Dubai has long been known for its booming real estate industry and towering skyscrapers. However, with increasing competition and saturation in their local market, Dubai developers and investors are now looking to expand their presence in other promising markets around the world.
One such market that has caught their eye is the Kenyan real estate market. With its robust economic growth and increasing demand for quality housing, Kenya presents a lucrative opportunity for Dubai-based developers to capitalize on. For example at the ongoing real estate exhibition for the Kenya Homes Expo, the majority of Dubai investors have tapped into the housing sector to woo luxurious home buyers.
Notably, they have set up investment avenues in the country. A recent Cyton report states that in the real estate sector recorded improved performance, attributed to increased real estate property transactions and developments. It further states that there is increased foreign investor appetite for Kenya’s property market, particularly the retail, hospitality, and industrial sectors.
Kenya’s population is rapidly expanding, along with the middle-class segment, resulting in an increased demand for high-quality housing options. With a housing deficit estimated to be around two million units, Dubai developers are leveraging their expertise in creating luxurious and modern residential properties to cater to this demand. The developments range from affordable housing complexes to high-end luxury villas, appealing to a wide range of buyers within Kenya.
Kenya has been investing heavily in infrastructure development, including the construction of roads, railways, airports, and other amenities. These improvements have facilitated urbanization and spurred economic growth, making it an attractive destination for real estate investments.
Daniel Ojijo, founder of the biggest homes show in the region says that Kenya remains an attractive investment avenue due to infrastructural investment.
“Dubai developers, with their experience in urban planning and infrastructure, have joined in the housing sector due to their expertise in the ongoing projects in Kenya, enhancing the overall value and appeal of the real estate developments,” he says.
Political stability and a business-friendly environment, he adds, have made the country a stable economic growth and favorable investment climate offering a promising opportunity for Dubai developers to establish a presence.
The government has implemented various policies and incentives to attract foreign investments, including tax breaks and streamlined regulatory processes. This supportive environment provides a sense of security and encourages long-term investments.
Kenya is renowned for its diverse wildlife, stunning landscapes, and vibrant culture, making it a popular tourist destination. Increased tourism translates into increased demand for hospitality properties such as hotels and resorts. Dubai developers, who have excelled in creating world-class hospitality projects, can leverage their expertise to develop luxurious and unique accommodation options for tourists in Kenya. This will not only boost the tourism industry but also create potential synergy between the real estate and hospitality sectors.
Collaboration between Dubai and Kenya-based developers can facilitate knowledge transfer and skill development. Dubai developers can impart their expertise in project management, architectural design, and construction techniques to the local industry. This exchange of knowledge can help raise the standards of the Kenyan real estate sector and create more opportunities for local professionals to enhance their skill sets.
Dubai’s interest in the Kenyan real estate market signifies the potential growth and opportunities that exist in Kenya’s developing economy. The combination of Dubai’s expertise in real estate development and Kenya’s economic stability and increased demand presents a win-win situation for both parties.
Joint ventures and investments from Dubai developers can help address the housing deficit, contribute to infrastructure development, boost tourism, and promote skill development in the Kenyan real estate sector. As the partnership between Dubai and Kenya strengthens, it is expected to bring substantial growth and prosperity to both nations.