5 Reasons Why Kenya’s Real Estate sector will rise from its slumber in 2018

IMAGE: Beglin Woods

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.

READ: Kenya’s Real Estate Sector Records 11.3 Per Cent Drop In Total Returns

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

and

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.


For feedback, email ; biznewske@gmail.com

About the Author

Muhatia
Trust is my currency, biscuits are my best snacks. A business story by me that has sparked change, informed and made a positive difference is what makes me going. I yearn to achieve more through writing Reach me via editor@biznews.co.ke