Investing in Land in Kenya: Over the recent past, the property segment in the real estate sector has been getting hit, with houses on auction dominating auction pages in the newspapers. But regardless of this turn of misfortune, real estate remains an ideal investment option in Kenya.
In particular, investment in land remains a top option that is guaranteed to offer returns. This year, all indicators point to growing demand for land in Kenya. And what better gain than to invest in a plot that is situated in a prime area. Take Kitengela area for example. A recent study report showed that land prices in Kitengela grew by at least 10 percent, pointing to a robust growth in land demand in areas outside but lose to Nairobi’s Central Business District (CBD).
In the same vein, over the last one and a half decade, buying and selling of land has experienced an exponential boom in Kenya. It has become the most sure bet for making wealth as urban centers grow and the demand for housing increases. One of the key drivers of this demand is the congestion and high prices inside Nairobi, which is driving people towards other prime areas.
“Land is a hands off investment and requires minimal attention or supervision. The most an investor can do to it is fence as evidence of ownership and pay land rates where applicable. It is also easy to grow the value of land by connecting water, electricity and constructing roads. Land is also a long term tangible asset that does not wear out. It appreciates in value over time and therefore likely to give more return in the long run. This means that investing in land will not be losing its value and worthiness in the near future,” says investment advisor Maylene Wacera.
In any given instance, every viable investment comes hand in hand with opportunists. In real estate, thousands of Kenyans have been left high and dry after getting conned when buying land. As a result, getting genuine real estate firms has become a top priority for every potential investor.
In the outskirts of Nairobi, one of the highly reputed companies selling land is Fanaka Real Estate. The company has taken over the land market in places such as Joska, Malaa and Kamulu along Kangundo Road.
Fanaka was was registered and incorporated as a limited company in June 2016. Over the past three years, the company has established itself as the company of choice for many Kenyans looking to acquire land, especially due to its presentation of ready title deeds upon acquisition.
The company is more favorable for low-income earners due to the affordability of its plots. For instance, the company sells an eighth (1/8) of an acre in satellite towns such as Kamulu, Joska and Malaa at prices as low as Sh. 399,000.
“Our projects mainly target people who under normal circumstances wouldn’t be considered wealthy. Our average price for land is Sh. 450,000. Most of the pieces of land we sell range from an eighth to a quarter of an acre,” says Fanaka chief executive officer Moses Muriithi.
The plots that Fanaka sells are located close to the Nairobi Central Business District (CBD). They are also located along Kangundo road and within a radius of 39km from the CBD. Kangundo road is currently under expansion to be made dual carriage from Caltex all the way to Malaa town.
So if you are planning to invest this year buying yourself a plot of land will be sure and worthy money bet. Investing in Land in Kenya.