NAIROBI, KENYA: A DREAM DESTINATION FOR RESIDENTIAL INVESTMENTS
June 19, 2020
Investors aim at obtaining high returns on their choice of investment be it in real estate or another form of investment. The real estate industry in Nairobi, Kenya continues to attract investors due to the continuous growth of the industry and the competitive nature which continues to push property developers to incorporate new features and designs to their properties. This helps developers push the boundaries and come up with new concepts that encourage investments.
Currently in Nairobi there is an oversupply of properties. This oversupply of properties provides a wide range of investment opportunities to potential investors as there are a variety of properties to choose from and criterions to choose from such as price of properties, size of the properties, location of the properties and type of properties. The more options for investment, the higher the chances of an investor obtaining a property that fits his/her interests.
Now is the best time to invest in a property. The oversupply of properties in Nairobi has resulted in competitive pricing between developers and real estate consultants opening a pathway for potential investors to make benefit of the situation by negotiating for a better deal. The Corona Virus Disease (COVID 2019) has added to the competitive pricing nature as there is a reluctancy in today’s market to commit funds for investment purposes due to the unpredictable outcomes in the future due to COVID 19. The reluctancy to invest in residential properties has placed landlords in an unfavorable situation as obtaining clients has become more difficult. Potential investors in most cases prefer to hold back for now and invest once the pandemic improves however what is neglected is that, landlords that want to sell their units right now are more willing to reduce the valuation of the initial price set as a result the residential property can be obtained by an investor at a more convenient price.
Residential developments in Kenya are taking a different approach, in that, many of the modern upcoming residential properties are incorporating the aspect of having commercial space within the premise. This enables the possibilities of having companies within a residential apartment so as to increase convenience for the tenants staying in the premise and increasing market reach for the companies who opt to take the opportunity to open an outlet within the residential premise. This is becoming a common trends as it benefits the commercial side as well as the residential side.
Amenities such as swimming pools, fully equipped gyms, boreholes, back-up generators and children’s play areas are increasing becoming a trend in new developments. It is common for new and modern developments to take into considerations the aspects mentioned as they are important to most tenants. The criterions mentioned are part of the main amenities most tenants focus on and as a result would more likely move into a residential apartment that offers them. Furthermore, this aids investors in renting out their residential apartments in order to receive a high rate of return on their investments.
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