RUAHA CATHOLIC UNIVERSITY

This study focused on the impacts of real estate investments towards the economic growth of the country. The study investigated on how interest rates, inflation rates, transaction costs and demand for houses economic forces in real estate investments affect economic growth of the country of Tanzania. The study adopted quantitative research approach; this approach was used to make possible to gather more data and test research hypotheses. Explanatory research design, survey research technique, simple random sampling and purposive sampling were employed during the study. Data were collected by the use of questionnaires which were administered to 100 respondents. Validity and reliability of the data were tested showing the KMO= 78%, and Cronbach’s Alpha= 93.5%. Ruaha Catholic University Faculty of Business, Economics and Management Sciences Ruaha Journal of Business, Economics and Management eISSN 2507-79945 Vol 2, Issue 1, 2019 14 Ruaha Journal of Business, Economics and Management Sciences Vol. 2, Issue 1, 2019 Findings using regression analysis revealed that there is positive relationship between interest rate, inflation, transaction costs as well as demand for housing and the economic growth of the country. It is concluded that a change in unit of inflation, interest rate or transaction costs and demand for houses lead to a decrease or increase in performance of real estate respectively.

Country, Economic, Real, Estate, Growth, Inflation, Interest, Investment