The Future of Property Market in Kenya
Over the last few years the property market in East Africa, and by extension Kenya, has witnessed a boom. However, it is uncertain in the minds of policy makers, investors, financiers and developers whether this exponential growth in the sector is indeed a boob or a bubble.
Key pointers that indicate this is a boom and is in fact here to stay are highlighted in this paper.
First, it is a fact that the property market growth in Kenya is demand generated. This is so as the country’s middle class, a group that is able to comfortably service their mortgages, is expanding and with this expansion comes an increase in the demand for property ownership. Due to their purchasing power, this class of property enthusiasts’ desires and demands fine infrastructure- from well designed excellently finished properties to safe and secure neighbourhoods and they are willing and able to pay premium prices for their taste.
Second, It is worth noting that Kenya’s GDP growth in the last five year stands at 4.5% and this growth trajectory is projected to be sustained or even surpassed due to the massive investment in infrastructure and the opening up of the East African Community Market, the multiplier effect of which is that investors both local and foreign will increasingly find this market attractive.
Leading East Africa in this property boob is Nairobi, the Capital city of Kenya. In a publication of the Economist titled ‘Hot Spots 2025: Benchmarking the Future Competitiveness of Cities’ Nairobi is ranked fifth in Africa for its appeal as a capital, business and talent magnet. This report confirms Nairobi’s position as the largest industrial, financial and investment hub in the region. This stature for Nairobi...
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...sumers through rationalisation of the cost of delivery.
Another driver of the property boom is the low level of property consumption in the country, with home ownership in Kenya currently at 16% this represents a huge an unexploited market. On the opposite end is the office space sector which largely remains a buyer market due to oversupply of space especially in Nairobi. However out of central business district offices are relatively more attractive due to the ample parking space and avoidance of traffic congestion.
The property sector according to Kenya National Bureau of Statistics Economic Survey highlights 2013 registered a growth of 21.9% in the fiscal year 2012/2013. The construction sector further registered the highest growth in employment rate due to among other factors Government’s on-going expansive road construction and private construction projects.
"Famous properties: Boston's signature skyscraper." Journal of Property Management July-Aug. 2004: 8. Academic OneFile. Web. 29 Apr. 2014.
The situation became even more complex when the British colonial administration introduced a currency-based income tax system. For centuries, the Kenyan economy had largely rested on the exchange of livestock and other goods. With this in mind, it should come as little su...
While the United States has a long-standing foothold on the oil in Africa, China has been dominating the other natural resources available for the past 20 years (Bhorat 2013). Additionally, the current perception of President Obama in Kenya seems to have changed dramatically over the recent years. While much of the letdowns were due to high expectations on the Kenya’s population, the general consensus was that President Obama has not done much to help improve the current state of the Kenyan economy. The current programs in Africa are programs that were enacted or established by President's Clinton and George W. Bush (Mwangi 2013). This has allowed the Chinese government to move in and expand operations in the region.
One factor of demand that caused the increase in the property prices in Manchester is taste and preferences. According to UK Council for International Student Affair (“UKCISA”) (2016), the international
In both colonial and post-colonial Kenya, Asians dominated retail and trade. They controlled 75% of medium and large scale manufacturing firms, while they only comprised 1% of the population.1 In contrast to this, Africans only controlled 5% of these firms2, which led to a great level of resentment amongst Kenyans. For example, in the Nakuru district, squatters moved into urban areas in order to find trading plots after World War II. However, with 5047 Asians living in the Nakuru district in 19483, they...
Though Kenya had problems after independence, they still achieved a reasonable amount or degree of political stability under the one party rule of Jomo Kenyatta. Kenyatta allowed foreign investors to remit profits and to own properties even though sometimes on condition of government co-ownership. He also struck a deal with Britain to help finance a massive land purchase which included the transfer of land of 6,070 sq km of land and it fostered a privileged class of African plantation owners. He also spent a third of the national budget on education in the country. Under Kenyatta’s presidency, Kenya’s economic performance was better than most African countries as at that time. Despite the fact that there were severe drought, two oil shocks, ethnic conflict and border skirmishes, the rate of economic growth was among the highest in the continent.
Kenya is a shining gem in Africa because of its many exports and interesting clothing style. Due to its very fair government and a past with no civil wars it stands apart from many of the other African countries. Kenya, though a pretty new country, has huge natural landforms and bodies of water, exports flowers to most of the world, and a rich traditional dress and dance culture. . Its unique past and hopeful future show hope to other struggling countries in Africa and the whole world.
Kenya is a country in East Africa on the coast of the Indian Ocean. Nairobi is the largest city and capital. As of 2016, the population was 48.46 million, but by the year 2025, the population should increase by 2.20 percent, making the population 66,959,993 people. Kenya has an increasing birth and death rate. Kenya's currency is called Kenyan shilling. One Kenyan shilling is equal to 0.0099 U.S. dollars. Kenya is known for their crop growth and living creatures.
There is 75% of the labor force occupied by agriculture sector which only contributes 22% of GDP. Conversely, 75% of GDP were contributed by 25% of the labor force in service, industrial and manufacturing sectors. [9] In 2012, the World Bank showed the data of Kenya’s GDP which was only $40.7 billion in 2012 considered as a low income country. The major agriculture products are tea, horticulture and coffee which are also the main export product. Corn is the major food for Kenyans, but the yield of corn is not stable due to the fluctuant weather condition. For instance, Kenya was in a food shortage during the severe droughts in 2004. In 2012, agriculture exports (horticultural produce and tea) collected $5.942 billion revenues, but the imports ($14.39 billion) the product was more than exports. Thus, it can be seen that Kenya had a serious trade deficit in the world market. The main import products are machinery and transportation equipment, petroleum products, motor vehicle, iron and steel, resins and plastics. In other words, the development of industrial sector was still weak in Kenya. It accounts for only 14% of GDP. The major industrial activity in Kenya is food-processing industries. It has an oil refinery that is able to filter crude oil to complete petroleum products which are mainly for the domestic
It is a challenge for the government to find suitable land to build enough housing in the coming 10 years (120). Since the supply of the land is nearly saturation, and considered for others reasons, Hong Kong government might not be able to provide enough units for the public in the short term (120). However, the poorly argued that the government is not willing to engage resources instead of there are not enough spaces. According to the government’s long-term housing strategy consultation document, there are probably 47 million housing units which can be provided (SCMP). The government begins to find land by using different methods such as creating lands or managing developable land. Although housing cost and shortage a huge and convoluted plan, it is an important and urgent issue which the government should solve it (SCMP). Consequently, the government should not give tones of excuses. Having a place to live is the basic requirement for people survival.
Opportunities are abound in the business environment of Lagos. All infrastructure and population challenges present great opportunities for discerning investors. There are also opportunities for social services, infrastructure, construction and rural power supplies. Most interestingly, there are direct investments by foreign investors in various sectors (Economic Intelligence Unit, MEPB 2012). All these and more shows that the business environment of Lagos is one any willing investor cannot miss out.
Land is a valuable asset, always in demand and it promises good price appreciation. These are the factors that attribute to an upward trend of people investing in land in India. Mr. Dinesh Babu K, Marketing Manager of ABI Estates states that land is an asset that only appreciates with time and does not have instability of gold. One can find 1000% appreciation in land, irrespective of the location, making it a top investment choice. Nowadays, buying a plot has become a trend as people have a better investment capacity as well as information.
The main source of income for Kenya comes from agriculture. Coffee and tea are the most valuable crops. Together they account for approximately 50 per cent of all forigien exchange earnings. Because of the rapidly growing population, Kenya now imports large quantities of food, praticularly wheat. Unemployment is high. Expecally in the urban areas.
A number of policy interventions have been originated since independence to address the growing employment problem in Kenya, and with that, make an attempt at bettering the lot of the Kenyan youth. The earliest among these were the Kenyanization policies adopted at independence in which it was envisaged that young Kenyans would quickly take over duties and responsibilities from departing colonial staffers. Other policy measures included promotion of growth and development of the informal and jua kali sector in the 1990’s.
Ethiopia Real estate and property management LLC is an international real estate company, which is a culmination of the real estate companies in Ethiopia, Master or Regional RE/MAX franchises and partnership. Ethiopia Real estate and Property Management LLC formed by four dynamic visionaries who have about 80 years of experience with different fields such as: business management, Information technology, Law, and Real estate. The main objective of these visionaries’ are to fill the gap of the shortcoming in real estate sales technique as a whole in Ethiopia and to create the new way of doing real estate in one of the most vibrant developing country in The world.