Effect of Property Market Liquidity on Real Estate Investment Performance in Nairobi County, Kenya
Keywords:
Property market liquidity, real estate investment performance, rental yields, capital appreciation, transaction volume, Nairobi County, KenyaAbstract
This study examined the effect of property market liquidity on real estate investment performance in Nairobi County, Kenya. The study adopted a pragmatic research philosophy using an embedded mixed-methods research design. The target population comprised 129 real estate investment firms operating in Nairobi County. Quantitative data were collected from 215 respondents using structured questionnaires, while qualitative insights were obtained from key informants through interviews. Descriptive statistics, correlation analysis, and linear regression were used to analyze quantitative data, whereas qualitative data were analyzed using content analysis. The findings revealed that respondents perceived Nairobi’s property market to exhibit favorable liquidity conditions characterized by stable property prices (M = 4.03), accessible financing (M = 4.02), and active property turnover (M = 3.95). Real estate investment performance was also rated positively, with transaction volume (M = 4.01), capital appreciation (M = 4.01), and rental yields (M = 4.00) indicating strong market performance. Correlation analysis established a strong positive and significant relationship between property market liquidity and real estate investment performance (r = 0.703, p < 0.001). Regression results further showed that property market liquidity significantly predicts real estate investment performance (β = 1.267, p < 0.001), explaining 49.4% of the variation in performance (R² = 0.494). The study concludes that property market liquidity significantly enhances real estate investment performance by promoting transaction efficiency, improving access to financing, and facilitating capital appreciation and rental income growth.
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Copyright (c) 2026 Saida Ali Aden, Jane Muriithi
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This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
