THE MISMATCH BETWEEN THE REAL ESTATE DEVELOPMENT AND MORTGAGE UPTAKE IN KENYA
The aim of the study was to establish the mismatch between the real estate development and mortgage uptake in Kenya. The main objectives were: to establish the current real estate development level and mortgage uptake in Kenya, to establish the factors contributing to the current real estate development rate, and to establish the factors contributing to mortgage uptake in Kenya. The research used both qualitative and quantitative approaches. The study relied on published secondary data drawn from world bank, central bank of Kenya, Kenya national housing corporation, the Kenya national bureau of statistics, World Bank and the Central bank of Kenya. Other studies published by private institutions were also considered. Convenience sampling technique was applied where the study sampled published reports that were available, and contained current data on real estate development and mortgage uptake in Kenya. The research primarily made use of secondary data. All raw data collected from the investment reports will be sorted out, grouped, coded and manually keyed into a computer onto a Microsoft Excel Worksheet. Findings and analysis of data acquired from the survey were presented in tables and also some descriptive nature. The study found out that: indeed there exists a big gap between housing unit supply and demand in the Kenyan market despite the recent developments in the real estate and also the real estate industry accounts for the largest percentage of credit. The mortgage uptake also remains low due to a number of factors such as: High credit risk due to absence of credit history, failure by commercial banks to provide long-term financial credit to potential home owners, property developers lack infrastructural services such as roads, water and sewerage are adding up to the overall cost of construction...