Credit: datafintech

The real estate investment forecast for Loresho is definitely appealing. Loresho is one of the prime upmarket Kenyan suburbs in Nairobi usually inhabited by residents whose clout ranks with the likes of Karen, Lavington and Runda. As the prices indicate, market players here are of the high-end type.

Analysis from datafintech show that land in Loresho has been treading the path of upward gains. In the report, the projected total yield for the year 2017 stands at 10.2%, with a capital gain of 2.7% and a rental yield recording 7.5%. In Q1 the price per acre was ksh. 70 miliion while in Q3 the price per acre was Ksh. 75 million. Better still, this is expected to increase to Ksh. 79 million and further to Ksh. 83 million, a shot in the arm for investors.

In effect, the land price appreciation for 2017 is projected to reach 13.5%. The sale price forecast for Q4 2017 and Q1 2018 is given with a 95% confidence interval. However, the bid price is estimated to be 10% lower than the ask price for sale listings.

The positive outlook notwithstanding, investors will be worried about the effects of the political environment in the country which may wipe out demand and with it all the attributable capital gains. For now it’s a wait and see situation for investors.