Obstacles Real Estate Investment and Their Impact on Economic Development

Abstract

The study aimed to identify the obstacle of real estate investment and their impact on economic development in Libya. To achieve the aim of the study, a questionnaire was used and distributed to (100) management employees within twelve real estate investment companies in Misurata. The number of questionnaires which were suitable for analysis reached rate of (80%). However, the questionnaire contained four main categories which were: real estate financing controls and policies, the high cost of land and building materials, law and legislation that regulate the investment in real state, and economic development. However, the statistical package (SPSS) and a simple linear regression was used to analyse the data. The study found that a clear absence of policies for granting real estate credit in banks, as well as the inflexibility of applicable laws, which are the most important obstacles to real estate investment in Libya. Moreover, the delay in procedures for improving the infrastructure, such as, water, electricity, and others which limits the volume of land supply and increase the ability to invest.