Corporate Strategies and Performance of Real Estate Companies in Kiambu County, Kenya

Abstract

The real estate sector in Kiambu County, Kenya, has experienced significant growth and development in recent years, driven by urban expansion and infrastructural improvements. However despite this growth, real estate companies face a range of performance issues that impact their operational efficiency, financial stability, and overall success. This study therefore sought to determine the influence of corporate strategies on performance of real estate companies. . Specifically, the study aimed at evaluating the influence of investment, funding, growth and quality assurance strategies on performance of these real companies The study was anchored on the balance scorecard model, modern portfolio theory, quality improvement theory and resource-based theory. The study will adopt descriptive research design. The total target population will be 156 from the real estate firms within Kiambu County. The unit of analysis will be 52 selected registered real estate firms while the unit of observation will be owners, managers and assistant managers of 52 selected registered real estate firms in Kiambu County. The study will adopt a census technique to incorporate all the 156 corporate level team. Questionnaires were used to collect primary data desirable for the study. Pilot-test was conducted in Real Estate Firms in Nairobi County whereby 16 managers were issued with questionnaires. Internal consistency was utilized to evaluate the reliability using a Cronbach's Alpha value at a threshold of 0.7. The study used both descriptive and inferential statistics. Descriptive analysis included frequency, percentage, mean and standard deviation. The inferential statistic involved Pearson and regression correlation analysis which established the relationship between the independent and dependent variable. The quantitative data was presented in form of tables and figures. The study established that there exists a positive and significant relationship between investment strategy, funding strategy, growth strategy and quality assurance strategy on performance of Real Estate Companies in Kiambu County. Based on the findings, the study concluded that buy-and-hold strategy save real estate companies from pressure of haste investment decisions. Also, the study concluded that real estate companies that prioritize equity funding are better positioned to attract high-quality investors. Moreover, the study concluded that quality control in construction ensures that real estate companies deliver projects on time and within budget which enhances performance. The study recommended that Real Estate Companies should develop comprehensive strategic plans that align with focusing on investment diversification, efficient funding utilization, sustainable growth, and quality assurance. To the government and regulatory bodies, the study recommended development of policies and regulations that facilitate investment in the real estate sector while ensuring compliance with quality standards, environmental sustainability and consumer protection.