At least 54 percent of those in urban centers still prefer buying a home through personal savings as opposed to taking a mortgage or home loan.
The latest State of Urban Home Ownership in Kenya survey reveals that this is due to high interest rates that still weigh heavily on the cost of houses.
The survey was carried out by the Kenya Bankers Association that on Tuesday launched the Housing Price Index to help potential home owners or investors find the most competitively priced houses going forward.
Demand for housing continues to shoot a factor that might as well be driven by the increasing middleclass and improved infrastructure.
Annually demand currently stands at 250,000 units against a supply of 50,000 units.
These notwithstanding, a number of factors still hinder a majority in urban centers from owning their dream homes.
The latest State of Urban Home Ownership in Kenya Survey indicates that 67% think homes are expensive, 56% face financing challenges while 38% think interest rates are high.
Most Kenyans shun mortgages due to high interest rates. Only 20% of future home owners are willing to take up a mortgage while 6% of the current home owners took up mortgage. 68% construct their houses, 17% buy houses and 15% inherit.
The Kenya Bankers Association has also introduced the Housing Price Index that will highlight real estate market trends to help potential home owners or investors find the most competitively priced houses.
source:kbc
