on what should be the steps that the sector should take to ensure a time of sustainable growth and prevent a real estate bubble like the one suffered a few years ago in Nairobi, Kenya.
In 2018, Nairobi already attracted all eyes. The city attracts every year more and more newcomers, thanks to its dynamism, quality of life, its privileged geographical situation and its unique charm. This is enough to boost prices but also to maximize the chances of making a successful investment.
The real estate market in 2018 was dynamic thanks to low-interest rates. However, the country has seen high mortgage rates of 12% to 15% on average and demand for affordable housing.
The rising real estate prices have impacted the purchasing power of Kenya. The year 2019 will be marked by several regulatory changes and in particular the implementation of the current construction codes into Eurocodes by January 2021.
KENYAN REAL ESTATE MARKET: WHAT TO REMEMBER FROM 2018?
A rise in generalized property prices in Kenya.
Real estate continued its rise in 2018 but it was more contrasted. In fact, prices rose by + 3.8% on average, with spectacular increases in some cities such as Loresho (8.9%), Kitisuru (4.6%), Gigiri (4.6%), Spring Valley (2.6%), Langata (7.6%), Nyari (6.5%), Karen (2.1%).
Conversely, other cities have seen very sharp declines. This is the case of Langata (7.6%) and Westlands (-1.1%), according to the research. However, we note that, since 2015, the upward trend of real estate prices was intensifying.
There was a lot of tension in the country and investors did not want to engage in huge and very expensive projects.
Companies have adopted a wait-and-see attitude in the hope that things will improve. And then the handshake occurred and brought some kind of stability.
Different sectors of the economy began to race, which also led to a change in real estate. Most investors have returned to Kenya and businesses have begun to grow.
What should investors, home buyers and sellers expected to see in Kenyan real estate trends in 2019?
