Housing Finance Group has announced completion of its Kshs 1.9 billion Richland Pointe whose construction begun in 2016. The development which contains 248 two and three bedroom housing units will see buyers pay Kshs 8.5 million shillings for a two bedroomed unit while Kshs 9.5 million shillings for three bedroomed house.
According to HFG Chief Executive Officer Robert Kibaara, the project was developed under a joint venture vehicle involving the group and Richland Dam Estate Limited. The deal saw Richland Dam Estate provided land in Kamiti Road off Thika Road where the project sits while HF provided equity equivalent to the land value.
“Our mission is to empower Kenyans to own property specifically affordable housing with modern features and amenities that improve the quality of life for individuals and communities both now and in the future. We have a strong legacy in property development and mortgage finance and we will continue to leverage this strength to turn our customers home ownership dreams into reality.’’ Kibaara said.
Earlier in the year, the Group launched the Shika Nyumba Na HF property sales promotion that provides customers with discounts of up to 30% on 700 ready homes, with mortgage financing available from HF. This campaign has seen an accelerated uptake rate with over 100 units sold in the first 2 months of the campaign. Housing Finance has recently embarked on transformation strategy with targets to build a digital bank and maintain its market share in mortgage financing.
With housing demand in Kenya pegged at 200,000 annually, Housing Finance says it is targeting to deepen investments under affordable housing. “HF is committed to the affordable housing agenda and will continue to deliver on this fundamental human right and make home ownership a reality for the majority of Kenyans. Moving forward, the business will concentrate its efforts on mortgage financing to end buyers,’’ Robert Kibaara added.
Speaking during the handover ceremony of the houses to buyers, Richland Pointe Chairman Stephen Njoka acknowledged the importance of incentives to real estate developers such as identifying land for development, faster project approvals and mortgage subsidies to spur uptake of housing units.
A recent report by HassConsult indicated that high end housing market is facing a glut as completed residential and office spaces remain unoccupied months after construction was completed. HF is one of the few players that have invested in the Kenya Mortgage Refinance Company (KMRC), which is set to unlock funds for lending to developers and buyers.
This is poised to accelerate affordability of housing in line with the Housing Pillar of the Government’s Big Four Agenda. The Kenya Mortgage Refinance Company is aimed at shielding banks, Micro Finance Institutions and housing societies from shocks associated with long-term mortgage financing and help in accelerating construction of half a million affordable housing units.