Data Analysis

The data collected was entered and analyzed by simple descriptive analysis using Statistical Package for Social Scientists (SPSS) version 10.0 software. The software was chosen because it is the most used package for analyzing survey data. The software has the following advantages: it is user friendly, can easily be used to analyze multi-response questions, cross section and time series analysis and cross tabulation; (i.e. relate two sets of variables) and it can also be used alongside Microsoft excel and word.

Results and Presentations

• Investment Types/ Preferred Lending securities/Areas of Specialization
  There are various assets in which either investors can invest in, financiers can hold as security or property consultants have specialized in. According to the survey these include Government securities, shares, real estate, mortgage loans, corporate bonds/ commercial papers, bank deposits, chattels and debentures. Real Estate is the most preferred with 41 % while chattels and debentures are the least with an approximate count of 1% each. Graph 1 below depicts the results.

  Graph 1: Preferred Investments/ security Types
  
  Source: Author survey 2005
   

• Real Estate Investment Types
  In the real estate sector, the investments are spread in commercial, residential, industrial, agricultural and recreational properties. Most respondents or 43% have investments in commercial while only 2% have investments in recreational. This is illustrated in the chart below

  Chart 1: Real estate Investments Types
  
  Source: Author survey 2005
   

• Dominant Real Estate Investment Type:
  From the survey the most dominant real estate type is commercial, accounting for 38% of the responses as indicated below. Residential and industrial recorded 28% and 18 % respectively while agriculture scored 14%.

  Graph 2: Dominant Real Estate
  Source: Author survey 2005
   

• Provinces in which real Estate investments are situated
  The investments and or securities are situated in various parts of the country. The survey shows that Nairobi as the most popular investment destination having 43% responses while North Eastern has the least count of 1%. The chart below illustrates this.

  Chart 2: Real Estate Location Spread
  Source: Author survey 2005
   

• Tools used for performance measurement and Analysis
  All the respondents indicated that they used some form of performance measurement and analysis. The most common is looking at income growth, which scored 30%, followed by payback method with 27% as shown in table 2 below. Return on capital and Internal Rate of Return scored one 1% each.

  Table 2: Tools Used in performance Measurement

  Mode of Measurement	%
  Income Growth	30.1
  Payback	27.7
  Comparison Against Other Investment	20.5
  Capital Appreciation	19.3
  Return on capital	1.2
  Internal Rate of Return	1.2
  Total	100

  Source: Author survey 2005
   

• Sources of and adequacy of information used in performance measurement and analysis.
  Information for carrying out performance measurement and analysis is obtained from various sources. The most dominant being own research and newspapers. The table below illustrates this.

  Table 3: Sources of Information

  Source of Information	%
  Economic Survey	18.4
  Periodocal and Journals	12.6
  Newspapers	19.4
  Property Database	11.7
  Own Research	27.2
  Property Consultants	10.7
  Total	100

  Source: Author survey 2005
   

• Type of information used in Performance Measurement and Analysis
  The respondents indicated that they used different types of information to carry out performance measurement and analysis (performance appraisal). From the survey no particular type of information stands out as the most commonly used in performance appraisal. The table below illustrates.

  Table 4: Type of Information Used in Performance Measurement and Analysis

  Type of Information	%
  Macro-economic Indicators	10.6
  Transaction Costs on Land and Buildings	9
  Investments in New Construction and Improvements	9
  Passing Rents	11.5
  Operating Costs	11.5
  Capital expenditure during Life of Investments	7.4
  Lease Structure	9
  Void/Occupancy Rates	11.5
  Rent Arears	7.4
  Open Market Values of Land and Buildings	10.7
  Appreciation Rate	0.8
  Forced Sale Values	0.8
  Liquidity	0.8
  Total	100

  Source: Author survey 2005
   

• Adequacy and Reliability of Information
  The information gathered from the various sources was found to be adequate and reliable by 51% while 36% found it not to be adequate and reliable. 2% of the respondents thought the information was both reliable and not reliable.

  Table 5: Adequacy and Reliability of Information

  Response	Frequency	%
  Yes	24	51.1
  No	17	36.2
  Did not Respond	5	10.6
  Total	47	100

  Source: Author survey 2005
   

• Acceptance of and Participation in the development of the property Index
  95% of the respondents were positive on efforts to establish a property index with 78% in favor of a National Index. Other suggestions include the development of Individual indices (11%), both (i.e. Individual and National) 6.5%, regional and /or sector based. In addition 95% of the respondents were positive that they would like to be involved in its development. See charts 3 and 4 and table 4 below.

  Chart 3: Views on efforts to Develop a Property Index
  Source: Author survey 2005
   

• Type of Index
  Results reveal that most of the respondents (78%) preferred to have a national index. However there were suggestions for individual indices 11%, both national and individual 7%, and others 4%.

 

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