Realtors have been investing heavily in apartments especially in suburb markets.
This is proven by the many reports given by Cytonn, Hass Consult, Data Fintech, Knight Frank among others. All studies agree on one things, the real estate sector in Kenya is moving to apartments. According to KBA’s report released in November 2017, 82.66 per cent of all housing units sold were apartments followed by maisonettes at 10.7 per cent and bungalows at 6.64 per cent. The 2017 Cytonn Investments Nairobi Area Metropolitan Land Report outlined Ridgeways, Kileleshwa and Westlands being some of the most favored locations for mixed-use developments.
Today, Data Fintech’s Real Estate Investment Report focused on apartments in Kileleshwa. As of January 2018, 3-bedroom apartments in Kileleshwa witnessed a 46.79% surge in Average sales ask price from Kshs 15.58 Million in January 2017 to Kshs 22.87 Million in January 2018 and similarly an increase in average rent ask price of 8.9% from Kshs 112,250 to Kshs 122,380 within the same period. Director of Research and Policy at Kenya Bankers Association reports that the increase in price of apartments as compared to bungalows and maisonettes shows an element of the search of affordable housing by potential home owners. Developers are also looking at a lower cost of construction per unit.
Kileleshwa Residential Property prediction
Investors looking to jump in on this band wagon would need to be careful as to whether they will wait or jump in now. Data Fintech’s Real Estate prediction report showed that these properties (3-bedroom apartment listings) will experience a drop in average ask price from Kshs. 22.87 Million in January 2018 to Kshs 21.00 Million by August 2018. That’s a 4.26% drop in price in 6 months. This signals good news for potential home owners.
Rental prices however will increase by 2.06% in the next six months from Kshs 122,380 in January 2018 to Kshs 127,540 in August 2018.