Challenges facing Real Estate Investment for Economic Growth in Arusha

Abstract

Today real estate investments are seen as foundation for wealth creation and economic growth in many countries. This study was based on analyzing the challenges facing real estate investments in relation to economic growth in Arusha. The study was based on Markowitz theory stating that individuals are for utility maximization, always switching from one investment to another that has the same expected return but less risk or one that has the same risk but greater expected return, or one, which has both greater expected return, and less risk. The study used descriptive approaches. Questionnaire was used and purposive sample method was used to collect data from 87 respondents. The findings revealed that there exists abundant opportunities for the rapid economic growth in Arusha city which has catalyzed the demand for real estate development. There is relationship between challenges facing real estates investment and economic growth in Arusha. The study recommends reforms and improvement on land laws for requisition and registration and communication infrastructure. There is need to regulate action on real estate pricing, rental values to attract more local participations/clients to facilitate capital accumulation and financial sustainability for economic growth.