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Kenya Real Estate Sector Profile

Kenya Real Estate Sector Profile

The construction sector grew by 4.8% in 2012 and Kenya currently constructs about 1,200 houses annually. The country has an urban growth of 4% and an urban population of more than 30. This means that one out of every two Kenyans will live in urban areas before 2030 (and probably by 2015). There are over 50 lands offices countrywide. Kenya still needs to construct 250,000 houses annually if it has to address the mushrooming of shanties in informal settlements and challenges facing provision of good shelter.

Characteristics

  • Kenya demand for housing is higher than supply and this is expected to continue until 2020.
  • Rate of returns on foreign real-estate investments in Kenya are high
  • Shares of real estate developments are now traded at the Nairobi Securities Exchange, enabling even small investors to own property by buying shares of such properties.
  • Increased total value of private and public buildings
  • The sector has a steady growth rate

Challenges

  • Fake allotment letters and title deeds,
  • Delayed processing of titles, and land demarcation
  • Under-funding of the ministry in charge

Real Estate Sector Profile in Kenya has been summarized to include

Drivers for the Growth in the Real Estate Sector

Infrastructures

Infrastructure and renewed interest by developers to build and sell more in trying meet the growing demand in both residential and commercial property segments has acted as a key driver for the sector growth.

Increased demand

The property market is responding to demand that has been created by the expanding middle class with disposable income and able to service their mortgages.

Population growth

Nairobi, Kenyas capital city has experienced high increase in the population growth rate of 4.2 and this has resulted into increase in the demand for houses around the city.

Easy business registration

Kenya has made the process of registering business easy by introducing online company registration and no charges on some services. For instance entrepreneurs looking to register limited companies are not charged for the service

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