“What would you do if you won one million shillings now?” that is the question I asked a friend of mine some days back.
“I will buy a plot, build houses in it and either sell those houses or rent them out.” That was his answer.
That got my mind spinning. Ask anyone about their plans and they will tell you, without blinking that they are planning to enter into the real estate business. People are now fully immersed into the real estate business ideas to the extent that no one wants to talk about anything else.
In almost all towns in Kenya buildings are mushrooming. Nairobi is now almost covered with buildings. Go to Westlands and see the numerous state of the art buildings being erected. Kiambu, along Mombasa Road, Mlolongo and in every corner, the business is real estate.
Currently, real estate is one of the most profitable business venture. The business has a history of bringing in profits in double digits of up to 200 percent profits. This forced many people to enter into a frenzy of buying plots and building houses in them. Most organizations such as Sacco’s and even banks have entered into the real estate business. The question, if everyone who has money is only thinking of venturing into the real estate business, what about the other sectors that massively contribute to the economy of the country?
People are turning the once fertile agricultural lands into real estate and soon we shall have no place to plant food. Agriculture is key to the economy of this country and if investors in the sector are going to neglect it for real estate then the sector is likely to suffer immensely. Kenyans should rethink of investing in other sectors too like agriculture, education, tourism and mining. For many years, the mining industry has just been left for the few with the rest of the population being left in the dark.
Has the time come for Kenyans to change their mind about real estate?