Influence of Gross Domestic Product (GDP) on Real Estate Prices in Rwanda

Abstract

During the last two decades, Rwanda has experienced a rapid increase in the prices of real estate property raising concerns among policy makers and the government. The purpose of this study was to analyze the influence of the GDP on real estate prices in Rwanda case of Kigali City Urban Areas. The study adopted quantitative descriptive and correlational research designs. Quarterly time series secondary data was used for a period of 10 years from 2008 to 2017. Statistical tests of correlation, unit root, cointegration and causality tests were carried out during data analysis. The findings of the study were presented in form of tables and graphs. The findings indicated that GDP had significant influence on real estate prices. Findings further exhibit negative association between real estate prices and GDP. The study recommends the government to strive and achieve greater economic growth rate by encouraging investments in real property, increased supply hence reduced property prices.