Two rivers development, which is a project of the Centum Company, has attracted USD 155 Million funding or over Kes.14 billion in debt and equity from The Co-operative Bank of Kenya Limited and More »
Cretum Properties on Tuesday launched a Sh22.7 billion real estate known as Green Isinya City. The office blocks, maisonettes, schools, high end eateries and police stations will sit on 1,000 acres in More »
Set on a ten-acre estate, the Hogmead residence is now one of the priciest commodities in Kenya’s residential property market, confirming the growing status of Kenya as a prime real estate location More »
The Global Real Estate Transparency Index ranked Kenya top among 14 most improved countries in real estate transparency globally. The Index by consultancy firm Jones Lang LaSalle Index uses a combination of More »
To the vast majority of urban Kenyans, owning a home remains is a pipe dream. In fact, according to the National Housing Survey Report released earlier this year by the Cabinet Secretary for Lands, Housing and Urban Development, Mrs. Charity Ngilu, only 4.2 per cent of Kenyan households could borrow money to buy or build a house. This explains why the number of households paying rent rose from 17.25per cent in 1994 to 23.8per cent in 2005/06.
It is with this in mind that one property developer, Kings Pride Properties, has come up with what it calls the “zero deposit route” to owning a home. The firm’s chairman, Maj (rtd) David Karau, says they have been working ways to enable the youth, as well as lower-middle and middle-income earners, to afford their own homes.
When Martin Wang’ombe went to inspect a plot he wanted to buy in Oloolua in Ngong, he noticed something unusual about his would-be neighbour’s house. It seemed to be slanting and had a huge crack on the wall. As he would later learn, the house was sinking, sucked in by the black cotton soil on which it stood. It turned out that the plot was in an area where the soil was more than 10 feet deep.
Normally, black cotton soil swells when wet and shrinks when dry. These changes, known as shrink-swell, tend to make the foundation sink deeper with time, leading to structural damage to a house built on such soil. During the construction of the house mentioned earlier, the contractor did make it rest on the bedrock, so the shallow foundation started sinking once the soil began swelling and contracting.
Two rivers development, which is a project of the Centum Company, has attracted USD 155 Million funding or over Kes.14 billion in debt and equity from The Co-operative Bank of Kenya Limited and AVIC International, Industrial & Commercial Development Corporation (“ICDC”).
A sum of USD 70 Million (over Kes. 6.3 Billion) in equity has been invested in the project by the AVIC international Company. This is in addition to the USD 5 Million (over Kes. 450 Million) in equity invested by the Industrial and Commercial Development Corporation of Kenya. Also, the Co-operative Bank of Kenya has secured a local debt funding of USD 80 Million (over Kes. 7.2 Billion).
According to a report released by the Lands and Urban Planning Ministry, residents of Nairobi County are the ones who pay the highest rents in the Country. They are followed by Mombasa and Kiambu.
The most expensive neighbourhoods are from Nairobi fetching the highest value in the rental market. The report has it that 58,248 houses rent is above Sh20,000 per month. Three quarters of these are in Nairobi while 7,009 (or 12 per cent) are in the neighbouring Kiambu County.
The county of Mombasa owns 7% of the most expensive rental homes, Eldoret owns 1% of the most expensive homes in the whole country, its then followed by Lamu, Kericho, Kakamega and Isiolo.
In a bid to cater for those unable to afford mortgages, a 300 houses tenant purchase scheme is currently underway in Nakuru.
Fusion Capital plans to build 1,000 housing units throughout the country in the next three years, of which 30 per cent will be sold through a tenant purchase arrangement that helps home buyers who cannot raise monthly payments required by mortgage lenders.
The company said it plans to build more houses to be sold under the scheme in all counties.
The company, together with a Nakuru landowner, created a joint venture known as Grandepark Estate to build 120 three-bedroom Montey Apartments.
Buffalo Mall, Naivasha’s biggest shopping mall has now leased 95% of the mall. Kenya’s top brands have already taken their place in the Mall. The developers are already set on a strategy to target Kenya’s Secondary Cities. The phase one of the mall was already complete on November last year only eleven months after construction started.
The developers have expressed satisfaction with the ongoing construction progress and quality of delivery on site and so far phase one has attracted different leading brands in Kenya. Phase two has already attracted an array of Kenya’s leading brands with more than 20% leased with a considerable expression of interest having been received for the balance of areas. This level of interest on provision of truly standard modern retail facilities in Kenya’s secondary cities is long overdue and hence the need for this level of interest.
The bankers’ lobby group will today unveil a housing price index, promising to give the property market a tool to analyse factors that inform price movements.The Kenya Bankers’ Association first announced the index last September. The lobby says the index will track changes in overall prices and property specifications.
KBA hopes the index will form a key source of information for policy makers moving forward.“The KBA Housing Price Index will supplement the consumer price index and private sector credit data on which the Central Bank relies to formulate its monetary policy,” KBA said in a press invite yesterday.
Real estate investment trusts (Reits) have featured prominently in business news since the Capital Markets (Real Estate Investment Trusts and Collective Investment Schemes) Regulations came to effect last year. Among their benefits is the entry of low-income earners into real estate investment.
For low-income earners, investment in real estate has been elusive. While the sector has high returns on investment, its capital demands are limiting. Many investors rely on loans from financial institutions while others exploit avenues such as joint venture agreements for financing. Bank loans, outweighing other sources of income, have their shortcomings. Lenders will ask for security for the loan, a requirement many low-income earners may not easily meet. The interest rates are also discouraging.
Electricity vendor Kenya Power has requested property developers to apply for connections as soon as their building plans are approved to ensure faster delivery. When demanding for power connections after construction is completed, developers usually have to await for at least nine months, according to managing director Ben Chumo.
Builders whose electricity lines need transformers will be better off seeking connections as soon as they break ground for construction, he said. Kenya Power is at the juncture carrying out a project to take electricity closer to potential customers, which will help new properties get the utility sooner.
For a long time trading in gold was seen as a sure-fire way to make money but today’s investors are looking at the ground beneath their feet to get them hefty returns.According to an article done by Hass Consult titled, Urban Land rises as Kenya’s gold standard, land in Nairobi now offers a lot more financial gain than gold, property, livestock and oil.
“From 2007, land prices have magnified five-fold,” says Ms. Sakina Hassanali, head of research and marketing at Hass Consult.
The article, which is the first land index to be unveiled in the country, also revealed that buying land in Nairobi is out of reach for many individuals and this has forced them to look further afield when it comes to buying land.