Market News

Developer seeks nod for Sh11bn Kiambu housing project


A golf course. Those insensitive to posterity remain keen to convert golf courses to real estate. FILE PHOTO | NMG

A developer is seeking regulatory approval to put up 1,959 units of residential apartments within the Migaa Golf Estate in Kiambu County.

According to regulatory filings received by the National Environmental Management Authority (Nema), Sycamore Pine Limited has secured 17.2 acres of land from Migaa and intends to develop the proposed Samara Estate, comprising two and three-bedroom houses.

“The proposed project phase one is already funded and estimated to cost Sh1.4 billion. The entire project implementation works is estimated to take three years to completion,” said the developer in the filings.

Housing Principal Secretary Charles Hinga last July presided over the launch of the project, whose overall investment was at the time set at Sh11 billion. The units will be sold from Sh2.95 million and 3.95 million for the two bedroom and three-bedroom apartments respectively, the developer said then.

The strong appetite for property in Kiambu, which has the advantage of proximity to Nairobi, has in recent years seen coffee plantations pave the way for gated housing estates, shopping centres, and industrial infrastructure.

Economists say that the land owners are mainly responding to urbanisation pressure around Nairobi and its impact on demand for housing, especially in the middle class which has been enjoying rising income.

Although the real estate sector has underperformed in the last two years, it retains an allure for investors due to Kenya’s housing deficit that increases at 250,000 units a year with the private sector able to deliver about 30,000 units a year.

The affordable housing space is increasingly attractive as one of the few growth areas in the sector, given that this is the area with the biggest supply deficit.