Highlighting the Real Estate Sector in Kenya

Real estate in Kenya is the business where no one makes losses. For the past ten years now, the real estate sector in Kenya has been escalating in value.

Land prices as well as that of houses has been a booming business especially in major cities and towns in Kenya with Nairobi at one point being vetted as the most valuable city in terms of property value in the world.

Those who have invested in the real estate sector in Kenya have not regretted their choice of investment because of the enormous profits that they have been receiving.

This is because despite the tough economic challenges that prevailed on the Kenyan market coupled with the high interest rates as well as the acts of terrorism, the sector still managed to give double profits to their owners.

This has attracted many players into the field and now the field appears to have been saturated but the prices are still steady.

According to a report on property index, the average value for properties has skyrocketed from 7.1 million shillings from the year 2000 to as high as 26.7 million shillings as at the year 2015.

Now that properties in major towns have become so expensive, where is the best place to invest in land and property and still get good returns?

According to most surveys, land prices have only moved out of the window in major towns but in other towns within the country, the prices are still manageable.

Prices of land in towns like Kitale are still within the range of five million to seven million and most investors are looking towards that direction.

Although the culture of real estate is yet to be fully absorbed by most people in such towns as Kitale, most businesses especially those dealing in large retail businesses such as supermarkets, are interested in already built apartments hence the demand for business premises in such areas.

In other towns, most institutions of higher learning have opened up branches with inadequate facilities such as classes and hostel for the students. Setting up buildings that can act as classes as well as hostels and then issuing them out to a learning institution is a lucrative business.

What is important in real estate business is first to find out what is on the fashion and what is selling. For instance, at the moment, residential premises, business buildings as well as warehouses are a hot cake.

Article by Juma Fred.