Opinion and Analysis
Why property prices are slowing down
Posted Sunday, February 12 2012 at 20:27
What does one do with bagfuls of money they cannot easily spend or ship out? It’s now harder to seize vessels in the Indian Ocean and to effectively move any piracy proceeds beyond Somalia. With diminishing cash, properties in the front line towns may get harder to move.
This reality was brought home faster as I discussed property trends with a real estate agent who had opened an office in Eastleigh. He told me that he closed the office soon after operation “Linda Nchi” got under way. A government statement that the head of Al Shabaab was in Eastleigh hadn’t helped matters business.
What with wheeler dealers expecting security personnel to subsequently descend on the suburb. He told me that nobody was chasing property anymore. Buildings for sale or rent weren’t moving…..a nightmare scenario for any estate agent. He moved out to cut losses.
The slowdown in Eastleigh could inform “errant” property prices elsewhere within Nairobi. I doubt Mombasa, Garissa, Kitui and Mwingi will be spared. And movement of prices in Nairobi and Mombasa could have a gradual ripple effect countrywide.
It’s good for market stability though.