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1. Introduction
The real estate market is very important, not just because it enhances the construction of structures and key infrastructural activities, but also because it has a strong and multiple impact nation’s entire economy (Golob et al., 2012). Additionally, the housing market is one of the key driving factors of a country’s development agenda, as the market has been listed as one of the major contributors to the gross domestic product (GDP) of a country worldwide. Furthermore, the sector is very vital to any nation intending to establish structures for ample working places and residential places (Gasparėnienė et al., 2016). The persistent increase in house prices since the end of the 1990s globally has made the housing market a key economic topic (Hott and Monnin, 2008). The dynamics of residential house prices have displayed considerable volatility in recent years, especially in European countries (Gattini and Hiebert, 2010). Additionally, the market is very complex with many variables defining its dynamic behavior (Malmir, 2015). A wide range of decision-makers are in housing price (HP) forecasting to guide investment decisions (Kestel and Yilmaz, 2020).
According to Frank (2015), Kenya experienced a boom in the real estate sector during the 21st century up to the year 2014. The real estate industry in Kenya has experienced an excessive imbalance between housing supply and demand. This imbalance renders the housing market inefficient and both the suppliers and the buyers of the properties lose repeatedly (Kayizzi-mugerwa, 2013; Mukami, 2017; World Bank, 2011). According to World Bank (2011) Reports, this situation in the market arises interalia from the tough economic situation being experienced in Kenya today. The boom in the real estate market in Kenya attracted many developers into the business of building houses either for rent or for sale. Consequently, there arose a craze by the developers to provide the houses to bridge the gap, which eventually caused an oversupply of the housing units (Otieno, 2016). Currently, many developers have either been pushed out of the business or are left with several unoccupied houses. The problem being witnessed currently in the real estate market in Kenya points to a very dynamic market that has a very volatile nature, and therefore, the aim of this study is to carry out...