(Xinhua) -- Kenya’s property prices have
experienced a 3.1 percent decrease in the second quarter
as a result of oversupply, a report released on
According to the Hass Property Index,
the real estate sector has an oversupply due to its
“So the slight decrease in property
prices is a form of price correction as the property
market stabilizes,” says the report that was
conducted by HassConsult.
Since the beginning of the year, the
property selling price has reduced by 2.2 percent as
compared to 2016. However, property values have
increased by 4.24 times, while rents have increased by
3.7 times since 2000.
The survey shows that in the past
decade, the real estate sector has attracted huge
investments due to a housing shortage.
However, these investments have
resulted in a property glut especially in the high end
“The opportunities to buy properties
and then sell them at a handsome return are becoming
thinner as prices have become static over the last
few years,” notes the report.
The Hass Property Index says that
investors are now shifting towards renting property as
opposed to selling property.
HassConsult Head of Development
Consulting and Research Sakina Hassanali said that there
is increased interest in rental yields by investors as
capital gains become harder to achieve.
“In fact, the real estate investors
are giving rental yields a greater consideration as
the marginal house price increases over the last few
years, have reduce the opportunities to flip
properties and reap large gains,” Hassanali said.