According to Statista, Kenya’s real estate sector grew by 6.1 percent in the first quarter of 2022. For the past two decades, the Kenyan real estate market has grown exponentially.
This growth can be attributed to the government’s investment in public infrastructure development projects and the real estate sector. We can see improved roads, railways, ports, and an upgrade of key airports.
Rapid urbanization and population growth have also contributed to this new development. Kenya’s population is growing at 2.3%p.a as highlighted by World Bank Population Growth Data.
We have analyzed the trends emerging in Real estate and we are sharing them with you so that you can make informed decisions. Some of the top trends include:
Real Estate Services have gone online
If there is one thing all of us can agree is that the COVID-19 pandemic has forced most of us to shift online. From online meetings to now online businesses. COVID-19 affected real estate operations by a big margin but it has also opened an opportunity for possibilities on the internet.
The landscape and strategies have changed to adapt to the new reality of post-Covid time. There are so many sites and Apps that have eased the Real estate E-commerce sector. There are considerably many trusted platforms that enable people to invest and view their assets even in 3-D formats.
We believe with the digital transformation taking place in Kenya and Africa in general, this trend will grow further.
There has been significant growth in the Kenyan economy all because of a vibrant private sector and foreign investments in Kenya. Compared to other areas, Kenya’s property market has the greatest potential for higher rates of return. Some of the things that have promoted investments both locally and internationally include; Heavy government investment in infrastructure, rapid urbanization, and a conducive regulatory environment. The scale of investor confidence will be on the rise as demand for real estate assets is growing with the continuous growth of the population.
The real estate market in Kenya is in essence a rental market. Since the process of buying and owning a home hassle for many Kenyans, especially in the middle and lower class, the government and investors have opted to come up with a plan for affordable housing. This will help most Kenyans to become homeowners and investors with much ease. Naivera is among the market players pushing this agenda concerning the 11th Sustainable Development Goal (SDGs) for sustainable cities and communities to end extreme poverty, reduce inequality, and protect the planet.
Let’s keep this conversation going. There is always something new to learn. What other trend have you noticed in the real estate sector? Tell us in the comment section and share this blog with a potential investor and homeowner.