Kenya has been one of the favorite real estate destinations attracting foreign investors. With its well-preserved natural beauty and good connectivity, it is an excellent investment in the residential or commercial sector.
If you also plan to buy real estate property in Kenya here are some things to know.
1. Choose the land
It is very important to ensure that the land is not in a risk zone (eg: flood zone, clay soil, radon emission zone). Having a soil test done prior to purchase is a good idea.
2. Look for the suitable locality
Most of us want to live in the up market, but that’s not what we can afford and it’s not where we should start. Sometimes we have to lower our expectations and go after what we can afford.
Go shopping as many times as necessary. Understand the terrain and see what is available. Do not just choose the first house you find. The next house could be a little better.
Also Read – How To Find Best Real Estate Agent in Kenya?
3. Make an “Investigation” about the Contractor
Have you ever made a major purchase, like that of a car, lightly? In general, the answer is no and you should proceed with such seriousness before deciding to buy a property in Kenya.
The contractor is another good idea (eg ask neighbors who bought a property from the same builder if they are satisfied, check on the site and license if this builder holds its license and has already been the subject of an arbitration).
4. Check the soundproofing
When buying a condominium, any occupant wants to be sure that the walls and floors are soundproofed. For this, it is generally preferable to opt for a concrete construction, for its soundproofing properties, although some innovative wooden constructions now have excellent performance in this regard.
Also Read – Fees Involved In Buying Property In Kenya
5. Consider insulation
It is obviously in your interest to make sure that the property is built to the highest standards of insulation.
This way, you will not jump to the ceiling when you receive your heating bills. To maintain good air quality in a watertight house, you should also check that the heat recovery ventilator is of good quality and has sufficient power.
6. Inspect doors and windows
Make sure you have good insulating and soundproofing doors and ensure windows are installed properly (eg, from the inside rather than the outside), that the framing is well insulated and caulked and that the inside of the double glazing contains a Low E-film that reduces thermal losses.
7. Check the building code in force
Municipalities are free to apply the building code they wish on their territory, but compliance with the latest code should ensure a better quality of construction.
8. Ensure the quality of materials used
Some contractors use flashy, cheaper materials rather than durable materials. We must be vigilant and ensure that we get a good price-quality ratio.
A quartz kitchen countertop will be more durable than a laminate or melamine countertop, while hardwood floors will also have a longer life than floating floors.
9. Engage an inspector
For the duration of the construction, you can hire an inspector, preferably a member of a professional order (architect, engineer or professional technologist), because he has insurance.
The latter will check the various stages of construction and ask the manufacturer to correct a defect, fine-tune a finish, put a more efficient insulation in the walls, etc. The builder may not like it, but you’re in charge.
Also Read – Buying Home In Kenya For First Time?
10. Acquiring a LEED Certified Property
Purchasing a LEED certified property is a bit more expensive than buying an ordinary property, but it pays off. You will live in a healthy building built with more durable materials and you will save on heating costs. In addition, you can surely sell your property more expensive.
11. Read Legal Fine Print
Before signing on the dotted line, understand the terms of payment and use a lawyer. Get the documentation you need and read it carefully. You need documents from the mortgage company, legal documents, the sales contract, the rental agreement, etc.
Gather all these documents and study them. Understand them and consult your lawyer to understand what you are buying.
You will meet a lot of people who tell you “I buy this house” and when you will ask them how much they cost, they will quickly tell you the cost, but if you ask them what is the payment plan, they have no idea.
12. Do not get caught up in the game.
Home ownership has become popular in Kenya. For this reason, many dishonest people sell ghost houses to gullible buyers.
People do not understand what is needed, so someone can tell a story and many people will believe it. So better play smart and read following tips to Buying Real Estate Property in Nairobi.
The purchase of a property should not be rushed. Sometimes you’re just not ready and sometimes it’s not the right property.
You must visit the site before you commit to purchase the property. Whether you buy it off plan or buy a house under construction or already ready, you have to see it.
If someone asks you to pay an amount to go see a house, it should be the number one red flag.
You can even go to the site without the seller, because if the seller is dishonest, you can just discover lies on the site.
13. Beware of hidden costs
When negotiating for financing, the borrower must be attentive to the actual cost of the loan. In addition to the interest rate, there are also hidden costs such as appraisal fees, legal fees and loan negotiation fees.
When you take out a mortgage Kenya, make sure you know the consequences of a fixed or variable rate mortgage.
Despite these tips, taking the plunge can be stressful. The ideal is to contact us as we want to establish a good relationship with you by providing you with the best property. You can also have a look at top real estate developers in Kenya
Check Out Flats/Apartments For Sale In Kenya – By Hayer One
Beyond the sale price of the property he covets, the buyer will have to face many other costs: notary fees, agency fees, mortgage, taxes specific to housing, condominium fees etc.
The main cost is the government’s Stamp Duty, which is 4% of the purchase price. You will also have to pay your lawyer about 1.25% of the purchase price for his role in the process. Buyers should be aware of this because most sellers tend to write the contract so that the buyer also pays the seller’s lawyer’s fees.
Therefore, buyers must be passionate about these details. If the buyers take out financing, they must take into account the evaluation costs representing 0.2% of the assessment and the 1% commitment fee to the bank.
Have all the cards in hand and build your project by getting help with our content! Let know more about the types of fees involved in buying property in kenya below.
What Fees Are Involved When Buying a Property in Kenya?
1. Notary fees
The terminology “notary fees” is not quite right because the majority of this expense is constituted by tax rights that the notary collects and returns to the Treasury.
Notary fees are borne by the person to whom the transaction benefits: the buyer.
Notary fees are subject to a mandatory fee which is the same, regardless of the place of establishment of the notary who receives the sale.
They vary according to the amount of the purchase:
the lower the amount of the purchase, the higher the costs;
conversely, the greater the amount of the purchase, the more these costs are proportionately low.
Tip to reduce the costs of notary: pay the movable property component housing (kitchen or bathroom equipped, blinds, appliances, etc.) separately from the purchase of real estate. Thus, the basis for calculating fees is lower so the notary fees decrease.
Finally, the fees of the notary are governed by decree so it is impossible to negotiate unless the notary decides to do its work for free (which can be conceived for a customer carrying out many transactions with the notary).
2. Estate agency fees
The agency has the choice when signing the mandate to sell its commission to the seller (in this case, it is included in the selling price) or the buyer.
The most common situation is when the agency fees are borne by the buyer.
Unlike notary fees, agency fees are not regulated by law and are freely negotiated between the seller and the agency.
They generally rise between 3 and 6% of the selling price.
The amount of agency fees is decreasing, that means the sale price of a luxury villa will be applied a lower percentage .
When the buyer makes an offer to buy less than the selling price and this offer is accepted by the seller, the agency will have to reduce its commission.
Note: The payment of agency fees takes place at the time of signing the deed of sale at the notary.
What if this signature never takes place? The real estate agent will not receive a commission,
however, there are ways to take legal action to collect damages.
3. The Mortgage
The majority of buyers finance their property on credit.
The buyer must repay the borrowed capital with an interest rate and ancillary costs (insurance, fees, prepayment penalties, etc).
The buyer must know that the more important his personal contribution is, the lower the interest rate.
The buyer is advised to contact a mortgage broker who will negotiate on his behalf with financial institutions.
4. Different taxes related to housing in Kenya
1. Property tax
This is an annual tax levied by the local government based on the location and value of the property. It usually represents about 1% of the property value.
2. Land tax
The land tax is a local tax whose rates vary according to the location of the land. The highest rate is 8% and applies to Nairobi.
Stamp Duty Act: The purpose of this bill is to amend the Stamp Duty Act by exempting new homeowners under the affordable housing program. The Stamp duty rates in Kenya varies between
2% and 4% on the value of the property depending on the location. The incentive will be a positive development for the new owners.
5. Condo fees
The condominium fees are due with respect to the trustee by the person who is co-owner at their due date.
An agreement between the seller and the buyer decides otherwise in the deed of sale.
If the sale occurs during a quarter, there will be prorata temporal distribution of co-ownership charges between the seller and the buyer.
Attention: this act affects only between the seller and the buyer since for the trustee it is the co-owner at the time of the call for funds which is fully liable for charges.
However, if a supplementary call or a refund takes place at the end of the financial year (once the sale has been concluded), it is the one who is the co-owner at that time who will be the sole beneficiary or the only one liable.
6. Works voted by the co-ownership
The rule is the same as for the charges of co-ownership: the work is due by the one who is co-owner at the time when the calls of funds are to be regulated.
Nothing prevents the seller and the buyer from agreeing to a different distribution.
Here is what is most commonly expected in the deed of sale:the works voted before the compromise are the responsibility of the seller;for works voted between the compromise and the authentic deed, they are the responsibility of the seller unless he gives the purchaser power to attend the general meeting and to vote in his place.
7. Does the acquirer still have to pay these fees?
The buyer is obliged to pay the notary fees:
The notary may also refuse to close the sale until the purchaser has paid the amount of the provision on notary fees.
This sum must be paid by the purchaser at the stage of the preliminary contract and is deducted from the notary fees.
As for real estate agency fees, the buyer, if he does not pay them, can be worried only in one hypothesis: when he has concluded a mandate with the real estate agency. (This is the case when the buyer has given a mandate to the real estate property development company in kenya to research, negotiate and facilitate the acquisition of a property.)
Also Read – Top Real Estate Companies In Kenya
Since 2000 real estate in Kenya has been rising steadily, as more and more Kenyans are interested in owning land and real estate. This boom has led to the growth of many real estate companies and real estate professionals. You will always get help for any type of property you want to buy, whether it is a residential or commercial property.
A diversified and experienced management team, with extensive experience in the Kenyan real estate market, manages most properties in Kenya. Many top real estate companies in Kenya specialize in real estate in large cities, some with branches in rural Kenya. These property development companies are known for their portfolio of land, a sale of land, apartments and home ownership.
For someone who ventures into the Kenyan market, especially as a buyer, it is not enough to look for real estate in Nairobi or Kenya online. This is just a step in the right direction, but knowing who to contact every time you need an apartment will make your job easier.
Here is a List of top real estate property Developers in Kenya you can call anywhere in Kenya to help you find a home.
- Hayer One Ltd
- Gakuyo Real Estate
- Azizi Realtors
- Llyod Masika
- Villa Care Ltd
- Suraya Property Group
- Hass Consult Ltd
- Optiven enterprise ltd Kenya
- Dinara Developers
- Myspace Properties Kenya
1. Hayer One Ltd
Hayer One, one of the top upcoming Real Estate Property development company in Kenya in 2018, was created with a clear vision of providing high quality and personalized services to individuals, private sector companies and government clients in Kenya.
If you are a potential buyer and looking for a house or apartment, or need help in buying real estate in Nairobi, then you should visit Hayer One, a property management company with the best real estate agent in Kenya.
The mission of the Hayer One group is simple. Believe that the fastest way to succeed is to help others. To fulfill this mission, they develop, build and ensure ownership. But more than real estate developers in Kenya, the Hayer One team is an emotion developer for many families.
Don’t Miss to Check Out Our Latest Developments :
2. Gakuyo Real Estate
Real estate Gakuyo too represents a unique opportunity for the investor in Kenya. You get a double benefit when you invest with Gakuyo. The company gives you the opportunity to own land and invest in agribusiness projects, allowing you to earn money as soon as the products are harvested.
Gakuyo real estate agents, who promise good value, manage this lucrative business. The project’s products are sold in the closest markets in Makongeni and Thika, which means that the project owners are guaranteed to make quick money once they have bought the land.
3. Azizi Realtors
Azizi Realtors was created to offer professional real estate consulting services by creating synergies in operational real estate through integrity, transparency and speed of service delivery.
The company’s executives and senior executives have a combined total experience of more than 30 years in real estate sales, leasing, property management and real estate investment consulting.
The company specializes in prime properties in Nairobi and the rest of the country.
4. Llyod Masika
Lloyd Masika Limited is one of the leading real estate agencies in Kenya and is registered. He provides professional valuation and real estate services in Kenya. Created since 1979, it is structured in three main departments, complementary in the provision of services.
5. Villa Care Ltd
A company that owns some of the best real estate agents in Kenya. It focuses on providing quality, customized and customized services to clients. The fast and steady growth of the company ensures that you deal with the best in the industry.
6. Suraya Property Group
Suraya Property Group Ltd is a real estate company created in 2006 by Pete and Sue Muraya. Suraya Property aims to become the leading real estate development company in Africa by creating lifestyles that change the way people LIVE, WORK and PLAY through innovative, environmentally friendly and affordable developments.
7. Hass Consult Ltd
It is one of the top real estate developers in Nairobi whose impact is felt in Kenya since its creation in 1992. The company manages a number of real estate services, including consulting, sales, rental and management of commercial and residential buildings.
8. Optiven enterprise ltd Kenya
This is a reliable real estate agency in Kenya. The company is known for locating prime properties in Kenya. If you are looking for a place to invest, especially in the purchase of land, contact the team. Optiven offers customers the best deals at affordable and reasonable rates.
The projects proposed by Optiven are often futuristic and aim to help investors get a quick return on their money once they are launched. Strategic locations close to amenities often characterize properties, but their cost and payment plan are unbeatable.
9. Dinara Developers
Over the years, Dinara Developers has become a company offering the development of affordable and quality housing.
Outside of Dinara Developers selling land; purchase large parcels of land and subdivide them for sale to individuals; they also add value to the land before the sale.
10. Myspace Properties Kenya
Myspace Properties is a good choice when it comes to immersing yourself in real estate kenya, development and the housing sector in Kenya. They aim to provide the best services and respond to Kenya’s real estate boom, specifically in Mombasa, benefiting buyers, investors, owners and developers to meet their needs.
As the real estate investment in Kenya continue to grow. The Top Real Estate Companies in Kenya mentioned above can be a guide for beginners. Young people are acquiring land and property, which means that this industry is growing more and more.
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Location, quality, expenses, resale: as many criteria to identify when choosing between a house or an apartment in Kenya. Our tips for successful purchase of real estate Kenya.
Should you choose an apartment or a house when you buy your residence? The answer comes from your personal taste.
The criteria for buying the best residence
To determine the best residence between home and apartment, you must first know what are the criteria to follow. There is more than a dozen, certainly as important as each other, but not having the same value, however. Therefore it is necessary before choosing what type of residence, to consider only the most relevant criteria. Even if, the other criteria remain interesting as they generally result from those which you will have retained. So do not neglect them. Here are some criteria to help you:
What are the difference in prices of house or apartment in kenya?
The apartment. Its price depends on the address, the state of housing, its surface. In the old, the envelope that you spend on the work will be less important than in the house. Another important point: you have to budget the expenses of co-ownership. Transfer taxes and other ancillary costs are calculated as a percentage of the price. These expenses are the responsibility of the buyer. In this area, comparing apartment and house makes little sense.
The House. The price is calculated according to the same criteria as that of the apartment, naturally taking into account the specifications of the house (distance from urbanized areas, size of the garden, presence of a swimming pool, etc.). Transfer duties and ancillary costs are fixed in the same way as for apartments.
What to check before buying
- The location (city, neighborhood, situation in the building, orientation, etc.).
- Urban planning projects, new services, etc.
- The quality and condition of the accommodation. The work to be planned and therefore budgeted.
- The technical diagnostics file.
- The co-ownership regulations, the distribution of expenses and their amount, which was voted and paid by the co-owners.
- he quality of the Internet connection.
- Local taxes on apartments in Nairobi.
The location (city district, proximity to services, distances to travel daily, etc.).
The quality and condition of the accommodation, its equipment. The work to be planned (and therefore budgeted).
- The amount of charges (heating, water, etc.).
- The quality of the Internet connection.
- Town planning rules applicable to the house and the land, easements that can encumber the property (in town hall).
- In subdivision, bylaw and specifications. The regulations for development of houses.
Opt to buy an apartment in Kenya
There are several types of real estate (furnished studios, apartment, house, etc.) on which an investment can be made. The most important to better choose the property on which you will invest is to take into account the important criteria noted above. To this end, if buying an apartment seems less affordable than buying a studio located in an equivalent area, in terms of profitability, the apartment, however, offers assets that are not necessarily found in a studio.
Indeed, apartment tenants are more stable.
This shelters you from rental holidays that can mean lost income for your investment. With apartments, there is little risk of property degradation as tenants tend to stay longer. They are therefore interested in taking good care of their homes. Another advantage of choosing to invest in an apartment is that it is usually more likely to be rented to many, and therefore, there is a small risk of rent unpaid for you.
However, before buying an apartment in kenya, you must make sure that its profitability is good. Often, it is found that the profitability of a smaller dwelling is greater than that of a dwelling having a large area, and for apartments, it is possible to obtain a rental yield of at least 5%.
In addition to the advantages mentioned above, buying an apartment has certain advantages that must be emphasized:
- The purchase price of the apartment is not too high . Everything will depend on the country in which you decided to invest in a rental apartment, cities, urban areas, etc. Prices will vary according to these criteria and will be greater or less important depending on these criteria;
- Depending on the level of standing , the apartment in which you will invest will be housed in a building with pleasant and diverse common areas (tennis courts, gym and gym, swimming pool, garden, etc.).
Buying an apartment in kenya does not only have positive aspects. You will face some constraints, here are some of them:
- You should participate in the condo fees ;
- It is not always easy for many to live in co-ownership, and so it will be a little difficult to find good tenants who respect the collective environment ;
- The apartments experience a rotation of tenants stronger than that of houses for example. While students and young couples will be more flattered by apartment living, families will tend to enjoy the comforts of home. Families are known to move less than students and young couples.
Opt to Buy a house in Kenya
Studies show that 80% of Kenyan people prefer to live in a house. The same is true for tenants, who in many cases solicit this type of property. Every year, no less than 100,000 families in France are looking for a house to rent. However, demand remains higher than supply, to the point where we consider that to reverse the trend, we must build 15,000 homes each year for 10 years to cover all needs. It is enough that the houses are located in an attractive location, and that the prices of the rents practiced on these correspond to the market price, to rent them with much to facilitate.
From this point of view, buying a house rather than an apartment would be more profitable and beneficial for the buyer.
Buying a house brings stability
For those who invest in a house, which is owner-lessor , to rent his house will offer him an important peace of mind. For rented houses, tenants usually stay there for an average of 80 months, while for rented apartments, this trend is not as important (30 to 40 months). This is great news for your investment, because in this case, rents will be perceived with more regularity, not to mention that rental reports are also more peaceful and healthy.
There is less risk of unpaid rents for rental homes. Houses appear as homes in which families live, for the sake of stability and serenity, they will be more willing to pay their rents with great rigor, which is a good thing for you as an investor. Moreover, families will appropriate the property over time, and because they maintain it properly, the charges will be lower than those of an apartment for example.
For a house, the rental yield will vary around 3 to 5% in Kenya. Buying a house brings a lot of stability and security . It is a type of property particularly appreciated, and one comes out necessarily satisfied as an investor.
Just as it is also the case with the apartment, buying a home also has some disadvantages. Among these, we can note:
- The high cost of acquiring the good or the ticket of entry on the market ;
- For this type of real estate investment, there are more maintenance costs to bear;
- There is also very little or almost no private green space with a house.
Kenya Real Estate Market Analysis
Population and household data allow you to quantify the current size of the market and extrapolate future growth. The population is defined as all people living in a geographical area (ethnicity, income and age wise). Households include one or more persons living together in the same dwelling, regardless of their relationship (this includes all occupied dwellings.) Households can be classified by size, composition or stage in the family’s life cycle. By a recent data analysis of Kenyan real estate dominant by:
- Indigenous Kenyan of Age Band: 45 to 55 years.
- 70% of these Kenyan citizens are taking interest in real estate investment.
- This real estate boom stated in the Kilimani, Milimani, Kileleshwa, Westland etc.
- Citizens with the salary of Keshs.0.35m to Kshs.0.4m p.m are taking more interest in the Kenyan real estate whether they are Asian or other immigrants.
Above given demographical data reveals information regarding the interest of people in Kenyan real estate. Analysis of overall household and population growth provides a “big picture” of potential demand in the retail sector in Kenya.
The real estate market in Kenya considered very profitable and lucrative registered the arrival of several investors, whether public or private, local or foreign. For the construction of social housing or luxury apartments and private through shopping centers, hotel complexes etc. What seems risky to today will pay dividends in the long run…at least the numbers suggest so.
To know which real estate investment in Kenya is the best between a house and an apartment, several criteria of appreciation must be taken into account. These criteria apply to all types of real estate. House and apartment offer reasons to invest in terms of their advantages, but also their disadvantages. However, it is possible that your financial abilities come into play to favor one over the other. Keeping in mind all scenarios you must find yourself a best real estate agent in Kenya. Else feel free to consult us and our property developers in kenya will help you in making an ideal decision.
Check Out Flats/Apartments For Sale In Kenya – By HayerOne
- Real Estate Property Valuation in Kenya – Buy or Resale
- Buying Real Estate Property in Nairobi, Kenya – 2018 Guide
- Which Are The Best Real Estate Investment Opportunities In Kenya In 2018?
Finding a real estate property is a big challenge for every home seeker. To begin with, a real estate agent is the essence of home buying. He can help you buy the right property with his years of experience and knowledge in property search and sale.
Real estate agent in Kenya
If you are a potential home buyer and looking for an agent to help you buy real estate property in Nairobi, here are some important tips you must take care of while looking for a Property Management Company or a real estate agent in Kenya:
⚪ Ask for References:
We all have one or more friends who recently purchased a new home. They will be having good links with their agents. You can get references of one or more agents and fix an appointment to better know them. Try to find out how long they have been into this profession.
Ask for their area of expertise. You must know how your agent will handle their situation in a bidding war. In addition to this, it is essential to know about his reputation in the real estate market in Kenya.
If the agent is a renowned personality, check on internet if the person is involved in any of fraudulent activity.
⚪ Know Their Availability:
Purchasing a new home takes a lot of research so make sure you give proper time to your biggest investment Start with finding an agent that can manage himself to do real research work Commonly, some agents work with ‘N’ number of clients due to which they need to limit their flexibility and align this job to few hours. This may result in wastage of time and efforts. Therefore, go for an agent that has a team of experts working under him so that they can allocate proper time towards your specific needs and find a dream home for you and your family.
⚪ Give Time To Your Agent:
Finding an agent doesn’t mean you hand over all your job to one person and sit relaxed waiting for a property. One has to understand his or her agent and know how to assist him. This can be accomplished by conducting meetings twice a week and a regular phone call to check the status of progress. Ask if you can help the agent in any possible way.
⚪ A Right Real Estate Agent
Listens to You: Make sure your agent is an active listener. This is what every home buyer is selling in his or her agent. Make a wish-list defining what you are looking for in your property – whether a luxury apartment or a reasonable property at a prime location. Tell them everything about your idea of planning and budget and then leave things on them. Let them find a property close to your expectations. See if your agent even remembers what you shared with them. If yes, you have made a perfect choice. If not, keep looking for agent.
⚪ Test Their Knowledge:
This is the most important aspect and plays a big role in finding right property. Do the agent have answers to your property related queries? What if you need to chase them to get an answer? A quality agent should be able to quickly prove you with the entire information like neighborhoods, general price ranges, nearby businesses, and so on. If an agent cannot provide specific details, you should look for someone who knows it better.
⚪ Verify Your Agent’s License:
Of Course, we all want a trust-able person to take over this responsibility of searching property at a prime location. There are some licensed agents in every area. You can prepare a list of real estate agents in kenya online and reach out to them. Meet these agents one by one. Ask them every necessary questions to know what their focus is in the real estate industry of Kenya.
⚪ Find a localised agent:
We’d recommend you to find an agent that lives nearby the area you’re looking property in. He will be aware of the best neighborhoods and trends. A local agent helps you search property with all primary amenities like all necessary shops, school, college, hospital are at commutable distance. This is actually how a real estate agent works.
Also Read – Real Estate Market Boom In Kenya 2018
⚪ Ask your friends and families for referrals:
Ask a friend or any family member to know who are likely to give you honest assessments of their experience with a particular agent. It’s not recommended that you choose any agent only because your friend suggested. There can be a difference between what your friend bought and what you’re expecting.This way, you’ll get a sense if the agent has any major flaws that would be a deal breaker for you.
⚪ Loyalty Factor:
It clearly means that the real estate agent must think about buyer’s best purchase over their own benefits. He should be willing to sacrifice his own commission for client’s interest. An agent should be loyal to his client whether a buyer or a seller. He should not try to influence his client to pay more or spend less for the sake of agent’s own personal gain.
Do What Your Heart Says:
People can usually realize if they like someone or not. So, when you meet the agents, this is completely up to your instincts to choose a person or not. A realtor should be a reliable and trustworthy person. So, if you realize that the agent seems like the salesman type, never choose such a person. They are most likely to be interested in their commission than your best deal.
If you are willing to purchase a residential property or you are a potential homebuyer searching for a good property at best price, check out our website.
From designed to the end finishing, we ensure that our properties meet your expectations giving you peace of mind and a sense of security.
We are the regions first real estate development company in Kenya that is aiming to deliver luxury & lifestyle properties under amazing mortgage off plan purchase offers.
Want to know more about HayerOne – One Of The Leading Real Estate Developers In Kenya
Flats/Apartments and commercial properties for sale and for rent in and around Kenya. Discover our range of properties. Don’t Miss to Check Out Our Latest Developments :
The expected charges of construction plans that are approved by Nairobi City County in 2017 between January to May cut-price to Sh105.6 billion from Sh126.3 billion in last year which has been reported by the Kenya National Bureau of Statistics (KNBS). However, many assume that it will speed up and went down faster once the election-related activities end. (more…)
The last decade has seen phenomenal investments in real estate. Projects worth billions of shillings have either been completed or are under construction.
The real estate market boom in kenya has not escaped the notice of international players who have found the country to be ideal for their investments.
So, which are some which are some of the best areas or best investment opportunities in Kenya to be looking at?
Lets takes a look at the most preferred hotspots for real estate developers in Kenya with an eye on mid level to lower segments of the market.
Nairobi Satellite Towns
As far as there is a concern of real estate investments in Kenya, the Nairobi city towns including
- Athi River,
- Juja and
- Kangundo Road
These have become the attractive points for investors in Nairobi.
Land availability in these locations at reasonable prices is commonly the driving force for the investors. To know more read our Real Estate Property in Nairobi Buying Guide
The Rift Valley region has been attracting high-end developers. Naivasha is a popular tourist attraction with a scenic landscape, wildlife parks and a lake popular with holidaymakers.
These features have put the once dusty town on the global property radar.
Despite lying on an island, Mombasa has stamped her authority as a leader in real estate development along the coast.
These homes are popular with first-time homeowners.
The uptake of such low-end development is a trend gaining popularity in Mombasa.
This lakeside city has seen unprecedented development within the last five years. Like Nairobi, the modern real estate trend in Kisumu is to move away from the city’s hub to the outskirts.
Coupled with its strategic location in East Africa, Kisumu City has witnessed an influx of investments as people rush to benefit from various opportunities.
Nairobi is a different residential market altogether. Being a fast-growing melting pot and main regional hub with a strong economy, Nairobi attracts international corporations who are looking to buy real estate property in Nairobi, Kenya to set up their headquarters in Africa.
The most rapidly growing sectors tapping into new wealth are:
- FMCG (fast moving consumer goods)
- hotel industry
- technology industry
- Residential sector
Presently, the Kenyan capital Nairobi is on the radar of many high net worth investors, as reported by the Knight Frank Wealth Report 2017.
Here are the growth distribution stats of Kenya:
- 4% – look to own homes in Kenya
- 63% express interest in Kenyan property,
- About 5% likely to invest in homes in Kenya
As a whole, the country is amongst the top five most popular second home locations for Africa’s super-rich people. However, affordability is still a concern for the locals in the market,
In a country of 48 million people, less than 30,000 have mortgages and this lack of liquidity in the Kenyan property market is a major obstacle. There is optimism that the market will pick up in 2018, however. Nairobi continues to be the key regional center that offers good prospects for real estate investors.
Driving force behind the Nation:
From conventional estates to contemporary villas facilitated with all amenities – what is driving this growing trend and how are developers staying ahead of these changing behaviors and perspectives?
Real estate investment in Kenya has become the prime approach by investors when it comes to investing the wealth in Kenya. Their current focus is on locations that offer personal security, the best education for their children, luxurious lifestyle and the greatest opportunities for capital appreciation.
Want to Buy Property in Kenya?
Currently, Kenyan real estate property buying behavior has shifted to high-end villas that are designed and built to world-class standards. We have prioritized the needs of each homeowner while looking for buying Property in Kenya :
- an increasingly popular location choice
- a nearby school, colleges, and hospitals etc.
- renowned restaurants
- best-in-class shopping malls
- golf & Country Club
- nearby private leisure facilities.
- pool and gym
By bringing something new to the market, one can attract high net worth domestic and international buyers,
🏘️ Market resilience
There are certain factors leading us to believe that the real estate market in Kenya has become more mature, resilient and an ideal investment destination.
Let us describe in detail.
🏘️ Rental growth in Kenya: An oversupply of prime properties for rent is the reason behind the weaker prime rental growth. This has given more leverage to the tenants to negotiate on the price of the property with landlords. A dramatic decline of -2.8% in residential rents have been seen in Nairobi during the first half of 2017 which is less than -3.2% analyzed in the first half of 2016. But we expect the prime market to evolve as a mature market in the first half of 2018.
🏘️ Sales: The prices of Prime residential homes increased by 0.9% over the first nine months of 2017. The prevailing market conditions, coupled with the already high capital values of prime residential homes have however resulted in low transaction volumes.
Previously there was a dropdown of about 1.0% in the first half of 2016. In the latter half, most financial institutions become unwilling to lend money to the customers due to the introduction of a higher interest rate.
Check Out Real Estate Properties For Sale In Kenya – By HayerOne
According to the newest trend in the Kenyan Real Estate, the prime focus of lenders are corporate borrowers and instead of lending money to individuals, they are investing in government bonds. This trend has continued into the second half of 2017. However, despite the slowdown in activity, we believe transactional activity will gain momentum in 2018 as the market stabilizes.
According to the newest trend in the Real Estate market, the prime focus of lenders are corporate borrowers and instead of lending money to individuals, they are investing in government bonds. This trend has continued into the second half of 2017. However, despite the slowdown in GDP, we believe transactional activity will gain momentum in 2018 as the market stabilizes.
🏘️ GDP: Kenya’s proposed GDP growth rate is 5.8% in 2018 which is significantly above Sub-Saharan Africa’s calculated rate of 3.5%, making it an ideal location for local and international investors.
🏘️ Rapid Urbanization: Urbanization has been a significant factor in the development of the country with a growth rate of 4.3% per annum versus a global average of 2.0%. The dominant parameters for urban growth is an expanding middle class and positive demographics such as
high population growth at 2.6% per annum against a Sub-Saharan Africa an average of 2.3%.
Process Of buying real estate property in Kenya:
Thinking of buying real estate property in Kenya? Our step-by-step guide will take you through some of the key considerations.
🏘️ Finding a suitable property: Typically, the procedure begins when the purchaser starts looking for a suitable property. List out the services given by different reputable real estate firm in identifying a suitable property. Once you enlist all the property agents or top real estate developers in Kenya, visit their websites to make sure if they fulfill all your requirements. to visit and assess the real estate to ensure that:
- It actually exists
- Check out the physical location and nearby boundaries.
- It meets your needs and expectations such as its location, size, amenities and access to infrastructure
- Its conditions are favorable and worth in investment.
Note: A viewing fee is charged when visiting properties for sale that vary by type and size.
Now that you are all satisfied with the criteria, offer them make a formal offer or expression of interest.
🏘️ Due Diligence: After the vendor accepts the offer, buyer should conduct due diligence to verify the ownership and other material aspects pertaining to the property and documentation etc. This is very important to verify that the said owner is truly the titleholder of the property.
- To carry out the search, you are required by law to file a copy of the title deed and a search application form and lodge it at the registry.
- The charges for requisite search are Ksh 500.
- Land registry obtains the results within 2-3 days.
As a result, you will come to know:
- The registered title holder of the property
- Property size
- Any pending issues registered against the property such as court orders, caveats and prohibitions, etc.
On the other side, the vendor also conducts due diligence on the buyer. If the due diligence proves to be successful, both the parties instruct their advocates to proceed to the legal work.
🏘️ Legal Contract: The contract procedure very slightly based on the type of property , whether it is a ready-to-move in house, land, or an off-plan property. In general, the buyer pays the deposit in order to complete the transaction within the closure period. A;though the closure period is normally 90 days i.e. 3 months from the date of signing the sale agreement, parties can mutually decide any closure period that suits them.
In the end, buyers pay a percentage of the purchase price in equal installments until the project is completed.
🏘️ Sale Agreement: As soon as the agreement is signed by both the parties,
the deal becomes legally binding and enforceable under the law of contract. The
buyer is required to pay a deposit of at least 10% of the purchase price (or other amount as may be agreed by both parties) upon signing the agreement. In the presence of legal team, both parties discuss about the negotiations on the terms of sale. This discussion entails:
- Negotiations on the price of property and terms of payment.
- 10% of the total amount is paid upfront as down payment and the balance is paid when the sale transaction is complete.
- Agreement of terms by both parties set ground for preparation of a sale agreement by the seller’s advocate, who then seeks approval from the seller.
A sale agreement contains:
- Terms of sale
- Purchase price
- Terms of payment
- Payment completion period
- Completion documents that facilitate the property transfer
- Law Society Conditions of Sale are often included
When the buyer and seller, both accept the sale agreement, the procedure is executed with the signatures of both of them. Finally, the deposit is handed over to the seller’s advocate as stakeholders pending completion of the transaction in accordance with the terms of the sale agreement.
🏘️ Completion: On the completion date, buyer is required to pay the balance amount of the purchase price in exchange for the completion documents of the property from the seller.
As the buyers receives the completion document, they make arranges for Stamp Duty. A stamp duty of about KSH 200 is then obtained from lands office to ensure that in case of a dispute, the signed documents are admissible to court. And subsequently stamping of transfer documents. Thereafter, they proceed to lodge the property for registration in favor of the buyer.
🏘️ Transfer to Property: After the registration the process, the seller’s advocate is legally permitted to release the full proceeds of the sale to the seller. Consequently, the buyer is officially handed over possession of the property and becomes the new legal owner. The argument for this is based on the fact that the seller’s lawyer does registration for all the leases on behalf of the buyer.
The seller is responsible for acquiring every requisite completion document needed to effect property registration to the buyer.
The buyer is then liable for the stamp duty fees payable to the Kenya Revenue Authority. The fee is on a scale capped at a maximum of 3% of the property’s value.
The seller must apply for property valuation by lodging signed valuation for stamp duty form and transfer of property form to the Land Office.
A stamp duty declaration, assessment and pay-in slip is then filled at Lands Office.
🏘️ Registration: When the buyer obtains the registered property transfer, the law advises verifying registration of the same by conducting a property search. Buyers are generally
responsible for the cost of registration of titles in their name(s).
Now the property is legally owned by the buyer so he can reconstruct it or rent it or whatever he wants.
Further Reading –