in the recent past. Data was collected from the licensed real estate developers in Nairobi using well designed questionnaires. The data was then analyzed using SPSS version 21. Regression and correlation models were used to clearly show the relationship between housing liquidity and real estate market maturity. The results have been shown in tables for better reporting and understanding. From the data analysis, there is no linear relationship between all the factors affecting housing liquidity classified together and market maturity. But there is a linear relationship between market research and housing liquidity. There is a linear relationship between the building of houses that cater for diverse needs and investments and the housing liquidity. There is also a linear relationship between the development of houses with the guidance of professionals and the housing liquidity. This research can be extended to look for factors that determine the housing liquidity and market maturity in the real estate industry in Kenya, since I believe there are many more that were not included in this research.