Kenyan Real Estate Sector Experiences Growth Post-Election
Real estate experts are forecasting an increase of investments in Kenya’s housing sector after a peaceful election process. Experts say that the environment among infrastructure development have solidified the confidence with more investors cashing in the opportunities.
The Sh87. 9 billion Nairobi Expressway, for example, has spiked construction investments in upmarket regions like Westlands, Kilimani, Kileleshwa and its environs. The Expressway has also opened areas like Mlolongo, Syokimau, Athi River and other satellite towns to contribute to the sector.
“Certainly, some of the things we are optimistic about are the laid down infrastructures across the country and our economic resilience after the pandemic. Covid affected many businesses and we are really pleased with the calmness that has preceded the general elections,” says Kennedy Lumumba, the marketing head of Sigimo Enterprises.
Kenya’s housing industry grew by 6.1 percent in the first quarter of 2022 in the backdrop of coronavirus pandemic and an uptick of the general elections. This represented a slightly slowdown in the growth rate compared to the corresponding quarter in 2021.
That quarter, the value added by real estate activities to the country’s Gross Domestic Product (GDP) expanded by 6.7 percent.The pandemic presented a lock down measures which dipped the performance of real estate. This has however changed with the global administration of vaccines and continued adaptation of economic activity to subdued mobility.
Various real estate reports indicate that by 2030, the size of the real estate market is expected to reach 14.6 billion U.S. dollars due to a growing demand for industrial and commercial infrastructure and the recovery of the global economy post Covid.
Kenya infrastructure expenditure increased by 8.6% which is Sh 416.4 billion from Sh 383.3 billion in financial year 2021/2022 with increased development in the road, rail, energy, and water sectors. These according to analysts have put Kenya a top choice country for housing investment.
“Other factors likely to impact growth are the saturation of the residential real estate market in affordable housing in counties and cities making housing a possibility for mid-level income earners,” says Lumumba.
The Affordable Housing Programme, channeled by the past regime with the aim to facilitate the development of 500,000 low cost homes while using innovative funding mechanisms and technologies. In partnership,the Kenya Mortgage Refinance Company (KMRC) was to provide long term funds to primary mortgage lenders in order to increase the availability and affordability of home loans to Kenyans.
Real estate event organizers like the Kenya Homes Expo are targeting the real estate stakeholders in an experiential platform that creates a level ground for real estate players to converge with a ready market for land, homes, financial advice and general real estate information. The event will be happening in October 20th-23rd 2022.
Event organisers are banking on the peaceful coexistence experienced within the country to bring together major industry players in East and Central Africa.