Three bedroom apartment to let in Westlands

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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

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Market, Along Manyanja Rd, Nairobi, Kenya

Umoja block sale apartment

4br townhouse own compound

MOONVALLEY 2br kileleshwa

Studio, 1-3 bedrooms Apartments

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3-Bedroom Apartment+Dsq.

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Yaya Centre, Argwings Kodhek Road, Nairobi, Kenya

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3 Bedroom Master En-suite + Dsq

3-Bedroom (Two En-suite) at Kileleshwa

One-Bedroom Furnished Apartment

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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

Land investments still fetch the highest returns in Kenya over the long-term, more than other asset classes.

According to the latest release of the Hass Land Price Index, Ksh. 1 Million invested at the end of 2007 would have been worth KSh. 9.01M if invested in land in Nairobi Satellite-14, an increase of 901% over the period.

The same amount would have grown by 624 % if invested in land in Nairobi Suburbs-18, and 238% if invested in property according to the Hass Property Sales Composite Index.

The data by Hass Consult shows that land in Nairobi Satellite-14 areas (index value of 900.8) outperformed Nairobi Suburbs-18 which had an index value of 624.3, Gold 234.4, Live Cattle (CME) 119.2 and Crude Oil with just 54.1 index value. The average value for land has gone from 2.4 million in December 2007 to 22.0 million in December 2020.

The Nairobi Satellite-14 Land Index is representative of Land for Sale in 14 Satellite towns outside Nairobi suburbs.

Land value in Nairobi&rsquo;s satellite towns rose sluggishly over the last quarter of 2020 at 0.35 per cent according to the index, while registering an unprecedented fall of 1.1 per cent over 2020 compared to a 6.93 per cent rise in 2019.

In&nbsp;2020, the highest annual price falls in land value was experienced in Parklands at 7.35 per cent over 2020 followed by Riverside at 7.2 per cent while Muthaiga recorded the highest annual increase in land prices with 3.91 per cent increase.

Africa Proptech Forum is set to take place at WeWork’s first African office location, The Link, Johannesburg on the 1st of October 2019 during the 10th annual Africa Property Investment (API) Summit.

The Proptech forum will provide selected startups with an opportunity to pitch their disruptive business models to Africa’s most high-profile real estate investors and developers.

Funding for Proptech has grown significantly from $20 million in 2008 to an average of $12bn annually since 2016 with the number of startups and seed funding rising each year. This has attracted significant attention from private and institutional investors.

“The opportunity to pitch to a high-profile and diverse gathering of capital players is fundamental to the growth of this emerging sector,” says Proptech Africa co-founder Sean Godoy, especially as more and more venture capital funds look to Africa’s growing markets for the next big Unicorn.

Defined as the use of information technology (IT) to help individuals and companies research, buy, sell and manage real estate, Proptech is still emerging in Africa says Godoy. But with 6,000 Proptech firms registered globally according to event partner, Unnisu, this new frontier will play a key role across every aspect of real estate on the continent.

Data and its role in attracting investment

“A number of startups especially in Nigeria, Kenya, Ghana, SA, and Botswana are pioneering the use of digital technology to leapfrog ahead and overcome traditional market challenges, such as land titles, mortgages, leasing, tenants, while also providing greater improved data and transparency for investors seeking to invest in new markets and assets,” says Godoy.

The improvement in data collection for the API Summit’s Kfir Rusin is important as “it mitigates one of the continent’s historical pain points, while also showcasing the scale of opportunity and value for investors considering investing in Proptech.”

Pitching and Networking 

“Proptech in Africa represents a significant billion-dollar opportunity and to host at WeWork, one of the World’s most transformative and high-profile startups is an example of the opportunity that Proptech Startups have on the continent,” added Rusin.

The rampant proliferation of Proptech, and subsequent investment, is due to the inherent vertical integration opportunity between real estate and technology across the entire value chain says Godoy.

Read; <a style="color: #ff6600;" href="https://estatecloud.co.ke/property-technology-continues-to-attract-venture-capital/">Property technology continues to attract venture capital</a>

Construction of the Sh498 million wall to protect Fort Jesus Museum from being washed away by heavy tides from the Indian Ocean will go on after the Naltional Land acomission gave the red green light. Speaking at the site yesterday, NLC chairman Muhammad Swazuri said the commission has approved the construction.

Swazuri and Mombasa Governor Hassan Joho had earlier stormed the site and ordered the National Museums of Kenya (NMK) to stop work over allegations that NMK was in the process of reclaiming two acres of ocean land, contrary to an application made to only erect a wall.

NMK National Director Mzalendo Kibunjia dismissed the claims, saying part of the space that Joho and Swazuri had claimed was being reclaimed was for purposes of putting up a cofferdam.

A cofferdam is a watertight enclosure built to allow construction work below the waterline. Swazuri’s remarks come at a time when Mombasa risks being deregistered from being a protected island by United Nations Educational, Scientific and Cultural Organisation (Unesco), following massive land reclamation that has turned the coastal city into a peninsula.

Deliberate land reclamation has defaced the historical status of the island.

The commission said it will revoke all leases and allocations of private and public lands issued by county governments and other state agencies without its approval. Swazuri said the illegal leases include those issued by coastal county governments to reclaimed lands along the coastline which he termed as illegal.

NCL listed Mombasa, Kilifi, Kwale and Lamu counties as notorious for reclaiming sea land without authority from the agency.

Source; <a href="http://www.mediamaxnetwork.co.ke/news/401638/sh498m-wall-protect-fort-jesus-tides/" target="_blank" rel="noopener">Mediamax</a>

﻿Construction of Sh. 498m Wall to Protect Fort Jesus to Continue

The government has proposed an allocation of KES 15.5 billion to the housing, urban development and public works sector in the Budget Statement released by the National Treasury for financial year 2020/2021.

In the budget, the government has allocated KES 6.9 billion to cater for the Affordable Housing Programme, KES 7.5 billion for the Kenya Urban Programme while KES 1.1 billion for the ongoing construction of Gikomba, Githurai, Chaka, Kamukunji and Dagoretti markets.

The Ministry of Transport, Infrastructure, Housing and Urban Development, also received KES 172.4 billion to improve and expand the existing infrastructure.

Addressing the National Assembly, Treasury CS Ukur Yattani said the Government had established the Kenya Mortgage Refinance Company (KMRC) whose to provide long term funds to primary housing mortgage providers in the housing sector.

He said the company will offer fixed rate long term loans at concessional rates to mortgage providers who are expected to pass the benefit to citizens at lower than market rates.

The company has raised a capital of Ksh 2.0 billion while the National Treasury has mobilized an additional Ksh 35 billion from development partners to support the Company’s operations.

Other international and financial institutions including six local banks have agreed to pump KES 300 billion into the company to help Kenyans buy affordable homes. The government's meagre allocations to affordable housing point to the fact that the programme will be largely funded by private capital.

The Treasury CS also mentioned that the government is in the process of operationalizing the Nairobi International Financial Centre (NIFC) to attract investments and private capital to support economic growth and mobilize financing for “Big Four Agenda” projects and Kenyan businesses.

The government is moving to eliminate tax relief for income due to Home Ownership Saving Schemes with respect to HOSP deposits. The move is expected to reduce the income available for distribution to depositors as interest, negatively impacting their ability to purchase homes.

The National Treasury has revised its economic growth estimates from 6.1% to 3%.

Read; <a style="color: #ff6600;" href="https://estatecloud.co.ke/4911-2/">Proposed tax changes not good for homeowners and investors</a>

Affordable Housing to Get Ksh 6.9 billion from Budget

Forum provides opportunity for property start-ups to pitch

Nairobi’s office market closing stock stood at an estimated 620,000m2 according to JLL’s Nairobi City Report for 2017. In recent years, demand for office space has shifted to nodes outside the heavily congested and dilapidated CBD led by large corporate tenants on the demand side and a construction streak lead by insurance companies on the supply side. Even small and medium enterprises have jumped at the opportunity to claim their share of the brisk shiny new office spaces available.

With the surge in supply, finding office space may be relatively easier. Every market has various types of office space.

Office space is generally graded into three categories which reflect the overall quality of the office space. The overall quality in a broad sense represents the ranking in terms of parameters such as location, security, accessibility, maintenance, aesthetics et cetera.

Grade A

Refers to the yard stick of all other office space in the market. Usually, these are characterised by excellent prime locations, seamless accessibility, monumental architecture, top-notch tenants and professional management in addition to the highest rental rates in the market. Due to market dynamics however, grade A office space is not static standard and what might be considered as grade A in market X could be grade B in another market and vice-versa. In Nairobi, these kind of offices will mostly be found in locations such as Upper Hill, Westlands, Mombasa Road and Gigiri.

Grade B

These refer to those buildings that fall short of being classified as grade A. Although they are also functionally well packaged, they usually lack the sort of superior clout associated with grade A buildings. They have the average to above average kind of location, accessibility, infrastructure and security and therefore an alternative to those tenants who cannot make good the consideration for grade A office. Grade B office space is also characterised by older buildings some of which have been downgraded from grade A over time.

Grade C

Every market has mechanisms to provide for all market segments. Grade C office space caters for those tenants who prefer low rental rates at the compromise of location, accessibility and high quality maintenance. They are of a much lower cadre compared to grade A and B offices even though some grade C offices are not in actual sense office buildings but extensions of other businesses. Grade C buildings are much older than grade B buildings and in some cases may need extensive repairs. Class C commercial buildings are usually the target for urban regeneration initiatives.

Whatever type of office you require this year, there is currently more than enough in the market.

In this whole commercial office enterprise, nothing stands out as the monumental grade A office space or the dilapidated grade C office buildings.

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Global prime property markets have shunned increasing growth, declining to an average growth rate of 1.3 per cent from 4.3 per cent just two years ago.

'The Prime Global Cities Index, which tracks the movement in luxury residential prices across 45 cities globally, registered its lowest rate of annual growth since the final quarter of 2009, when the world was in the grip of the financial crisis.'

The index featured two African cities, Cape Town and Nairobi, with the index showing that Cape Town was the better performer. The South African city recorded a price growth of 2.1 per cent over the past year ending in the first quarter of 2019, beating global property renowns like London, New York, Hong Kong and Monaco.

However, Nairobi’s luxury property markets were downbeat over the past one year, recording a price decline of up to -6.5% and -0.5% in the first quarter of 2019. The chief occasion, an oversupply in the city's high-end markets beyond the local levels of opulence, left high-end suppliers with only so much demand and the market correction set in.

The index ranked Nairobi at 42 out of the 45 cities surveyed. Following the economic events, high-end development a have somewhat subsided, but not completely.

The index, cites the slowing rate of wealth creation globally in 2018, political and economic headwinds, trade war threats and Brexit woes as some of the adverse factors to the markets leading to the decline.

The IMF projects that 70% of world economies will face a slowdown in 2019

Strong cities (mostly European) whose market beat the index, showed characteristically strong tenant demand, limited new supply and relative affordability. Seven of the top ten performing cities were European.

The Index is a valuation index tracking the top 5% of housing most markets in most cities. According to the index, on average the prices of luxury property have risen by 57.4% over the past decade.

Read; <a style="color: #ff6600;" href="https://estatecloud.co.ke/swiss-international-hotels-resorts-to-operate-sagana-resort/">Swiss International Hotels &amp; Resorts to operate Sagana Resort</a>

Nairobi prime real estate among the most affected globally

PwC's report, Hotels Outlook; 2018-2022 provides perspective on how the hotel industry in the major markets of Africa including South Africa, Nigeria, Mauritius, Kenya and Tanzania is expected to unfold over the next five years.

Overall, the report points that Africa’s hotel sector has the potential for further growth over the next five years, citing increase in the number of foreign and domestic travellers as a major driver of growth.

Kenya’s tourism sector growth sustained momentum in 2017, helped by the launch of the Standard Gauge Railway (SGR), which has made travelling within country much easier and less time consuming. New international hotel openings and an improvements in the country’s security status also made Kenya the attractive destination it had always been prior to the surge in terrorism in the region.

Related; <a href="https://estatecloud.co.ke/accor-hotels-and-katara-hospitality-set-up-1-billion-fund-for-hotel-expansion-in-africa/">Accor Hotels and Katara hospitality set up $1 billion fund for hotel expansion in Africa</a>

Last year, the sector's growth was briefly interrupted following the Supreme Court ruling, after which normalcy returned around December. Overall, tourist arrivals grew 9.9% in 2017 compared to 13.7% in 2016.

In addition, hotel guest nights which were expected to grow at a rate of 6%, fell 19% during the latter part of the year in response to the election uncertainties, leading to an 8.3% decrease for 2017 as a whole. The average daily rate (ADR) also declined, falling 5.7%, leading to a 13.5% decline in hotel room revenue in 2017.

With things returning to normal, the PwC project that inflation will drop to 4.5% for 2018 and to average 4.1%, compounded annually through 2022. They also expect a 9.1% increase in guest nights for 2018 as a whole and tourist arrivals to Kenya to increase 8.8% in 2018.

This is based on the impending launch of direct flights to the US by Kenya Airways, a development expected to increase tourist volumes, the tourism sectors marketing initiatives within Africa and concerted efforts to market the country as a tourism destination.

Also Read; <a href="https://estatecloud.co.ke/muranga-hotel-boom-key-for-countys-hospitality-sector-growth/">Murang’a hotel boom key for county’s hospitality sector growth</a>

According to the report, 13 hotels will enter the market over the five-year forecast period, adding a total of 2 600 rooms which accounts for a 14% increase in hotel capacity and a 2.6% compound annual increase in room availability from 2017

Of the five countries analysed, Nigeria’s hotel sector is expected to be the fastest-growing in Africa over the next five years with the number of hotel rooms expected to rise from 9, 700 in 2017 to 12,600 over the forecast period.

Next; <a href="https://estatecloud.co.ke/hotel-brands-expansion-creates-development-opportunities-for-nairobi/">Hotel brands’ expansion creates development opportunities for Nairobi</a>

Estate Cloud

Estate Cloud

Land Investments Returns Remain One of the Highest Among Asset Classes

By Estate Cloud - over 2 years ago - Kenya

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