Stalemate hits property sales around Nairobi
What you need to know:
- Activity slows despite recent heavy investments in property infrastructure
- Only a few people are enquiring about availability of property to buy
- Even property located in “peaceful” regions such as Kiambu, Murang’a and Nyeri had been affected by the slump.
Real estate players have reported a sharp drop in sale of land and developed properties that has delayed return on investments for the industry.
Letas Developers managing director Patrick Muchoki said only a few people are enquiring about availability of property to buy unlike the first half of the year when they enjoyed a healthy flow of clients.
Mr Muchoki said even property located in “peaceful” regions such as Kiambu, Murang’a and Nyeri had been affected by the slump.
“People have adopted a wait-and-see attitude with many opting to remain indoors either at work or at home as they are unsure what’s next.
"Unless the political stalemate is addressed, we shall continue facing a downturn,” he said.
Stabilise
HF Development and Investment (HFDI) executive director James Karanja reported significantly reduced activity noting they were unlikely to close new transactions until after the political climate stabilises.
The firm has developments on the block including the two and three-bedroom Komarock Heights in Nairobi Eastlands area.
Enka Villa Properties managing director Meshack Muhoho, who derives about 15 per cent of his sales from the diaspora, said business activity had ground to a halt despite recent heavy investments in property infrastructure, especially roads and provision of water and electricity.
“A few people who know the importance of buying low-priced property during a crisis are coming in but the majority of people have kept away awaiting the outcome of the current political stalemate.
"Most people rely on saccos and banks for loans to buy property but many are not willing to seek such funds for fear of default,” he said.
