Local real estate developer, Belasi, during the week ended, announced plans of putting up a 30-unit residential project to be seated on two and a half acres, off Kenyatta Road, Juja.
The residential project, dubbed Summer Green, will entail three-bedroom bungalows with a plinth area of 135 square meters (SQM).
According to Cytonn Investments, the project will be acquired through a business model known as Partial Home Ownership (PHO), where groups of two to five investors will share the development cost, with initial contributions of 1.1 million shillings to 1.8 million shillings and each investor will acquire a home at least after four years.
The homes by Belasi are expected to have a value of 7.5 million shillings upon completion, which translates to a price per SQM of 55,556 shillings, 24.1 percent lower than the detached market average for Juja at 73,182 shillings as at 2019.
According to the Centre for Affordable Housing Finance in Africa, construction costs in Kenya continue to be among the highest in Africa at approximately 52,000 shillings per SQM in comparison to countries like South Africa with 31,000 shillings per SQM.
Thus, the responsibility is on developers to seek alternative ways of financing residential projects as well as ways of reducing development costs such as investing in areas that exhibit high demand while offering affordable land for development and requisite infrastructure, such as Juja which recorded an average price per acre of 10.1 million shillings as at 2019, in comparison to Nairobi County’s average of 216.6 million shillings per acre.