The real estate market was significantly affected during the pandemic, which lasted for about two years. This brought about a go-slow in real estate and the world market as a whole. However, this year there has been a bounce back in this market that has caught many investors’ attention. This is due to the 6.1% growth rate in Kenya’s real estate sector during the first quarter of 2022.
These are some of the reasons why you should invest in Kenya’s real estate market:
Infrastructure development
Development in the infrastructure sector plays a significant role in achieving real estate goals. According to Budget Statement for the FY’2022/23, the infrastructure sector received 212.5b this year, which is an increase of 30b from the 182.5b allocated last financial year. Infrastructure opens up regions to investment opportunities and economic growth. This is mainly due to better roads, electricity, and internet connectivity which has made remote areas attractive land to invest in.
Population
Kenya’s population growth rate of 2.3% p.a is relatively higher than the global average which is 1.0% p.a. This has led to an increase in housing demand. Moreover, the housing market in the country is primarily a rental market. This gives investors an incentive to purchase land and build rental units unit which in turn draws in a lump sum return of investment over the years.
As for homeownership, there has been a rise in this demand. The youth, also known as generation rent, are shifting their views from staying in rental homes to saving up for their own homes, releasing them from the shackles of rent to financial independence and security. Families have also changed their tune to acquiring family homes either by building or purchasing. This is because they would like more space, reduced traffic, and the serene environment the suburbs have to offer.
Great Foreign Investor Policies
The potential for a higher return on investment is higher compared to other jurisdictions. It is also simpler for foreign investors to penetrate the real estate market. The country has shown great improvement in transparency due to an increase in regulation in the real estate industry. In addition, there has been an increase in consistent data on Kenya’s real estate market by private firms and international advisors. This helps the country’s quest in becoming the economic hub of East Africa.
Investors from the US, Canada, South Africa and many more are investing in commercial space and setting up shop like Google, Cisco Systems, and Microsoft. Foreigners and expatriates prefer serviced apartments to hotels due to the ‘home away from home’ feel which has led to housing demand.
Foreigners are allowed to own properties in their name. This is in accordance with the Constitution (2010), the Lands Act (6/2012), and the Land Registration Act (3/2012), subject to certain limitations, that grant the right to any person, either individually or in association with others, to acquire and own land in Kenya. Therefore, foreigners should be wary of being misled about this.
There are many reasons why you should invest in Kenya’s real estate market, whether you’re based domestically or a foreigner. At Daykio, we aim to make your investment journey as smooth as possible by providing you with excellent service and customer support. To view our properties, use the link below and start your land investment journey today https://daykio.com/daykio-plantations/property-listings/
