Property for Rent in Kenya : All About Investing in a Rental Property Kenya

It is well known that real estate investing is a sure way to create a certain wealth in Kenya. The purchase of a rental property is a quick way to get a place in the real estate sector, unlike construction, that is a time consuming process.

From the moment you decide to buy a rental property to purchase, there are many things that go into the preparation period. This article offers tips on what to look for, how to do your homework, and what you need to know.

Rent Real Estate Property In Kenya

Precautions before investing

Do not throw yourself headlong into an improvised operation at the risk of suffering from: difficulties to rent, revision of the rent down which may resulting in a loss of profitability and impact on the financing plan, etc.).

Your priority: To inform yourself well, you will look at the type of housing, the rental market, the choice of the tenant and the type of rental property in Kenya (empty or furnished), the fixing of the rent, the financing and the credit, the taxation and the taxes, not forgetting the rental management.

Also readShould I Build Or Buy A House In Kenya?   –   Selling Your House For Profit In Kenya

A well-targeted investment: You will begin by defining your goals. The idea, in fact, is what do you intend to do with your investment?

If you want to collect rents in the long term, for example, you will not choose the same housing or the same address as if you want to take back the house or the apartment to live there or to house your children in a few years.

Property for Rent in Kenya

The right strategy for a good investment

Investing in real estate is asking the right questions: Do you intend to receive a rent in the form of rents? Would you like to resume housing in a few years to make it your future principal residence?

Will you sell it to cash a surplus value? Are you planning to house your children or pass on this property?

The right targets. It is according to the answers to these questions that you will define your strategy, therefore your objectives, which will determine the location and type of accommodation.

Also readProcess To Follow For Buying A House in Kenya  –  Planning To Buy Property In Kenya

If you wish to live there for about ten years for your retirement, you will select it as if it were your main residence. For example, you can invest in a sought after main Nairobi city.

If you bet on the perception of rents and the profitability, you will opt for a commune with strong rental demand. To rent to a student imposes to choose a city which has a university pole.

Well placed, it is obliged. In all cases, choose a good location. The neighborhood must be pleasant and above all well served by public transport. The presence of local shops is a plus, as well as green spaces and security.

Do your homework before owning a rental property

 Property for Rent in Kenya

The idea of owning a rental property in Kenya can be so exciting that you might want to get in there. Still, you should not be too enthusiastic to look for the important investment you are about to make.

You should start looking for real estate investments as soon as you decide to buy a rental property. Research on the following points –

  1. Recent trends in the real estate market
  2. How much will be needed and how much you can afford
  3. In which neighborhood do you want to invest and why
  4. The type of investment property you want to buy
  5. What is the average rent in the area?
  6. Which tenant segment you want to target and why
  7. Behavior of tenants

Also readBuying House or Apartment In Kenya  –  Real Estate Property Valuation in Kenya

Rental Real Estate: Choosing a Good Location

To choose the address of your rental investment, make it as if you were going to live in the housing. You will opt for a nice neighborhood to live, well equipped and well served. If you invest in a supermarket or in a house, your tenant will be a family.

So think about the proximity of nurseries and schools. If you rent to a student, you will choose either a campus property or an apartment in the city center but connected to the university poles by public transport.

Always think about resale. If you put the good on the market, it must find quickly taker at good price, which is always easier with a good address.

In real estate jargon, this is called the depth of the market and it is an essential criterion. In a dynamic city, transactions are going well if the price is set objectively.

Also readBest Real Estate Investment Opportunities In Kenya  –  Buying Home In Kenya For First Time

In sectors that are losing steam, there is nothing obvious about the added value and goods may have a hard time selling.

A buoyant rental market. Location is not the only criterion of choice. Be sure to select a buoyant market in which tenant demand is real.

The Nairobi and other major high real estate potential towns and cities, university towns, cities with positive net migration, border areas will allow you to rent your property without difficulty and with a rent ensuring good profitability.

Also readBuying Real Estate Property in Nairobi, Kenya  –  Find Best Real Estate Agent in Kenya

Location: Conduct the investigation

Attention: In some average towns, a lot of new homes were built at where the rental supply is higher than demand and rents remain unattractive.

Screen the rental market of the chosen city. Learn about the state of supply and demand, the level and evolution of rents.

Take a look at our real estate projects in Kenya, which drain employees and potential tenants. Do you want to know more? Consult a Real Estate agent in kenya  about a good location.

The Kenyan population will more than triple over the next 40 years, this is the finding of UN-HABITAT in its 2010 report on the State of African Cities: Governance, Inequality and the Land Market. According to several studies and statistics on the question, the African continent will experience a process of very sustained population during the next decades.

A demographic growth that will inevitably be accompanied by strong urbanization of cities that has already begun elsewhere. Thus, according to this report, 400 million Africans currently live in urban areas, or 40% of the population, against 3% 50 years ago and 1.2 billion in 2050, or 60% of the population.

Africa is thus to date the continent where urban growth is the strongest. The number of city dwellers is constantly increasing (about 5% to 7% per year, a rate twice as fast as its total population). Thus, Cairo (Egypt) and Nairobi (Kenya), with 11 million inhabitants, remains the largest agglomeration.

But, it will be overtaken by Lagos, capital of Nigeria (12.4 million) in 2015, then it will turn Kinshasa (Democratic Republic of Congo), with 12.7 million inhabitants, in 2020. This strong expansion to come, pushes African cities to organize by concentrating their efforts on certain sectors such as real estate, directly linked to this future demographic explosion.

Also ReadSelling Your House For Profit In Kenya – Things To Consider

From the capital of Kenya, Nairobi to the different counties, real estate remains an attractive investment for many. Demand for housing is increasing with rising of urbanization and decentralization, but the government has not been able to meet the annual housing needs.

This has opened up business opportunities for private sector entrepreneur who buy land or Plan To Buy Property In Kenya to meet different types of tastes and budgets.

Kenya’s real estate sector remains a central part of the country’s short and long-term economic growth agenda, giving it a positive outlook. Real estate growth has been fueled by strong economic growth and infrastructure development.

According to HayeOne, one of the top Nairobi-based top real estate developers in Kenya, real estate sector across Kenya continues to grow across the country supported by high annual returns that stands at above 20 percent, high demographic, rapid urbanization at 4.3 percent annually, an expanding middle-class and improved infrastructure.

A latest report indicates that the current sentiment of real estate investors in the sector is neutral during the election period. “Investors and developers should adopt a strategy of waiting for new developments until the end of the election period,” analysts said in their January 2017 report.

Also ReadProcess To Follow For Buying A House in Kenya

Rising Land prices in Kenya

According to an analysis, land prices in Nairobi’s satellite cities rose by 21.4 percent in the third quarter of 2016, the strongest growth since 2014.

This increase is attributable to the announcement by government planned infrastructure projects, including the Standard Gauge rail commuter train and construction of the planned Western bypass in Nairobi.

Juja, Ruiru and Limuru recorded the largest gains in the third quarter of 2016, with price increases of 43.1%, 42.9% and 34.9% respectively.

These areas are suitable for investors interested in speculation or construction of residential and commercial buildings.

The opposite has occurred in the highly congested satellite cities, such as Ngong, where prices fell by 2.3%.

Land prices in the suburbs of Nairobi marginally by 1.4% as a result of road construction, such as the extension of the Outer Ring road and the completion of the south bypass.

Denholm and Lang’ata was the best-performing suburbs with prices up 9.3% and 7.7% respectively. Even with high prices, the occupancy of apartments and flats is high in these areas that offer opportunities for those looking to build for sale or rent.

Also ReadBuying House or Apartment In Kenya – Which Is Better?

The risk of overproduction

Investor demand is expected to put pressure on land prices in satellite cities of Kenya – Kitengela, Athi River, Syokimau, Ngong, Juja, Thika, among others – that could lead to higher prices.

Developments are expected to increase, which could lead to stagnant rental rates in the short and medium term. In Nairobi, small price increases are expected as investor speculation declines pending elections.

Kenyan Counties are opening up

Prices are expected to rise, driven by investor demand, as decentralization materializes.

Its subregional indices show a preference for county apartments, which accounted for about 60% of units sold during the quarter, compared with 23% and 17% for cottages and bungalows.

In a way, the apartments are more attractive to buyers because of prices and availability of amenities.

The determinants of price and purchase for houses remain the size measured by the floor area, the number of bedrooms, the bathroom and the presence of independent dwellings for staff, as well as parking and availability amenities such as water or related investments such as drilling.

Also ReadReal Estate Property Valuation in Kenya – Buy or Resale

Most buyers are looking for safe neighborhoods with adequate amenities. For example, houses in closed communities – often very expensive given the superior atmosphere associated with controlled development, security, privacy and landscape value-will dictate price fluctuations.

Similarly, the proximity of social amenities such as shopping centers, paved roads, schools, hospitals and the presence of car parks, among others, contribute significantly to the price of homes.

Demand vs price: Hot spots in Real Estate Kenya

There is a strong demand for exclusive suburbs less built than suburbs characterized by high density of development. Muthaiga leads the suburban pack with a double-digit increase in real estate asking prices (15.8%), followed by Kitisuru (14.2%) and Lang’ata (13.5%).

Single-detached homes, located mainly in low-density suburbs, recorded the best performance in 2016, recording an annual increase of 11.3% in asking prices, indicating that investors looking to take advantage of single-detached homes should look for less populated areas.

Most of these suburbs are exclusively high-end and, like other world markets, high-end areas tend to be the least affected by a stagnant economy.

Kilimani recorded the largest annual price drop of 3.5% due to the price correction of large, recently oversupplied apartments.

Also ReadWhich Are The Best Real Estate Investment Opportunities In Kenya In 2018?

Average asking prices for satellite cities increased by 1.5% in the fourth quarter of 2016 and 8.6% over the year. Similarly, rents increased only 0.2% in the fourth quarter of 2016 and 4% over the year.

Selling and leasing prices in the satellite cities in 2016 recorded the smallest annual increase since 2008, due to the economic slowdown that has resulted in a downturn in the number of transactions in these areas.

Kenya’s rural towns – New frontier for real estate developers

Kenya's rural towns - New frontier for real estate developers

High Real Estate potential suburbs in Kenya

  • Thindigua (Kiambu road),
  • Kiambu, south B, south C,
  • Kabete,
  • Komarock,
  • Imara Daima,
  • Membley,
  • Buruburu,
  • Rongai,
  • Waiyaki road (Uthiru, Regen, Kinoo, Kikuyu),
  • Mbagathi road,
  • Ngong road to Langata.

Also ReadList Of 8 Best Investment Opportunities In Kenya 2018

Upscale Suburbs

  • Kileleshwa,
  • Kilimani,
  • Lavington,
  • Westlands,
  • Spring Valley,
  • Riverside,
  • Milimani (Kisumu),
  • Milimani (Nakuru),
  • Runda,
  • Karen,
  • Park,
  • Parkways,
  • Ridgeways,
  • Muthaiga,
  • Loresho,
  • Kitisuru,
  • Adams Arcade,
  • Nyali,
  • Mountain View,
  • Nyari.

Also ReadWhy Hire A Real Estate Agent In Kenya?

High Potential Kenyan Satellite Cities

  • Athi River,
  • Mlolongo,
  • Mavoko,
  • Nakuru,
  • Ngong,
  • Ruaka,
  • Syokimau,
  • Embakasi,
  • Kahawa Wendani,
  • Thika,
  • Mtwapa,
  • Utange,
  • Kitengela,
  • Kiembeni,
  • Nyeri,
  • Likoni,
  • Eldoret,
  • Ruiru,
  • Kilifi,
  • Thika Road (Kasarani, Roysambu, Ruaraka),
  • Meru,
  • Bungoma

Also ReadHow To Find Best Real Estate Agent in Kenya?

The role of real estate agency

Real estate agencies are a kind of mandatory passage for any real estate investor looking to invest in real estate Kenya. Their mission is to give information on the apartments and property, or in case you want to buy a home in Kenya or Buying Real Estate Property in Nairobi . In many African countries, their arrival has brought order to this sector, which a few years ago was disordered. Several real estate agencies bring their expertise to the continent .

If you’re into property business then expect to make mistakes as a novice investor. But to avoid the biggest one, I compiled the worst mistakes made in specializing in real estate. Many people are unaware of the real estate investor’s mistakes. In this article we are focusing on such mistakes that can cause you a serious financial damage for the long run.

Most common Mistakes Real Estate Investors Make in kenya

Listen to the opinions of negative people so you would not make their mistakes in real estate kenya:

  • The people you will meet will all have their opinion and their words of advice to you on the real estate investment.
  • And even those who are not owners of property or real estate investors and have no real experience can advise you with fervor.
  • But for the majority, these tips are worthless.
  • They will reflect an always distorted view of reality.
  • And that often will justify their non-passage to action and to invest.
  • And for those who already have one or more experiences in real estate and who talk to you in a negative way, they will talk to you about problems and difficulties.
  • While you need to be told about solutions and results.
  • And I guarantee you, that there are people that are good at helping you.
  • It’s up to you to find them.

Major problem is the people that could give themselves the mission to stop you:

Whether by jealousy, to protect yourself, or because they are afraid to create a competitor.

Or simply because you have bad karma that day, the reasons you get negative reviews may be more than numerous.

And you have to know when you are told that what you want to do and undertake is “shit”.

Especially that some people will not go with tweezers and they could give themselves the mission to stop you.

I personally had this very unpleasant experience.

  1. You could lose your trust in yourself.
  2. Tell you that it is not possible except for the rich.
  3. Become embittered and mean to others because you have been mean to you.
  4. Never take action and never have results.

And you do not doubt, Get what you want to have.

The solution is the internet that let you connect with people who think like you:

  1. You have to know something, there is no absolute truth.
  2. There is no real estate strategy with a success rate of 100% and with 0% risk.
  3. If a knowledgeable and experienced man gives you good positive advice, you record them.
  4. If investors tell you about different ways to make money, you should register.
  5. But never take as immutable law what you have been taught and always interpret this information to adapt to your own situation.
  6. This also applies to the content that is shared with you elsewhere.
  7. One person is not the other and nobody knows everything.
  8. The strengths and desires of each can be different.
  9. And so the most interesting real estate strategies for everyone can be very different too.

The solution to the problem is much easier to solve today than it was 10 years ago.

Today thanks to the internet, you can connect with people who think like you, who eat like you and who are as crazy as you in 3 clicks.

So stop talking about your real estate projects or your dreams of financial independence to those who do not care.

The best is to talk to those who will listen to you and for that, you can already consume content of these people as you do right now.

Or go to their meetings during events and offer you privileged moments of exchange in paid formations in face-to-face.

Focus on people who have results and who are just 1 or 2 levels above you, they are accessible to record.

How to Invest in Real Estate Without Money in Kenya?

how to invest in real estate without money

Below are the reasons to make you believe that you can evolve into real estate without money

  1. Banks do not want to take all the risks.
  2. Dream sellers abound on the internet.
  3. They promise you wonders and they show you interviews of people who built an empire from scratch.
  4. I’m not going to tell you that it’s not possible, I like to believe that anything is possible.
  5. And the people in the interviews do not lie. (Well, I do not think so)

Nevertheless, more often than we believe, these people do not leave quite anything.

They have a stable and healthy financial situation.

And they sometimes have wealth and even own funds.

You have to put a minimum of raw material in the machine so that it gives you results.

And in the context of real estate investment and especially in Kenya, one of these commodities is that it takes money.

That does not mean you have to be rich. Besides what does it mean to be rich for you? Ask yourself the question and contacts us at Hayerone, to have your first real estate purchase in Kenya.

But it takes a minimum and it is true that the entry ticket is higher in real estate than for other businesses.

It also comes from sharing the risk with the banks that lend us a portion.

They do not want to take too much risk not to lose money and that’s normal.

I understand them.

In Kenya, if your tenant does not pay you the rent, you are stuck for several months having to pay all the costs and without being able to deduct anything.

So it can cost you a lot and it can quickly jeopardize your financial situation.

Banks want to be able to recover their money.

The problems which you might have to face:

  1. The infopreneurs are tempted to sell dreams on the internet
  2. Because it’s true that it’s possible and for them, it’s interesting because it attracts many more clicks.
  3. But the problem is the number of people who will actually get results in the end.
  4. You must not believe all that is too beautiful and above all too easy.
  5. I tell you very clearly, if you do not have at least a stable job and 15,000 KSh aside to invest or at least as a safety net, you take a lot of risks.
  6. And if you do not have that, everything will seem much more difficult for you, results will not be worth it.
  7. The 90% of people who get results have spend a lot of funds to get there.
  8. If you throw yourself without sufficient prerequisites, you could:
  9. Lose a lot of money even with a good investment if you have a big unexpected that you can not cash.
  10. Believe that the people who sold you these promises and these formations are dream sellers
  11. To think that you have failed (for it’s just because you have been steered towards a path that is too difficult for you)
  12. You demotivate and believe that real estate investment is not for you
  13. While of course, all this can be avoided at the base by telling you things that may not please, but that will greatly increase your chances of getting results.
  14. That is to say, it takes money to invest serenely in real estate in Kenya.
  15. Besides, you will notice that we often say ” invest in real estate” and not “create a business in real estate”.
  16. The word investing means investing money.

The solution is to analyze the elements that constitute the ideal starting situation:

So of course, there are real estate strategies that allow investing with less money.

This is the case of the seasonal rental for example which in some cases can allow you to earn money with a very low starting bet .

By renting a room in your house for example.

And it’s not the only way.

But to be sure of what you do and not to jeopardize what you are building, take guarantees and keep money.

To be certain whether the type of investment you want to achieve is right for you , always find out about the ideal prerequisites you need to have.

Here we are talking about the most suitable situation for this type of investment, such situation can be offered only at HayerOne, as we have the best real estate agents in kenya to take care of all your real estate investment requirements in Kenya.

Check Out More Blog Posts:

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

  • Kitengela,
  • Kiserian,
  • 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

[PDF]Nairobi Satellite Towns Settlement – Report

Naivasha


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.

Mombasa


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.

Kisumu


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.

July 18,2018..A good year for real estate investors. Yes, you heard it right!  Kenya is the top investment choice for both local as well as foreigner investors with the most attractive investment destinations of the times.

Mr. Kfir Rusin, EAPI (East Africa Property  Investment ) Summit Managing Director Says “Kenya has become a lightning rod for investment as both local and foreign investors have looked to diversify their investments across multiple market segments from retail, industrial, housing and office space.” – as reported in Business Today Kenya.

After experiencing a slowdown in 2017, there is optimism that the market will pick up in 2018, however. Nairobi is a key regional centre that offers good prospects for real estate investors. It is a real estate hub comprising of top notch brokers, agents & real estate developers in Kenya

Are you a keen Kenyan real estate investor looking for opportunities to invest in real estate in Kenya? In this article, we will reveal all the Real Estate Investment Opportunities you need to Venture Into Real Estate Business In Kenya.

Real Estate & Property Investment Options in Kenya

There are three major investment options in Kenya Real Estate Market 2018 are:

🎯 Buying And Selling Land For Profit In Kenya.

Buying land or Investing In Land In Kenya is not always the right investment in Kenya. If you buy a piece of land with the thought of selling it after a few years, there is no guarantee that its price will only rise with the growing years. Typically the land economics says something different.

As per thumb rule of land economics, “If you buy a piece of land and its appreciation rate is slower than the rate of inflation, then you are actually making a loss on that investment, even if you sell the land for a profit”.

Due to inadequate understanding of property market, people end up losing money by purchasing land. This is a huge investment business so a person must be aware of the stats that a location’s property market will soon decline and, therefore, avoid buying land there when the only aim of buying land is to earn profit by selling it after a few years.

🎯 Buy Land and Build property for Rent or Sale.

Building property is another property investment avenue in Kenya. Building any property like school, college, hospital or even apartments may seem a profitable investment but it requires a lot of expertise and huge capital investment. In fact, if one has the finances, one can buy land and build residential units which in future will offer higher returns when resale or to let.. This strategy is capital intensive.

🎯 Investment in R.E.I.T:

Among the three options, investing in joint venture or R.E.I.T is the best. The investor doesn’t have to physically deal with architects, quantity surveyors, structural engineers etc as in the case of buying land then developing.

Another advantage with the joint venture option is that the pooling of resources from like minded investors can help to reduce the capital required from borrowing from banks significantly, hence an easier and cost effective source of development financing.

The investor also benefits from shared risk where property and conveyancing lawyers , land surveyors and land valuers have advised on the conveyancing process , ensuring the land is clean and without any encumbrance, ready for development.

Best Real Estate Investment Opportunities In Kenya

Best Real Estate Investment Opportunities In Kenya

🏘️Low Income Housing Development –

A significant decline in supply of low to middle income housing is spotted in the Government’s plan. As per statistics, development of a million units of public rental housing is required over the next five years. This sector is undersupplied because margins remain extremely thin. If the government creates the relevant incentives to widen this margin, Low income housing could be a boom market for 2018.

🏘️Existing Commercial Properties –

A major upswing in office enquiries is therefore expected in 2018. Now that 2018 is expected to be a rebound for real estate investments therefore, businesses looking to move office are firmly adopting the “wait and see” election approach. Presently the existing commercial properties backed with impatient capital is proven to be reasonable. A right property purchase should be able to provide 12%+ yields over a 5+ year horizon.

🏘️Student Housing –

We have seen a hold back in the business potential of student accomodation in Kenya though it may yield high returns.Student housing in Kenya is now a powerful alternative asset which if developed attractive will definitely guarantee tenanting., Hence, the development of student accommodation will prove to be the next big thing in the real estate.

 

🏘️Warehousing and Factory Development –

The slow investment in the industrial sector has lead to a chronic shortage of good warehouses that has presented new opportunities for growth in the country. The increase in manufacturing will increase demand for warehouses. Long lease warehousing is one of the most attractive Real Estate investment opportunities in the continent. Thus, setting up warehouses and industries will be an indication that industrial sector could be the next frontier for growth in Kenya.

🏘️Secondary City Retail –

Nairobians now are enjoying ample options for consumers needs like supermarkets, outlets and a broad range of shopping options are available in urban cities of country, however the majority of the small towns remain undersupplied. The county retail must be customized to fit its demographics.  We have seen several untapped opportunities in the region’s secondary cities and towns to better serve consumers. Increasing urbanisation should fuel growth in Kenya’s retail sector as there are significant growth opportunities in Kenya’s second-tier cities.

Know more about best places to invest in real estate in kenya.

Don’t Miss to Check Out Our Latest Developments :

The Marquis    ⚪ The Address    ⚪ The Crescent    ⚪ The Gateway    ⚪ Elixir

Property Investment in Kenya

Kenya’s real estate sector is accelerating at a rapid pace making a substantial contribution to the GDP recorded as 13.8 per cent in 2016 rose from 12.6 in 2010 by the Kenya National Bureau of Statistics’ (KNBS) under its annual Economic Survey 2017. The construction industry grew by 9.2 per cent in 2016 from an expansion of 13.9 percent registered in 2015.

Planning to invest in Real Estate Kenya? Here is what all you need to know about, before you start:

  1. StartUp Capital
  2. Real Estate Training
  3. Property Evaluation
  4. Make the Down Payment
  5. BuildUp Equity

Let’s discuss in detail.

☀️StartUp Capital Required

Startup capital refers to the money required to start a new investment. To begin with, you have to start building up startup capital. You should start saving a fixed amount every month from your wage. Why not set up an automatic transaction of your salary to a savings account? You can also enquire loan offers for property investment in local banks.

Hence, get ready with an effective financial plan  that will enable you to contribute at least 25 percent of the down payment on the residential real estate you’re planning to invest in.

☀️Real Estate Training – Get trained

As a beginner in the real estate industry, it is necessary to be well aware of the latest Real Estate trends and opportunities available in the Kenyan Real Estate market for new investors, only then you can make a smart move. Therefore, find some well-reputed real estate investors that offer real estate seminars to help you learn more about property business and its essentials.

Besides, you can also purchase books on real estate and read more about real estate market in Kenya.

☀️Property Evaluation:

Before you invest into any property, you must know about property assessment. Hire an appraiser who has good experience of property sector.  Thus, you can seek guidance from him in evaluating the value of a particular property.

This is important because this will help you understand the financial viability of the property.

☀️Make Payment:

If the value of the property meets your standards, you can head on over to due diligence to ensure that the property you’re investing in is free from any type of encumbrances. Once verified, you can move ahead with the down payment. Once the payment is done and the property is handed over to you, this is entirely your decision to either rent the property or build it anyways.

☀️Equity:

Now, the final step is building up equity for your investment. How will you manage to build this up? Well, one of the solution is to let your property and get mortgage paid by the tenant. Equity is basically the amount of the property you own whether it is a home or just a land. It is important because if the value of home increases which means debt decreases and thus, equity again rises up and you can utilize this amount for investing in other property. This will create a foundation for a successful real estate business. But wait wait wait….Make sure while you are building it up, you definitely have contingency purposes.

 Looking for Real Estate property? Let us help you! Contact us today !!

 Visit Us/Get In Touch With Us on Facebook & Twitter.

🏙️ Want to invest in Kenya real estate in 2018?

🏘️ Need to know,  How To Invest In Kenyan Real Estate easily and in best possible way?

Most of the Kenyana are believing the real estate as the most profitable business in Kenya. Though an investment made in kenyan real estate market has its own advantages, there are certain things one needs to understand.

Like any legitimate business in Kenya, there is a high probability of getting exploited. For professional advice on property market you can contact us.

In this blog you will learn about:

☑️ Overview

🏗️🏘️ Property in Kenya | Kenyan Real Estate Investment

Let us give a brief overview on purchasing the property in Kenya:

To avoid any sort of complications, keep a check on the following things:

  • the validity of the title deed (a title search is must before making any real estate purchase).
  • zoning of the property ( it is better to be aware of zoning laws that simply specifies the areas where residential, commercial or recreational activities may take place).
  • land rates and taxes are paid or not
  • check if there are any caveats against the property or any pending disputes on ownership.

And once you are sure for the aforementioned things, check out the entire process of purchasing the property.

Nest is the financing of the land you are opting for.  In case, you are preferring a loan or mortgage for financing your property investment in Kenya, make sure you fully understand how much amount you are going to pay back.

The last step is the consideration of security and insurance. Real estate investment, as any other asset, should ideally be insured. Shop for the best property insurer.

Check online quotes for an estimate of insurance premiums you will be paying. Last, but not the least, you must know the terms and conditions, claim settlement and then buy the right insurance.

Real Estate Investment in Kenya - Things To Consider

 

🏗️🏘️ Real Estate Investment options in Kenya: 

There are three major types of property options where one can invest in Real Estate Kenya:

  • Buying a commercial property:

One of the most reliable option available for Kenyan investors is investing into a business property. Such an investment is looked upon as a more stable income source. This is because the lease agreement is for the period of not less than the five years and involves a rent increment clause over the lease period.

  • Buying a residential property:

Residential property is another property investment avenue in Kenya. One can purchase apartments, built houses or land and then construct building. The only thing is that it will be lot of expertise and is capital intensive.

  • Buying the land:

Now the most important real estate investment avenue in Kenya i.e. Land. Once you buy a land, you can do anything with it. Mostly people purchase the land and then wait for the right time to sell in order to earn higher returns. As there is a common phrase

                   Don’t wait to buy. Just Buy and Wait.

Apart from this, there are several ways to add value to your purchase. Of course, in case of real estate business, terrain is ‘KING’ Consider the terrain while buying the land. You can develop the land the way you want. Although it will include expenditure at its initial stage but definitely will end up paying you handsomely.

🏗️🏘️ How To Invest In Kenyan Real Estate? 7 Important Facts To Consider

How To Invest In Kenyan Real Estate

Now that you are aware of how to invest in Kenya Real estate and what are the options available, if you intend to venture into Real Estate business in Kenya, here are 7 important facts one must know before starting your investment journey in the country:

  1. Nothing Like Small In Real Estate Avenue:

Many of us think that a huge saving is required to invest in a real estate business which is a big misconception. People think that the money they have is too insignificant to buy a property. We would like to advise them that they should seek guidance from a real estate agent. One can lose several investment packages and opportunities to get into this business due to the obscurity of real estate market.

  1. Real Estate – NOT A GETTING RICH SCHEME:

Many of us think that a real estate business requires a huge saving which is a big misconception. People think that the money they have is too insufficient to buy a property. We would like to advise them that they should seek guidance from a real estate agent. One can lose several investment opportunities to get into this business due to the obscurity of real estate market.

  1. Never Start it as a Primary Business

It is really a bad idea to quit your present job and directly indulge yourself completely into the real estate world, especially if your job is providing the initial capital for your investment,. An initial start with the business is going to take time for ripping good results. Further, you can’t predict whether the results are going to be in favor or not. We would recommend to hire professionals to manage your investments.  Property agents are much experienced for the reason they are been into this industry from a long time and thus they can effectively handle the investments for you.

  1. Create a team of trustable and capable persons:

Having a right team is the biggest support in case of risk management. Before making any big move, they can guide you for the right decision.. You must look for following persons:

  • a property valuer,
  • a conveyancer,
  • an accredited contractor
  • a loan adviser

These are the professionals one must involve in the team. This might seem you an expensive deal but building a right team of professionals  will actually save you thousands and millions of shillings when it comes to high financial expenditures.

Real Estate Investment options in Kenya

  1. Understand the importance of location in a Real Estate Investment:

There is a famous saying for Realtors:

Buy the Worst House in the Best Neighbourhood.

What it conveys is that the importance of a property is not measured by the cost of construction when we talk about prime locations instead it is measured by the value of land where the property exists. So, while investing in a property, it is not obvious to always look for a beautifully constructed buildings or apartments. Investing in a simple establishment at a high-end locality always pays magnanimously.

  1. The 1 PERCENT Rule:

Always seek advice from your property valuers while putting up any property to let. No matter whether it is a residential apartment or a commercial building, make sure that the monthly rent of the property once lent is always more than 1 per cent of the total investment cost.  This will enable you to redeem your investment in less time.

  1. Never Love Your Property:

Most of the times when people redecorate or redesign the building or redesign, they fall in love with it. They do everything to give it an appealing look but end up paying inflated prices when they are not able to sell those buildings at a profitable price. Here is when emotions come between your business and we all know there is no place for an emotional investor in a real estate business.

Therefore, we always advise our readers to keep a hold on your feelings. Real estate is not an sentimental business. One should not always try to give visual; appeal to the building in order to fascinate the clients but look out for ways how to earn profit from any type of building.

 

🏗️🏘️ Best Places to invest in Kenyan Real Estate

The last decade has seen phenomenal investments in real estate. Projects worth billions of shillings have either been completed or are under construction.

The boom in Kenyan real estate market 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 Places To Invest In Kenya? We take 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 or those who want to buy real estate property in Nairobi.

 

Best Places To Invest In Kenya

Nairobi Satellite Towns

As far as there is a concern of real estate investments in Kenya, the Nairobi city towns including Kitengela, Kiserian, Athi River, Juja and Kangundo Road have become the attractive points for investors.  Land availability in these locations at reasonable prices is commonly the driving force for the investors..

For example, a person who bought an acre of land in 2007 for a million shillings in one of these locations would have seen his investment rise to Sh6.4 million by the beginning of this year.

Most of the Kenyans are investing in land for the future and not necessarily for current construction needs.

However, the lack of an efficient transport system in these areas repeals any gains made on the home purchase or construction.

The developers can’t build homes with the notion that everyone will be driving to work. Kenya’s 70% population still rely on buses and matatus.

Also Read – Buying Home In Kenya For First Time – Tips & Pitfalls To Avoid

Naivasha

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.

When it comes to real estate, the OLX portal lists more than 300 properties within the greater Naivasha area with prices ranging between Sh95,000 and Sh5 million an acre.

Who is unaware of OLX these days, the most popular online advertising portal all over the world. However, the most popular locations are those around Lake Naivasha commanding higher prices than the outskirts.

Also Read – List Of 8 Best Investment Opportunities In Kenya 2018

Mombasa

Despite lying on an island, Mombasa has stamped her authority as a leader in real estate development along the coast. Apart from the well known locations, the area has a growing appetite for middle and low end developments.

For example, Nyali View Park, a cluster of 144 units comprising of two and three bedroom apartments is located near City Mall, Nyali and selling between Sh3 million and Sh10 million in what could be considered a high end location. The homes are popular with first-time homeowners.

The uptake of such low-end development is a trend gaining popularity in Mombasa.

Also Read – Real Estate Property Valuation in Kenya – Buy or Resale

Kisumu

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.

The town is also experiencing the mushrooming of satellite settlements, a sign of growing housing demand following a sharp population increase.

A growing middle class and a recent upgrade of road infrastructure in the area have revived the town’s fortunes and it’s high time for small business owners to race to cash in on its strategic location.

A previous report by The World Bank mentioned Kisumu as the second best place to invest in Kenya to register a business after Mombasa but the most difficult to survive during the initial stages.

Finally, before you dive in, get some professional help and advice from a real estate developer in Kenya.


Don’t Miss to Check Out Our Latest Developments :

The Marquis    ⚪ The Address    ⚪ The Crescent    ⚪ The Gateway    ⚪ Elixir