| Mwenda Thuranira
Kenya has, in the past few decades, seen an exponential growth in the real estate sector. Years from now, this time will be recalled as the period of construction and reconstruction in Kenya. If you are an investor and are still alive in this era, then it would be a far too expensive opportunity-cost to forego the Real Estate option. Here are some of the key factors that have considerably led to Real Estate Growth in Kenya:
Improved purchasing power
The Kenyan economy, as per Kenya National Bureau of Statistics indicators, shows a steady growth of the Kenyan economy at rate of about 5% per annum. This therefore interprets to an annual increase in the per capita income (income per person) leading to an increase in the Kenyans’ purchasing ability of items including real estate. This growth is expected to continue into the future, which makes Kenya a reliable option for investors, particularly when it comes to the real estate market.
Growing middle class
The increased purchasing power has contributed to the growth of the number of middle-income earners in the nation as a result of job creation backed by good education and entry of improved technology in different sectors of the economy. Educated youth are able to find lucrative jobs that provide a steady income allowing them to afford adequate housing via loans and mortgages. The power to purchase their homes or pay a higher rent has created a demand in the property market which is a source of revenue and delight to property developers. The youth therefore add to the number of local investors in Kenya.
A myriad of multinational firms are tapping into the Kenyan market as a gate-way to capture the East African market in the long run. The Kenyan government and her people have created incentives to foreign investors through attractive legislative and social frameworks that can accommodate them both in the present and future. Projections done by the World Bank reveal that the Kenyan economy is likely to experience an economic growth of approximately 5.7% for the year 2013 – this has served as an eye opener to foreign investors.
Investment in infrastructure
Both the central government and private investors have seen the value of investing in both transport and communication networks. Such infrastructure developments include the Thika Superhighway; the Lamu Port South Sudan Ethiopia Transport (LAPSSET) corridor; and the Dongo Kundu, Southern and Northern bypass. They are envisioned to: improve efficiency in economic relations with other countries and among the local business community; and to open up new real estate markets in different geographic locations.
This is the ideal moment to jump on the bandwagon and reap the foreseen returns from real estate.
Mwenda Thuranira is the CEO of Myspace Properties
| 30 Aug 2013