Three bedroom apartment to let in Westlands

Five bedroom all-ensuite townhouse for sale

A spacious and luxurious townhouse to rent in Parklands

Three bedroom apartment to let in Parklands

Parkwood villas 4br syokimau

Tilisi 3br apartment

Great wall 3br apartment

Lavington offplan apartments

Makumbi apartments syokimau

Market, Along Manyanja Rd, Nairobi, Kenya

Umoja block sale apartment

4br townhouse own compound

MOONVALLEY 2br kileleshwa

Studio, 1-3 bedrooms Apartments

3-Bedroom Apartment

3-Bedroom Apartment+Dsq.

Studio,1,2 & 3 Bedroom Apartments for Sale

Yaya Centre, Argwings Kodhek Road, Nairobi, Kenya

One-Bedroom Apartment

2-Bedroom All En-suite

3 Bedroom Master En-suite + Dsq

3-Bedroom (Two En-suite) at Kileleshwa

One-Bedroom Furnished Apartment

2-Bedroom Fully Furnished & Serviced Apartments

2 Bedroom Apartment

Godowns For Sale in Industrial Area

E-Logistics Solutions Limited, The Eco Green Business Centre, Kenya

Grade A Warehouse

Commercial Building

Commercial Office Space

4-Star Hotel

The Institute of Engineers of Kenya (IEK) has lauded Chinese contractors for boosting Kenya&rsquo;s construction sector. 

Speaking during the launch of the 27th IEK International Conference on Wednesday, IEK president Nathaniel Matalanga said most of the public infrastructure projects are being implemented by Chinese firms. 

&ldquo;Chinese contractors have helped the country because they have better technology as well as new ways of labour-management that ensure projects are completed on time,&rdquo; he told <a href="http://www.xinhuanet.com/english/2020-11/18/c_139525024.htm">Xinhua</a>. 

Chinese contractors have been able to fill the gap for local contractors who lack the capacity, technology and financial muscle to undertake large scale projects. In addition, modern technology in steel and concrete gives them an edge over local contractors. 

&quot;We are also keen to learn how the Chinese engineering and construction community has been able to raise funds to undertake projects,&quot; said Matalanga. 

The conference will enable local engineers to exchange ideas and perspectives with global practitioners in the construction industry. Up to 1,800 visitors from 15 countries are expected to attend the three-day event to be conducted both virtually and physically.&nbsp;

Africa’s population is projected to reach 2.4 billion by 2050, that’s 1.3 billion more people than there is today. This growth means a huge demand for buildings and an estimated 80 per cent of those that will exist in 2050 are yet to be built. Data from the International Energy Agency shows that buildings and construction are currently responsible for almost 40% of global greenhouse gas emissions and by improving the energy efficiency of buildings, we could reduce energy consumption by 5-6% and subsequently reduce operational costs of a building.

SPACE – a two-day business exploring the business value efficient and smart build investment have on the African market – will debate whether building with sustainable methods and materials is also the most cost-effective way to ensure a long-term profit for real estate projects.

Matthew Weihs, founder of the SPACE event, said: “Although the green building movement is in its infancy in Sub-Saharan Africa, the past year’s developments show that great work is already taking place, with more than 25 projects in the pipeline for green accreditation. The temptation to avoid sustainability on the grounds of cost is a huge misconception. Environmentally friendly materials and building methods are becoming increasingly accessible, and in the long-term they prove not only better for the environment, but also cost-effective, and more profitable. Crucially, they show the potential to achieve better investment returns and higher valuations and it’s something that the big investors want to put their money behind.”

Weihs continued, “We’re really pleased that, as well as all the financial speakers at SPACE, we have the World Green Building Council participating as expertise from such councils is vitally important in the growth of this sector.”

Jane Afrane, recently appointed Regional Head of the Africa Regional Network at the World Green Building Council will be a keynote speaker at SPACE. She is focused on the setting up, establishment and advancement of Green Building Councils across the Africa region and spearheads project development and advocacy initiatives in the region to raise and promote awareness of green building. Afrane comments “WorldGBC is delighted to be participating at SPACE. This conference is taking place at a critical point in time where the green building discourse is gaining traction in the African region. The role of the private sector in meeting Africa’s infrastructure needs requires an enabling environment that is centred around sustainable development and awareness raising on green opportunities.”

SPACE will take place at the Radisson Blu, Nairobi Upper Hill from 13-14 March 2018. Prominent speakers include: Prashant Kapoor, Principal Industry Specialist-Green Buildings, International Finance Corporation (IFC); Gloria Mamwa, Head, Property, East Africa &amp; Kenya at Standard Chartered Bank; Raphael Mwito, Business Development Manager at BRITAM; Myles Kritzinger, Deal Maker, International Housing Solutions; Koome Gikunda, Associate, Principal and Director, Actis Capital; Bruce Walker, Chief Executive Officer, Verde Hotels; Ritu Kumar, Director, Environment and Social Responsibility, CDC Group; Elizabeth Wangeci Chege, Chairperson, Kenya Green Building Society and Abraham Muthogo Kamau, Director, Business Origination, Miradi Capital.

The government has struggled to attract private investors into the affordable housing programme using one of its key incentives, the ‘guaranteed offtake agreement’.

The off-take model sought to ensure developers are paid all their dues within two-years after completion of the project.

Under the arrangement, the developer and the National Housing Corporation (NHC) enter into an off-take agreement prior to construction.

The agreement requires the developer to engineer, procure, construct and finance the units, and then sell the units to NHC upon completion at an off-take price of KSh 40,000 and KSh 50,000 per sqm (net internal sqm.).

Also, the developer is required to build 70 percent of the units to the AHP specifications and allowed to build 30 percent to market specifications. As part of the agreement, developers must provide cash collateral or a letter of guarantee of KSh. 100 million (US$1 million) to enter into the off-take agreement.

However a recent report by Centre for Affordable Housing (CAHF) shows that developers are not enticed by the off-take agreement in its current form.

Developers have cited difficulty in procuring construction finance and the poor credit rating of the government locally in reference to the government’s reputation for late and unreliable payments.

They also pointed out that the off-take agreement ignores development realities. For instance, the allowance that 30 percent of units can be built to market specifications as a lure to developers is only applicable to areas with high land-values, such as centrally located land in big cities where the market for higher-value housing can be established and not in peri-urban areas with longer commutes and lacking in amenities.

It also does not take account of the recent weakness in the Kenyan economy, which has softened considerably since 2017, resulting in a contraction of off-plan sales and diminished speculative interest in the residential real estate sector.

The report states that the proposed AHP off-take model offsets normal developer operations where cash flow financing is more aligned to market realities with regard to pricing of units and access to construction finance.

Related; <a style="color: #ff6600;" href="https://estatecloud.co.ke/housing-shortage-provides-ksh-400-billion-opportunity/">Housing shortage provides Ksh. 400 billion opportunity</a>

Government struggles to hook developers on off-take agreement for affordable housing

Real estate professionals to gather in Nairobi to explore ROI of efficient buildings

Studies have shown that student debt can be a major obstacle in the way of achieving financial freedom for millennials. A large majority of the millennial workforce have benefited from student loans, which they have to repay. Upon graduation, many who are lucky enough to enter the employment market find themselves in an intricate financial maze. Among the financial decisions baying for their attention include family aspirations, retirement savings, student loan repayment, rent and home ownership not to mention basic survival.

The balancing is tough considering the median salary for entry-level employees for the first few years rarely exceeds KSh. 30,000. It’s for this reason that most millennials have resigned themselves to tenancy. As it happens, in major urban centres like Nairobi, it is estimated that over 75% of dwellers rent houses. One of the key financial milestones for any adult is home ownership. However, achieving home ownership can be an uphill task if you have multiple streams of cash outflows and a paltry salary to count on.

So what’s keeping millennials away from home ownership?

Recent research has shown that servicing of student loans is one of the burdens which derail millennial types from achieving home ownership. In the US for instance, a recent study by the National Association of Realtors and American Student Assistance found that millennials delayed owning homes for more than 7 years due to student loans.

Millennials have fallen victim to life in a more complex operating environment with inflation, interest rates, population growth and other systemic uncertainties that threaten economic stability. Not only is it harder now to secure a student loan, repaying the loan is the more bewildering puzzle.

This loan repayment conundrum has over-spilled into the home ownership dilemma. Most millennials begin their careers in fast-growing cities with aspirations of home ownership while paying rent and other living expenses. In the case of mortgages, the most common strategy for home ownership is to save for the down-payment over time since it is usually the largest installment to pay for the mortgage.

However, many find it an uphill task owing to the countless expenses together with the obligation to submit a monthly amount to the higher education loans board. As a result, some choose to dedicate their meagre earnings towards loan repayment before embarking on the home ownership expedition. This may take a few years depending on the loan amount and the interest, and along this uncomfortable trip, loan defaulters are never lacking.

Recent data from the Higher Education Loans Board (HELB) shows it has over 85,000 loan defaulters owing KSh. 9.7 billion while another 132,233 beneficiaries are servicing loans worth Sh19.8 billion. The total is KSh. 29.5 billion. Given an average house price of KSh. 2 million, this amount could afford 14,750 houses.

As it stands, more than 75 per cent of urban dwellers are tenants, a good number of them are millennials, constrained from home ownership by among other factors, student debts.

Property developer Sycamore Pine Limited is seeking regulatory approval to put up 1,959 housing units in Migaa Golf Estate, Kiambu County.

An approval document filed with the National Environmental Management Authority (NEMA), shows the residential estate which is set for the Migaa Golf Estate in Kiambu will be known as Samara.

The developer has carved out 17.2 acres of land from the expansive Migaa Golf Estate to carry out the development. According to the filed document, the housing units will comprise of only two and three-bedroom apartments.

Phase one of the project has already been funded to the tune of Ksh. 1.4 billion. More than any other location within the Nairobi metropolitan area, Kiambu has grown into a magnet for large real estate projects involving housing. This has been backed by a number of factors including the demand for housing and residential land, which have made landowners ditch coffee farming.

Just yesterday, Tatu city announced that it had beat the 2020 near-market freeze to sell out more than 90 per cent of its land parcels. Tatu city&rsquo;s sales department <a href="https://citizentv.co.ke/business/tatu-city-beats-real-estate-slack-sell-residential-properties-7952162/" style="color: #ff6600;">explained</a> that the demand for residential spaces has been on the rise with uptake increasing greatly in the past year.

&ldquo;On a monthly basis, we&rsquo;ve managed to sell about 10 units and expect the growth trajectory to persist,&rdquo; said the company&rsquo;s Head of Sales, David Karimi. Other developers that have announced major housing projects for Kiambu County over the next few days include Centum, Hydro Developers, Haco and many others.

Related;&nbsp;<a href="https://estatecloud.co.ke/kiambu-county-set-for-biggest-housing-project/" style="color: #ff6600;">Kiambu County set for the biggest housing project in Kenya with 30,489 units</a>

See Also;&nbsp;<a href="https://estatecloud.co.ke/kiambu-county-records-highest-increase-in-land-prices-in-the-country/" style="color: #ff6600;">Kiambu County records highest increase in land prices in the country</a>

Further Reading;&nbsp;<a href="https://estatecloud.co.ke/kiambu-pushes-for-ruiru-city-status/" style="color: #ff6600;">Kiambu pushes for Ruiru City status</a>

Developer to Build 1,959 Housing Units in Kiambu's Migaa Golf Estate

The Retirement Benefits Authority (RBA) is reviewing its policies to improve efficiency and increase pensions uptake in Kenya.

Among the proposed policy reviews according to the authority’s Chief Executive Director Nzomo Mutuku is a provision allowing pension holders the use of their pension policies to secure a mortgage loan.

The new regulations will enable pensioned Kenyans to use a portion of their accrued pension benefits as security against a mortgage.

As part of the reviews, RBA is planning an awareness campaign to increase the uptake of pension services. The number of Kenyans with pension policies is currently less than 20 percent, leaving out about 80 percent of the population due to lack of awareness and innovation.

Most Kenyans employed in the informal sector have been locked out of pension services for long due to the perceived complexity, cost concerns and limited product offerings. RBA aims to change this by reviewing pension policies and regulations to increase accessibility and simplify the claims process.

There has been an increase in initiatives from both government and private sector to increase mortgage accessibility across the country as part of the efforts to increase home ownership.

The Kenya Mortgage Refinancing Company recently announced that beginning April, banks will be able to offer home loans to Kenyans earning less than Ksh. 150,000.

Read; <a style="color: #ff6600;" href="https://estatecloud.co.ke/kenya-mortgage-markets-report/">Kenya mortgage markets update</a>

Estate Cloud

Estate Cloud

Chinese contractors lauded by IEK

By Estate Cloud - over 2 years ago - Kenya

RELATED ARTICLES

CONTACT

CONNECT

SUBSCRIBE