Best places to invest in Real Estate in Kenya: Take a look at some of the places in Kenya where you bet your money in real estate:
Nairobi’s satellite towns
In recent years, Nairobi’s satellite towns have stolen the thunder as far as real estate investments are concerned. These include Kitengela, Kiserian, Athi River, Juja and Kangundo Road.
Land availability and reasonable prices in these locations – commonly referred to as Nairobi’s bedrooms – are key drivers for developers looking to cash in on the growing middle class. According to HassConsult’s land price index for the first quarter of this year, an investor is better off banking on land in these locations as opposed to stocks, bonds or treasury bills.
For example, a person who bought an acre of land in 2007 for a million shillings in these areas would have seen his investment rise to Sh6.4 million by beginning of this year.
A similar investment would have earned him less than a million shillings through the bond market in the same period. What if he had put the money in a savings account? He would have earned a partly Sh140,000 in eight years.
According to Pete Muraya, CEO of Suraya Property group, any high land costs in the city will have to be passed on to prospective home buyers hence the reason to build in the city environs.
“It is easier to buy an eighth of an acre in the outskirts and build several rental houses that building similar homes say in Githurai where there is a lot of county control,” he says.
However, he adds that the challenge in these areas is lack of efficient transport system that negates any gains made on home purchase or construction.
“You cannot build homes with the notion that everyone will be driving to work. The masses still rely on buses and matatus that may not be so reliable. The much talked about light rail mode of transport will be a game changer in satellite towns,” he says.
Laikipia plains have been termed as the ‘millionaire’s playground’ for a good reason. It is here that remnants of Kenya’s white settlers have dictated the lifestyle in Nanyuki and its environs for a long time.
Recently, the area has seen an influx of real estate developers who, just like those in Naivasha are attracted by the area’s natural attractions. Mount Kenya, the Aberdares and Loldaiga Hills loom large over the region. Also, Laikipia has the highest concentration of big game after the Tsavo ecosystem with large conservancies such as Ol Pejeta, El Karama, Borana, and Lewa defining land use here.
Add to these the mild weather and you have a perfect recipe for serious real estate development. Mount Kenya Holiday Homes near Naro Moru and Mount Kenya Wildlife Estate on the eastern corner of Ol Pejeta conservancy are among the big projects that have broken ground here.