Demand
for good quality accommodation in prime areas is driven by expatriates,
primarily from oil & gas/energy companies, banks and financial institutions
sector, diplomatic missions, and aid agencies. In addition, Diasporas have been
driving demand up to some extent in Kenya. This has led to a stagnation of
development projects, particularly in the mid-market segment. High-end
residential property sales remain largely unaffected. Recognizing the need for
housing in the low- and mid-market segments, national governments have been
making efforts to provide affordable low-cost housing by allowing higher
densities within cities and opening up new nodes in the outskirts.
Although, high
construction and finance costs are a barrier: The high mark-up on costs is
usually the difference between purchase price and transportation costs.
Moreover, the lack of easy access to finance, and the high mortgage lending
rates has resulted in a stagnating market for home ownership. Furthermore,
the poor quality of construction in commercial as well as residential space has
resulted in lesser take-up of such properties, leading to dead supply stock in
the market.
Take up
this opportunity and invest with us at Ndatani Enterprises Co Ltd.
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