Part of the Tassia housing development scheme in Embakasi. Photo/FILE
What you need to know:
More than 1,200 planning applications were made in Embakasi over the past year driven by demand for homes from the middle class.
Kilimani, Kileleshwa and South “C” had over 750 planning applications each, especially from developers of apartment blocks following the rezoning of the area to multiple-dwelling units.
KPDA and Hass Consult said availability and cost of land were important in attracting developers to an area as well as restrictions on minimum land size and building type.
Embakasi is Nairobi’s leading property hotspot, with developers attracted by availability of land in the area and ease of getting building approvals, a survey report shows.
The survey done by the Kenya Property Developers Association (KPDA) and Hass Consult shows that more than 1,200 planning applications were made in Embakasi over the past year driven by demand for homes from the middle class.
“In Embakasi there has been demand for housing because it is a middle income area, and there is a conducive zoning policy meaning you can build a little bit more per plot. In other areas like Karen the development is because of availability of land,” said Hass Consult property development director Farhana Hassanali.
Kilimani, Kileleshwa and South “C” had over 750 planning applications each, especially from developers of apartment blocks following the rezoning of the area to multiple-dwelling units.
KPDA and Hass Consult said availability and cost of land were important in attracting developers to an area as well as restrictions on minimum land size and building type.
The high rate of property development in Kileleshwa and Kilimani and South-B, may however be coming to an end with the available space for development running out.
The report said Kilimani now only has 12 vacant plots. It warned of oversupply in the area going by the price crash for three-bedroom luxury apartments last year.
Resident associations also emerged as a factor in the pace of development, with survey giving the example of Runda where the neighbourhood lobby has a say in virtually all settlement issues including utilities, sub-divisions, change of user and type of building to retain the area’s exclusivity.
The KPDA report shows that there were less than 100 applications for development despite there being 470 vacant plots suitable for development. The high cost of land could also be a factor. Other areas with less than 100 applications were Lang’ata, Kibera, Industrial Area, Thome, Zimmerman, Githurai and Ruai.
These areas have high density developments with limited land available for new projects, while others like Thome have larger plot sizes. Lang’ata was affected by the continuing road works that have increased traffic jams in the area, a situation similar to the lower demand for housing along Thika Road during the reconstruction of the highway.
KPDA said large-scale developers faced high interest rates, frustrating the government’s target of 200,000 new housing units per year.
“Interest rates are now pegged with a far greater margin going to individual commercial banks than was previously the case. The banks’ gain is the developers and house buyers’ increased bill,” said KPDA vice-chairman Mucai Kunyiha. The association said only 15,000 new units were put up in 2013, with nine out of 10 being apartments.
“It is important that we face the consequences of this shift in terms of resulting deceleration in building ,” Mr Kunyiha added.
