- Homeowners are investing in Kitengela due to the availability of social amenities such as good schools, shopping malls and hospitals.
- The government needs to work hand in hand with private sector industry players in order to propel the real estate sector in Kenya.
- One major focus for 2019 is affordable housing - which will provide low-cost housing to both low and middle-class income earners.
After reading this article, you’ll wish you had bought a town house in Kitengela or an apartment in Ruaka back in 2016, seeing that the value of property in these areas continues to rise.
For those who did, 2019 is the year they’ll reap their investments greatly, and we have the statistics to prove it.
According to BuyRentKenya.com CEO Lizzie Costabir, there is a 45 per cent increase in the ratio of property seekers to property listings, implying that there is increased demand and restricted supply.
A report released by the company that focused on three-bedroom apartments and town houses for rent and for sale in the top suburbs in Nairobi and the emerging towns shows the trends.
Rental prices in Lavington went up by eight per cent.
Because of this rise, houses remain vacant for long periods, forcing investors to provide short-term occupancy.
The story is similar for Westlands, where the prices went up by three per cent, from Sh150,000 to Sh160,000, over the past three years.
Westlands is home to major hotel brands which host conferences and meetings, and which attract expatriates.
We have seen growth in the middle and working classes, with more high-income earners choosing to live close to the city centre.
Rental prices in Ruaka grew by three per cent over the last three years. Ruaka has grown because it is home to the biggest mall in East Africa, Two Rivers, as well as Rosslyn Riviera, and Village Market.
It is also located next to the UN offices. Demand for housing in this satellite town continues to grow from the construction of the Western Bypass, which makes transportation easier and faster into the city centre.
In years to come, we expect to see high-end houses and other property types like offices and retail stores coming up in the area.
There was an increased demand for housing in Syokimau. With its proximity to Jomo Kenyatta International Airport, access to Mombasa Road and the train network, Syokimau is attracting both homeowners and developers.
In Kitengela, the price of an apartment for sale increased by three per cent over the past three years while that of town houses was up by 11 per cent.
With the average price of an apartment being Sh8 million, it is actually cheaper to buy an apartment in Kitengela in 2019 against the predicted Sh9.6 million, according to the inflation rates from the Central Bank of Kenya.
Homeowners are investing in Kitengela due to the availability of social amenities such as good schools, shopping malls and hospitals.
Additionally, because it is easier to get manpower and building materials, these satellite towns are good areas to invest in.
If you are thinking of buying an apartment or town house in Athi River, it will be more expensive for you.
As demand goes up in these areas, the value of property rises too. If you want to sell your house, now would be a good time to do so.
Interestingly, when looking at inflation rates compared with rising property prices, we have noticed town house sale prices have a higher value for money compared with apartments in the same area. This is especially evident in Lavington and Riverside.
In places like Juja and Ruiru, there is no major change in current sale prices against the inflation rates.
Whether you want to buy or sell a home, you need to understand the effect of inflation on house prices.
When inflation is high, house prices increase, and vice versa. With reduced inflation rates, general living expenses go down.
Following the price trends we have seen in the market, coupled with changes in demand and supply by area and infrastructure improvements, we foresee the buyers’ and sellers’ market vary by area.
Largely, we see an increase in supply and demand in areas on the outskirts of Nairobi due to infrastructure improvements, making it easier for commuting to Nairobi while spending less on property respective to Nairobi properties.
Apartment prices are set to increase in high-demand areas of Riverside and Runda, with further town house price increases expected for Karen, Kitengela, and Kilimani.
We foresee stagnant prices in Lavington for apartments and town houses. BuyRentKenya.com’s market predictions are based on pricing shifts, economic key drivers, and real estate trends.