The clouds of political uncertainty from the recent elections are yet be lifted and so are its effects on the Kenyan real estate market. Cytonn reported the residential market as the worst affected real estate sector which slowed down by 3.2 percentage points due to dwindling demand as investors decided to hold on to their money or make short term investments rather than long term ones.
The market can however be expected to stabilize in 2018 with residential property leading this transformation.
Based on data collected on various online classified platforms in Kenya, Data Fintech’s has obtained a Real Estate Forecast Report for 5-bedroom houses in Runda. The report suggests that real estate investment heavyweights will do well to actualize investments in Runda from Q4 2017. This is because the report shows that 5-bedroom houses have raked in return as high as 17% in 2017 alone, with capital gains at 11.8% and rental yields at 5.2%.
While prices of majority of residential property dropped throughout Q3 and Q4 2017, the sale price of these houses in Runda currently stand at Ksh. 95 Million, the highest price in 2017 and are expected to retail at Ksh. 103 Million by Q2 2018. This makes it a perfect investment for investors willing to make some solid returns in the coming year.
In the case of purchases, investors may expect some marginal capital gains as an acre of land, currently listing for Ksh. 80 million is expected to increase to Ksh. 81 million by Q2 of 2018.