THE STATE OF KENYA’S REAL ESTATE TODAY
THE STATEOF KENYA’S REAL ESTATE TODAY part 1
Article by bestmombasa.com writer
Kenya’s recent change of government has largely contributed in building confidence in property investment within the country. Investors are reaping profits from Kenya’s rapidly expanding real estate market. The country has made great advancement in both the government and private sectors which has lead real estate in Kenya a new investment option in today’s global market. The government has improved real estate investment through encouraging donor support programs and strengthening the country’s economy by eliminating corruption and targeting foreign investments, moreover Kenya’s annual housing demand is estimated at 15000 per year but it manages to supply only 2500 houses per year. This makes the real estate market alluring to investors.
The country’s land prices as for this and for the previous year 2010 are at their most affordable in and around the capital city, Nairobi. With the improvement of infrastructure which includes the building of the Northern and Southern bypass as well as the upgrading of the Thika Highway into a 10 lane superhighway. This has opened up prime land near the capital for real estate development. At current rates of land around the bypass is still at KES 600000 per acre. With the scheduled completion of the northern by-pass scheduled in a year’s time prices are very likely to sky-rocket. Current estimates by the Ministry of Lands have the price per acre pegged at not less than KES 8 million. The government is set to reduce land rates and interest rates on loans and mortgages to encourage private development to ease the current shortage of living premises.
Prices are more favorable in the outskirts of Nairobi. Provinces such as the Rift Valley and Central are known for their high agricultural productivity and serve as the backbone for the Kenyan economy. Here land prices are relatively lower and are ranked slightly below prices of land in Nairobi with the most recent approximation being at least KES 300000. In the arid areas which include the provinces of Eastern, North Eastern and larger parts of Nyanza province price for an acre of land can range between KES 150000 to 200000.
THE STATE OF KENYA’S REAL ESTATE TODAY
to be continued in part 2 tommorow
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