Real Estate Market in Nairobi Is Picking up slowly in 2019
Real Estate Market in Nairobi Is Picking up slowly in 2019
Nairobi, the capital of Kenya, is very popular for its growth in real estate sector and has enjoyed exponential growth of upscale clientele.
According to the performance indicators for the first quarter of 2019, the real estate market in Nairobi is making continuous improvement in 2019-2020, with more and more people starting to buy Real Estate Property in Nairobi.
The asking price for residential properties in Kenya increased by 2.4% between January and March.
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About 4 percent of Africa’s rich have chosen to search for property in Kenya. However, rents increased slightly by 1% over the same period, while land prices increased by 1.4% overall and land prices in the city’s satellite towns grew 2.4%.
The satellite towns have outperformed Nairobi’s wealthiest suburb, which experienced a flat-rate growth of 0.2 percent, indicating that in the land sector, if you want value for money then satellite towns are the place for investment.
Kenya is positioned as the third favorite destination for real estate projects after the United Kingdom and the United States.
The survey gathered the opinions of 500 private bankers and wealth advisors representing 50,000 clients with a cumulative wealth of $3 trillion.
In 2017, despite the decline in the cost of residential real estate estimated at 0.9%, interest in this market is on the rise.
The local main residential market of Kenya has regained its luster in the wake of tense political climate.
According to the World Bank, Kenya’s economy could reach 6.1% in 2019. An economy is driven in particular by a rebound in the tourism sector, a robust and growing technology industry.
⭐ The rise of commercial complexes
In terms of trade, high standard of living and increased consumer demand are contributing to the opening of modern shops and shopping malls built on the Western model.
In recent years, in cities of Kenya such as Mombasa, Kisumu and Nairobi have seen the opening of modern shopping centers, and the development of building sites ever larger markets would be expected.
Indeed, demand in this area is permanent, fueled by major international brands as well as by South African chains seeking to expand beyond their borders.
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⭐ Office rents are booming
In terms of offices, the study shows that many cities suffer from a deficiency of areas adapted to the expectations of international companies. The technological boom opening new prospects for economic diversification and attracting many companies.
This shortage has boosted rents, especially in cities where demand comes from oil and gas companies. In fact, rents for high-end buildings in Nairobi and Mombasa are among the highest in the world.
In Nairobi, Prime rents remain very high, since it is necessary to count monthly 150 US dollars per square meter, a level well above the tariffs practiced in London, New York or Hong Kong.
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⭐ High-end residential projects in Kenya
The residential market would experience a high demand for high-end volumes. Many neighborhoods, on the outskirts of major cities, are currently under construction, such as “The Mrquis” in Kileleshwa Nairobi. Such projects can support a wave of satellite towns and urban development for Kenya.
The high standard of living of the Kenyan middle class is driving demand upwards. Stores and residential dwellings must comply with ever more stringent quality standards.
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If we sum up foreign firms seeking to establish themselves on the African market with the number of African companies in full growth, we end up, in large cities of Kenya, a need for high-end buildings particularly strong.
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⭐ Satellite towns and its suburbs in Nairobi
Some of the most popular high-end housing or so-called satellite towns: Karen, Runda, Gigiri, Muthaiga, Kyuna, Kitisuru which constitute a mix of embassy residences, expatriates of all horizons and locals have lived in.
Very residential, certainly, but with the disadvantage of being away from the energetic centers of the city, if that is where your office and the school of your children are located.
The most popular towns with high real estate potential seem to be Kilimani, Kileleshwa and Westlands where residences and apartment towers merge.
Thanks to their central location, near the main shopping centers (because for shopping and social life is where it happens mainly), these are the preferred neighborhoods for a majority of foreigners.
Otherwise, there is Lavington, border area, more or less pleasant and remains at more than a reasonable distance from all shops and amenities.
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⭐ On the budget side
The price diversity is consistent with the choice of housing, whether it is a detached house or a residence, an apartment or a top floor, if it is furnished or empty, with or without Jacuzzi, pool and gym. All these options draw a fairly diverse budget grid.
We would even say that the trigger of a greedy budget lies in the choice between a detached house and a residence because it is necessary to count at its expense, in addition to the rent and the charges of water and electricity, the salary of a guard and the staff for the maintenance of green spaces, sometimes the size of a public garden!
In general, we would say that at this time the monthly rent for an empty 3-room apartment (excluding charges) starts at $ 1,000 and houses can go up to $ 5,000. As for furniture, paradoxically one will find furnished and fully-serviced housing (with household included) cheaper than apartments or empty houses.
In short, wanting to establish a logic between the quality-price ratio is a headache, since it goes from “not too logical” to “anything”.
The annual housing deficit of 200,000 units and government incentives, such as a 50% tax cut – 30% to 15% – of private developers building 100 affordable units, will continue to strengthen investor appetite in the sector of real estate annually.
Reduction of statutory taxes, such as those of the National Environmental Management Authority and the National Construction Authority, combined with the intensification of the government’s affordable housing program and improved infrastructure, will boost real estate growth in 2019.
You just let your real estate agent in Kenya, know that you are looking for a property in satellite towns of Nairobi. You can also get in touch with us here. We are one of the leading real estate developers in Kenya. Once you will find the desired property then be prepared to add the necessary Government taxes.
True or false, but the gluttony of the expatriation within Kenya knows no bounds.
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