Kenya's housing prices remain stable besides slow growth

Kenya’s house prices remained stable in the third quarter of 2018 despite a reduction in the pace of growth according to the latest Kenya Bankers Association House Price Index (KBA-HPI).
During the quarter, house prices went up by 1.35 percent, representing a 0.41 percent drop from the 1.76 percent increase reported in the second quarter.
The KBA-HPI attributes the stability to price changes remaining below one percent, partly due to market dynamics being tilted towards the influence of demand conditions. It, however, notes that while house prices were generally steady, the gradual decline in the rate of growth experienced over the first three quarters of 2018 signals a reversal of the uptick observed from the fourth quarter of 2017 to the first quarter of 2018.

The Index adds that house prices are likely to be influenced by anticipated changes in the supply side once projects under the government’s affordable housing initiative within the Big Four agenda take shape, with the risk appetite of both developers and financiers also expected to adjust in line with the market dynamics.
“Despite the price increase, the situation in the market reflects subdued demand on the back of continued investments in the housing market which remained skewed towards the middle- and high-income bracket, ‘’ said KBA Research and Policy Director Mr. Jared Osoro.
Source- KBA