The Kenya real estate market has witnessed significant growth based on the Kenyan National Bureau of statistics 2016 economic survey that said the country’s Gross Domestic Product had expanded by 5.6 per cent in 2015.
Besides agriculture, finance and financial, KNBS said, “Construction recorded the fastest growth of 13.6 per cent in 2015 compared to 13.1 per cent in 2014. Growth in construction activities was mainly driven by the ongoing public infrastructure development coupled with the resilient private sector’s expansion in the real estate sector. “
On the other hand, Central Bank of Kenya is optimistic that the performance of the economy remains strong, and they project a 6 percent growth this year with an optimistic private sector that is being supported by a macroeconomic stability, public infrastructure investment and the recovering tourism sector according to the MPC Market Perception Survey conducted in May 2016.
Cytonn Investments, an independent investments management company says the real estate sector contributes to 9 percent of Kenya’s GDP and has consistently outperformed other asset classes in the last 5 years, generating returns of 25 percent per year, compared to an average of 10 percent per year in the traditional asset classes.
Looking at the positive outlook in the industry, the Kenyan Diaspora Community are set to benefit more from the real estate sector with increasing remittances from the same community in January 2016 having increased by 19.9 percent to USD 137.5 million compared to USD 114.6 million in January 2015.
Nairobi-based Edenville Properties is providing an avenue where the Kenyans in diaspora can invest in a high-return, low-risk sector through its 35 One-Bedroom Houses and 5 Bedsitter Studio Houses tenant purchase scheme in Kitengela Central Business District.
Cytonn Investment ranks Kitengela as an area for Median Household Income with Mortgages relatively affordable with an Index of 91.
Therefore, one may choose cash purchase or a tenant purchase arrangement that helps home buyers who cannot raise monthly payments required by mortgage lenders.
The tastefully finished suites will be completed end of this month.
If you need a one bedroom apartment, you can pay a one payoff price of 29,500 USD. If you need to own a studio unit, then you can pay a one-off price of 19,500 USD. There is good news though, you can pay in instalments at an interest of 12 percent per annum in 360 months.
Once acquired, the return on investment on the property if rent out is between 150 USD to 200 USD respectively.
Kitengela town is located in Kajiado County just 30 kilometers south of Nairobi. The town is part of the Nairobi Metropolitan Area.
Near Kitengela town is the Maasai Ostrich Park, a fairly popular tourist destination 7 km off the Nairobi – Arusha road (A104 road). It is also a place where Jockeys train for Ostrich racing.