Kenyans seeking to own homes are turning to second-hand houses as the prices of new units continue to rise. Used houses have become an easy route to home ownership, especially for first-time buyers who do not have the financial muscle to buy new properties that go for as high as $117,418 for three-bedroom units. The second-hand houses are being sold in middle-income estates in Nairobi where the gated community concept was pioneered. The estates include Buru Buru, Komarock, South B and C, Embakasi, Madaraka and Langata. Those wheo are selling the houses are first time owners to new residential areas. Some of them have stayed in the estates for over a decade.
KENYA: With Nairobi being one of the most lucrative real estate destinations in the region, it is emerging that the industry is not capitalising on its potential. A new report by Mentor Management Limited has revealed that few developers are meeting the demand for office space in the city.
The report, released last week, revealed that many developers are not building offices that are in sync with what many companies are looking for.
Nearly all of the tallest buildings in Kenya are to be found in Nairobi. Except for maybe Bima towers in Mombasa no other building in Kenya can squeeze itself among the top 20 buildings in the country. Nairobi dominates in anything that has to do with real estate in Kenya; whether residential or commercial. Nairobi is Kenya center of innovation, industrialization, education and culture. It also generates almost half of Kenya’s GDP and employs 25% of Kenyans and 43% of urban workers in the country. The city is also hosts the United Nation’s regional headquarters and is also home to Coca Cola, General Motors and Google headquarters. Nairobi is home to three quarters of the millionaires in Kenya having 6, 200 high net worth individuals.
Integrated financial services provider, Housing Finance Group ongoing business diversification strategy has boosted growth with the firm registering a 63 percent rise in profit before tax for the full year ended 2013.
The Group’s before tax profit grew to Kshs 1.48 billion, up from Kshs 907 million posted in a similar period in 2012. After tax profit grew to Kshs 995.19 million up from Kshs 743.33 million, representing a 33 percent rise.
Kenya recently celebrated 50 years of independence, the event was marked with pomp and colour led by President Kenyatta who was born in the same period. For majority of the nation who are youths under the age of 35 colonial rule is just a part of history. Most of us were been born in a time when oppression, colonialism was out of topic in Africa. The challenges had moved to poverty, hunger and conflict. So marking independence from colonial oppression should not mean much. Nevertheless Kenya has in the recent past shifted gear to a more positive outlook for its future. Looking back to the events in the last half century it is clear we are curving a new beginning.
Jones Lange Lasalle a chicago-based real estate firm has ranked Nairobi as among top ten emerging global cities. The list also featured Tel Aviv (Israel), Riyadh (Saudi Arabia), Santiago (Chile), Shenzhen (China) and Colombo (Sri lanka).
Jones Lang LaSalle is a financial and professional services firm specializing in Continue reading
High interest rates charged by commercial banks have frustrated Kenyans’ keen to own homes and making worse the country’s housing shortage, a new report said yesterday.
Jenga Web Managing Director Nathan Luesby(right) and Hass Property Development Manager Sakina Hassanali during the launch of the Hass Index report for the 3rd quarter of 2013 at the Hilton Hotel on October 31, 2013.
The HassConsult’s 2013 third quarter report released yesterday said commercial banks are charging in excess of 18 per cent relative to the current benchmark lending rate of 8.5 per cent, making the cost of owning a home in Kenya one of the highest in the world.
Hassconsult Ltd is a real estate firm and leading real estate agent in Kenya. Hassconsult produces a quarterly index on residential property prices and rents in Kenya. Throughout the years the index has covered the exponential growth of the Kenya property market; covering residential rents and prices. The index was first started in 2009 and has been the only source of real estate information in the Kenya market. The index also provides information on the Kenyan Mortgage market. The index has helped Kenyans and foreign investors get an overview of the real estate market and dynamics of the Kenyan economy.
Kenya’s mortgage industry has been on the growth path and is now becoming more competitive. Although on the on a growth path mortgage lending is still really low and as of December 2012 it stood at 3.7% as a percentage of Kenya’s GDP this compared to 70% and 50% in the US and UK respectively. A number of obstacles have been identified as impediments to the growth of mortgage accounts; affordability and insufficient housing supply are among them plus a lack of understanding about mortgage among Kenyans. But still mortgage uptake is on the rise at 30% per year mainly from a growing middle class.
What is a Mortgage
A mortgage is a loan agreement between a home owner o r buyer and a financier that gives the conditional right of ownership of the property to the financier as security for the loan, until the interest on the amount is fully paid. Continue reading
The living standards in Kenya are rising each day and this is affecting their taste and choices with regard to lifestyle. Interior design is becoming an important part in the lifestyle of individuals who would like to see a more authentic surrounding in their homes. With people nowadays spending more time indoors, whether is to watch movies, working from home or enjoying a holiday; interiors have become a more notable feature of the home. We might not know but our moods and temperaments are influenced by the interiors of the house; whether its furniture, wallpapers and mostly wall painting. More importantly if you own your own home there is a particular preference you have for your interior design and décor. Continue reading