EFFECT OF EMPLOYMENT RATE ON PRICES OF COMMERCIAL REAL ESTATE IN NAKURU TOWN EAST SUB COUNTY

Abstract

The prices of commercial properties in Nakuru have fluctuated in recent years. In 2018, the prices of commercial properties in Nakuru declined by an average of 2.7%, with the retail sector being the hardest hit, registering a decline of 4.4%. Therefore, this study sought to assess the effect of employment rates on the prices of commercial real estate in Nakuru Town East Sub County. The study was anchored on the classical theory, the study adopted an explanatory research design. The study targeted operational managers and financial managers from 60 reals estate agents and companies in Nakuru Town East Sub County. A census design was adopted. A questionnaire was used to collect primary data. A pilot-test was conducted in Nakuru West Sub-County. Content and face validity were enhanced. Internal consistency technique was adopted with Cronbach’s Alpha to measure reliability. Quantitative data was analyzed by Statistical Package for Social Sciences. Descriptive and inferential statistics were employed in the study. The analyzed data was presented in the form of tables. Based on the findings the study concluded that there is a positive and statistically significant correlation between employment rate on prices of commercial real estate in Nakuru Town East Sub County (r=0.712; p<0.05). Based on the effect of the employment rate of commercial real estate, the researcher recommended that commercial real estate should assess labor force participation rates