| dc.description.abstract | Real estate is defined as land, including the air above it and the ground below it, and any
buildings or structures on it. It covers residential housing, commercial offices, trading spaces
such as theatres, hotels and restaurants, retail outlets, industrial buildings such as factories
and government buildings. Real estate involves the purchase, sale, and development of land,
residential and non-residential buildings. Due to its unique nature, heavy capital involvement
and complexity, its development entails a lot of uncertainties and risks. Entrepreneurs in this
sector are expected to make sound decisions in the management of these risks in order to
achieve their entrepreneurial objective on property performance.
Real estate sector is globally regarded as an integral partof a country’s economy. It is
responsible for a considerable part of its development investment with sizeable amount of
economic growth through backward and forward linkages to a considerable number of
ancillary industries and sectors. Its contribution to GDP in 2010 was 28% (US) and 28% in
United Kingdom (Kongela, 2013) .The Indian real estate sector is one of the most globally
recognized sectors. It is slated to grow at 30 per cent over the next decade. The construction
industry ranks third among the 14 major sectors in terms of direct, indirect and induced
effects in all sectors of the economy (Kimani and Memba, 2017). The GDP share of real
estate in India was 6.3 per cent in 2013 and expected to generate 7.6 million jobs a year. In
China, the GDP share of real estate grew from 5 per cent in 2000 to 15 per cent in 2012, with
14 per cent of urban employment coming from real estate and related sectors (Mutreja, Chua
and Guha, 2015). Similar performance were realized by African states were real estate
contribution to GDP was6.82% (Nigeria in 2014), 10.2% (Tanzania in 2012) while in Kenya
it registered 4.8% of GDP in the year 2013 (Kongela, 2013; Kenya National Bureau of
Statistics (KNBS), 2015. Although, this sector plays a pivatol role in economic development,
the performance of real estate properties has perinnially been eclipsed by several challenges
including the management of its risks borne throughtout their development life cycle. The
resultant is a threat to its expected or intended performance (Wiegelmann (2012). | en_US |
