January 1, 2016 admin

What Will 2016 Bring for Real Estate in Kenya

Here’s what you need to know for the approaching year if you’re planning on taking the plunge of becoming an owner of a magnificent house or that sky-high apartment you’ve always dreamed of.

 

What you will mainly notice is movement from metropolitan cities to urban areas, improvement in infrastructure, foreign investor interest and constant development of real estate around the country.

Mobile Focus

Innovation in Kenya is mainly driven by mobile. With more people opting to access the internet via mobile rather than desktop. Apps are increasingly popular when it comes to interacting with online companies due to high internet costs. The growth of app usage is driven by internet penetration becoming stronger in suburban areas with low connectivity cost and affordable data packages.

Growth of urban areas

Commuter towns are becoming more attractive, due to the growth of population. Urban areas such as Ruaka, Thika, Kitengela and Ongata Rongai are seeing a rapid increase in population as the capital city – Nairobi is highly saturated. Developers are noticing individuals are more interested in second-tier areas due to price and are turning their attention to these areas, where property prices are more affordable, land is easily attainable and building costs are lower.

Growth of commercial property

Demand for commercial property is on the rise. This includes multi-use buildings, shopping malls, retail space and office space. 2016 will bring new commercial developments across the country to accommodate the growing population, as well as the growing interest of foreign organizations. These projects are beneficial for the country as they provide employment and boost the value of properties.

Foreign investment interest

In Kenya, laws are changing, with new legislations being introduced to encourage the investment in real estate.

According to EY data, foreign direct investment (FDI) was strong in 2014. Where most FDI projects were injected into real estate, hospitality and construction. According to the data, they were the fourth most attractive numbers in Africa. With the new year approaching, these numbers are expected to improve, where FDI projects in Kenya are developing new residential properties to tackle the housing deficit of 2012.

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