Sentiments in the Kenyan real estate market are turning optimistic according to Vaal Real Estate, a local realtor. Prit Shah, Sales Manager at Vaal Real Estate described the market as ‘positive’.
“Kenya is one of the most stable markets in the region both politically and economically. We are not depending on any natural resources we depend on business alone.”
He adds that the market has not been hit as hard by the Covid-19 pandemic compared to other countries have.
“By the middle of next year, We see when two of our projects lift off, there will be a high rise in demand. In fact, homeowners or investors need to buy right now because the prices are definitely going to go up as we get rid of this COVID issue,” said Prit.
He was speaking during the handover of their Ksh 2 billion residential property dubbed ‘Moon Valley Luxury’ apartments in Kileleshwa.
The one, two, and three-bedroom apartments are sophisticated and luxurious inspired by the glorious sand-castle designs in Dubai.
“We have provided a very nice hotel-themed residential area with great amenities. So, this building will be like the most talked-about development for the next couple of years. We have gone over and above in terms of the costs, but just to make sure that we’re bringing the Dubai style theme,” says Prit.
“Not all of these are going to be completed next year or the year after. We’ve got two more projects lined up. We are focusing on the high-end areas. So we’re looking at Lavington or Westlands next. The high-end market forms a very, very big share of this Kenyan real estate market. Our main concept so far has been studio one, two, and three bedrooms,” says Prit.
“So within the development, we want to make it more of a mixed for one to live in for homeowners and those seeing to buy, to invest,” he adds.
Knight Frank’s ‘The Africa Residential Dashboard report H1 2020’, found out that Kenya’s average prime residential prices in Nairobi declined by 2.9 percent compared to a decline of 1.8 percent in the first half of 2019, pushing the annual decline to 5.1 percent in the year to June.
Prime residential rents also declined over the review period by 6.55 percent compared to 1.67 percent over a similar period in 2019, taking the annual decline to 7.62 percent in the year to June.
“The decline in both prime residential rents and prices is mainly attributed to the continued oversupply of residential developments, unfavourable economic climate, low liquidity, and expatriates returning to their home countries. We expect prime residential rents to decline in the second half of 2020 due to the projected negative economic growth, tighter liquidity, continued relocation of expatriates and less disposable income from potential tenants. Prime residential prices are also expected to decline albeit at a slower rate,” part of the report read.