Analysts suggested the rush by buy-to-let landlords, second home
buyers to and buy land to speculate beat the rise in stamp duty had pushed
prices up.
Kenya land price growth has picked up to hit
an annual rate of 10.1%, a one and a half year high, but could ease in coming
months according to the country’s biggest mortgage lender.
The price of an average 1/8th acre
plot rose to Kshs. 500,000 in March, up 12.7% from the month before. Land
prices in the three months to March were 2.9% higher than in the final quarter
of 2015. The annual rate rose from 9.7% to 10.1%, the strongest since the three
months to July 2014.
However, the next two months could see a lull,
as Ndatani M.D. Mr. Alex Muema, explained: “Worsening sentiment
regarding the prospects for the Kenya economy, falling banking industry and
uncertainty ahead of the Kenyan general election in August, 2017 could result
in some softening in the land market over the next couple of months.”
But in the long run, land prices are likely to
push higher as demand continues to outstrip supply, experts say.
Alex noted: “Current market conditions remain
very tight with an acute supply/demand imbalance continuing despite an
improvement in the number of properties coming on to the market for sale in
recent months. This, together with continuing low interest rates and a healthy
labour market, indicate that land price growth is set to remain robust.”
Prices of flats have risen more sharply than
prices for other property types since 2008, rising 57% compared with a 37%
increase for all residential properties.
Concluding on the experts advice, this the
time to invest in property.
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