A business success or failure in the 21st century depends on how well it can compete in the
existing market. The global system has harmonized standards from country to country right
across to the lowest common denominator. The real estate property market has had
tremendous growth because of the belief among investors that real estate is an asset that can
offer security in terms of income and capital flow or both. In Kenya the real estate sector has
expanded so much that it has turn out to be the fourth biggest contributor to the economy’s
wealth. This current study pursued to fill in the current research gap in this sector by
answering the following research question; what is the effect of foreign direct investment on
the growth of real estate in Kenya. This study adopted a descriptive research design. For this
study, the target population consisted of the 80 real estate companies in Kenya. The study
purposively selected one finance manager from each of the 80 Real estate companies in
Kenya. Both primary and secondary data sources were used for the study to gather data for
analysis. Primary data collection involved self-administration of a questionnaire. Quantitative
data was analysed using descriptive analysis like frequency, mean, percentages and standard
deviation, using SPSS as a tool for the analysis. Content analysis was used in analysing
qualitative data. Here the opinion of the respondent was presented in a prose form. The study
used multiple regression analysis. The study established that foreign direct investment
influence growth of real estate’s sector in the country to a great extent. It also established that
the Kenyan government has initiatives of attracting foreign direct investments in the real
estate’s industry in Kenya. From the regression analysis, the study found that foreign direct
investment positively influences growth of the real estate’s sector in the country. The study
also recommends that the government should enhance implementation of the various policies
that will attract foreign direct investment in Kenya will be of benefit on the real estate
progress in the Kenyan industry to a great extent. The government should have incentives
that will attract FDI to the real estate sector stimulating the growth of real estate’s sector in
Kenya to a great extent.