June 21, 2024

Jocuri

Mad about real estate

Kenya Real Estate market solid

For months now leading Real Estate and financial experts have challenged the doom and gloom outlook, saying the Kenyan Real Estate market remains resilient. Could they just have managed to talk us out of a serious fall in property values. Misinformation about property values dampening consumer confidence, but prices were not actually falling.  Rising unemployment rates do not necessarily have a negative impact on values as many prime areas have actually risen. Increasing unemployment rates are often cited as a major factor influencing waning property sales and values, but this does not necessarily spell bad news for Kenyan Real Estate. To the contrary, Kenyans tend not to be so indebted to the banks and mortgage institutions, so the sector as a whole is not exposed.

Fundamentals never change long term

Today, many investors are looking back at previous booms and saying that was the ideal time to buy.  The truth is, Kenyan Real Estate market fundamentals are just as strong, if not better, today than they were in years gone by. Some analysts had made extreme predictions about downward trends in property values, but six month on nothing much has changed. Most now agree that the Kenyan Real Estate sector is experiencing a slow down but that does not amount to a fall or crash. In fact compared to other countries around the world we are one of the few success cases, Australia being another.

Kenya the place to be during the global recession

You would not want to be facing the global recession in any other country. The tight supply of Real Estate in many areas of Nairobi has helped ensure solid demand as consumer confidence increases. Kenyan market is comparatively secure as it is a relatively new housing market and is likely to remain undersupplied for the foreseeable future. A question mark remains over how many new apartments remain unsold or vacant but developers continue to build and the trend seems to not be abating. A slight shift to low cost affordable housing for lower income Kenyans is actually stimulating the sector. These tend to be appearing on the outskirts of Nairobi, Thika, Kingelela and such. By offer prospective buyers a less expensive lifestyle whilst retaining space and build quality demand can be sustained. The switch is also appealing to young families who could not afford the upper class apartments that dominated the market. Flame Tree Park – Thika is a perfect example of how developers and investors know what’s happening in Nairobi. The change to out of town fits with the current economic climate.