NAIROBI (Xinhua) --
Property sector players and analysts expect
exponential growth in real estate in Kenya following
announcement by President Uhuru Kenyatta that providing
affordable houses for millions of Kenya will be one of his four
key focus during his last term in office.
Kenyatta has said
the government is working on a plan which will enable
developers’ access cheap land and a host of other subsidies to
enable them deliver as many houses as possible.
Kfir Rusin, managing
director of East Africa Property Investment Summit, said
Thursday this is among the triggers that have made Kenya
attractive to property developers.
“Kenya is once again
at the top of investors and developers’ lists of attractive
investment destinations. We are hearing a lot of positive news
from our stakeholders, and we expect some eye-catching
announcements soon,” he said in an interview in the capital
“Revival of the
property sector will be driven by Kenyatta’s
multi-trillion-shilling affordable homes program, a hopeful
review of the interest rate cap and a return to political
certainty following the conclusion of last year’s election cycle
which spooked developers, investors and home buyers,” he said.
The projected gross
domestic product growth rate of 5.8 percent by the World Bank in
January also aids to the increased investor confidence and
appetite in the market, he said.
Leonard Michau, head
of sub-Saharan African Operations at Broll Property Group, said
there is an ongoing commitment to the region by various real
estate investors and developers.
“The commitment of
international retailers to the region, for example, points to
the ongoing vitality of the retail sector,” he said, observing
that many more international organizations are setting up
offices in Kenya, growing demand for high-grade offices.
“The vision and
confidence shown by various developers point to a realistic
assessment of Kenya’s growing regional hub status. This will
require the development of further ‘International Grade A’
office projects able to cater efficiently to the needs of the
multinational corporations likely to establish or expand their
operations here,” he added.
“We are already
seeing the signs of a rebounding market with the inception of
multi-billion Kenyan shilling funds targeting mixed-use
developments, as well as global equity firms investing in
developers in Kenya,” said Rusin.
“While Ethiopia and
Tanzania’s economies continue to thrive, we still see greater
value from a real estate perspective in Kenya’s more diversified
and established economy.”