The government’s move to set aside prime land for free to private developers will help to significantly lower the overall cost of home ownership in Kenya.
Mizizi Africa Homes Chief Executive Officer, George Mburu has lauded the move saying it will accelerate the construction of affordable housing units and fix housing gaps by bringing more Kenyans into home ownership.
“This will be a big relief for private developers as the cost of putting up units will reduce significantly since land takes up the largest share of construction costs and this is also dependent on the location of land,” said Mburu.
“The cost of land takes anything between 30-70% depending on the location and cost of the development. Consequently, consumers will be the biggest beneficiaries as these reduced cost benefits are passed to the buyers,” he added.
President William Ruto during the launch of the Listing of Laptrust Imara (REIT) at the Nairobi Securities Exchange in March 2023, said County governments have already donated to private developers, more than 4,000 acres valued at KSh. 30 billion for the construction of affordable housing
“The impact of this deliberate effort is huge with its ripple effects set to be felt across the real estate industry, manufacturing, and financial sectors in terms of increased activities and money circulation into the economy,” said Mburu.
It will also spur economic activities in the counties and open up sleeping towns to create more jobs for residents and income for the government.
Kenya’s annual housing demand is estimated at 250, 000 units but the market has been supplying just 50,000 new houses every year, leaving an 80 percent deficit.