When Monica Cherotich, a Nairobi-based medical practitioner, heard about low-cost housing units coming up in Mtwapa on radio one morning, she immediately contacted the agent.
“I could not believe that with Sh2.5 million, I could own a one-bedroom apartment,” she says.
Even before she travelled to Mombasa to view the plot on which the apartments were being built, she immediately paid a Sh500,000 deposit. “I told myself, ‘This is the opportunity you have been waiting for, so go for it’. I am glad I paid the deposit because most of the plots have been taken,” she adds.
For instance, the Billionaire Heights Apartments in the area has 20 studio or bedsitter units, a segment of the property market that has largely been ignored by developers.
The apartments, located on the Mombasa-Malindi road, also comprise 60 one-bedroom and 70 two-bedroom units.
“Looking at the market today, you realise that there are few investment opportunities for the middle-income investor in Kenya. There are many people who are ready to buy a unit for Sh2 million, as long as it is spread over a comfortable payment period,” says Goldwyne Consult Chief Executive Officer Ben Mutuku.
“Construction is expensive because of the many walls and corridors that are incorporated in a building. We have decided to do away with these corridors, which has resulted in maximum use of space and huge savings on materials. The built-up area is the same but the rooms are spacious,” he says.
While a studio apartment is selling for Sh1.8 million, the one and two -bedroom units are going for Sh2.5 million and Sh4 million respectively.
The development is targeting investors who will buy the units to rent or to use as holiday homes, which they let out when not in use.
Mr Mutuku estimates that if an apartment is occupied for at least 10 months in a year, the investor will recover the principal amount invested within three years.
Goldwyne is not the only developer targeting middle-class investors in Mtwapa. Kenya Projects, which is also a financial services firm, is also building housing units selling for between Sh1.5 million and Sh3 million.
