The Diaspora and Real Estate in Kenya: What You Should Know
Kenya’s real estate market has witnessed significant growth in the last five years, outperforming other sectors like the capital markets and tourism in the midst of economic downturn due to the COVID-19 pandemic.
While high interest rates have slowed down construction, stakeholders reckon that the industry as a whole is still growing fast. In fact, they argue that the diaspora community and foreign investors sourcing financing from outside Kenya stand to benefit.This is given that house prices are not likely to fall due to high demand and inadequate supply.
People in the diaspora are in the best position to invest now using affordable foreign loans of 4-8 percent. We encourage them to buy now while pricing is affordable as the economic development of East Africa is creating huge opportunities. Prices of properties will keep on rising. The question however is, how fast will they rise?
Real estate is one of the most productive sectors of the Kenyan economy, promising better returns.The benefits of investing in real estate are numerous and exciting. Hence, investing in Kenyan real estate offers a wonderful opportunity to maximize your income potential and build wealth. With the diverse prospects available in carefully selected assets, investors are guaranteed substantial cash flow, tax advantages, and excellent returns.
As a Kenyan living abroad, investing back home offers you a chance to contribute to the growth and development of the country too. Aside from this, you will experience a sense of fulfillment knowing you have a place to lay your head when you return/visit home, or just have the peace of mind that a good investment brings. Remember Daykio ni home!
What you need to know as you prepare to start the journey:
- Determine your goal –
Not having a clear idea about your goal before you commence your investment journey could eventually cost you down the line. Ask yourself important questions like;
- Am I looking to buy a home I’d come back and settle into?
- Am I looking to buy a home to resell or rent out as a passive revenue stream while I’m in the diaspora?
- Am I seeking to buy/build non-residential structures?
- Am I looking to buy land for farming or production?
Setting a clear, and achievable goal at the start is very essential as this sets the pace for the rest of your experience.
- Scout for the right location –
If you can’t travel down, it’s understandable. Hence, you will need to find a trusted person or agency to scout the perfect location for you. You should work with a professional to make this process easier. A lot of people parading themselves as brokers and agents in Kenya are not licensed and they can pose problems for you.
Here at Daykio, we are experienced professionals driven by the market need to provide luxurious and functional housing that works for you, at great pricing. We have put together innovative, high-quality, and modern housing solutions for all market segments.
- Engage licensed professionals –
You should engage the help of a licensed real estate agent/property expert every step of the way. This could include a lawyer to help you draft every necessary legal document, and a surveyor to help you confirm the identity and location of the property as it relates to the registry index map. Using the help of a registered professional gives you a peace of mind knowing the affairs of your property are in trusted hands.
- Don’t conclude a transaction without being convinced –
Even if you are dealing with a licensed realtor, you may experience some form of worry during the process of purchasing property in Kenya while living overseas.
You might constantly ask yourself questions like;
- How do I know I’m buying the right property?
- How do I know I am buying in the right place?
- How do I know I am buying from the right person?
- How do I know I’m choosing the right city when I’m not in touch with the trends?
These are legitimate concerns. So, ask questions to clear your doubts, and have experts look at the details for you. You could also request a thorough physical or virtual tour of the property which we can accord you. Modern technology means standard real estate providers can offer this service which might just be the deciding factor that seals your conviction.
All in all, real estate investments are risky so doing your homework is essential, and it is equally important that you keep learning. At Daykio, we are available to listen and understand your real estate needs in order to mitigate your risk. Get in touch with us for guidance, as well as sales, and letting.
We have a scheduled mini open day on the 26th of February 2022 to Koma view estate please feel free to register using this link:https://daykio.com/daykio-plantations/komaview-estate/#register and for our success stories click: https://youtu.be/i7uly-u1Vxc to watch.
For more diaspora insights, click: https://daykio.com/daykio-plantations/diaspora/
