A recent 2017 Cytonn Real estate sector review report, recorded that the sector had made an 11.3 per cent dip in its 2017 total returns to stand at 14.5 per cent, from 25.8 per cent recorded in 2016.
Despite the drop, the investment firm has outlined atleast 5 reasons why the sector is set to rise from its slumber this year.
The five include.
i) High housing demand and the large housing deficit at 200,000 units annually
ii) Improving infrastructure
iii) The growing middle class with higher purchasing power
iv) Government incentives to spur affordable housing development
v) Growing businesses and SMEs creating demand for office and retail space.
That said, Cytonn has however cautioned investors, asking them to conduct research to identify the niches in the market given the increased focus by institutional developers, which, while clearly an indication of growth, will result in stiff competition as clients and investors demand quality developments.