Multiple bedroom apartments took the longest time in the market before getting a buyer from when they were put on offer, forcing sellers to lower their asking prices.
A 2023/2024 real estate report from the Kenya National Bureau of Statistics (KNBS) shows that three-bedroom apartments off-take time was 19 months followed by a four bedroom at 18 months.
Two-bedroom townhouses and three-bedroom bungalows sold fast at six and eight months respectively.
“Overall, residential properties that were sold during 2023 took an average of sixteen months from the time they were advertised or put on offer for sale and the time they were sold (off take),” said KNBS.
“Two-bedroom town houses and three bedroomed bungalows took the least time at six months and eight months, respectively. On the other hand, three- and two-bedroom apartments took the longest time at 19 months and 18 months, respectively.”
A four-bedroom townhouse took 17 months to get off the market.
Two- and four-bedroom maisonette, one- and two-bedroom apartment and a three-bedroom townhouse took 13 months to get a buyer.
“The results also reveal that generally, a longer off-take time tends to reduce the actual sale price of the property. For example, properties whose off-take time was12 months or more fetched lower sale prices compared to the advertised prices except for one- and two-bedroom apartments.”
Two and four or more bedroom bungalows took a year.
The report revealed that the residential property market showed strong demand, with 76.2 percent of properties that were in the market having successfully sold in 2023 and two-bedroom bungalows and four-bedroom maisonettes having high sales rates.
Properties with surveillance cameras, parking spaces and backup generators attracted more customers and maisonettes having an edge of domestic servant quarters.
Overpricing has been a major hiccup for homebuyers and the reason for most properties staying long on the market.
Investors have come up with off take project financing plans to project the demand for a property before construction.
This type of agreement may be negotiated far in advance, often before the construction of manufacturing facilities and before production begins.
Offtake agreements can help buyers lock in a price and guarantee the supply of a product in anticipation of future demand.
The contract's provisions usually specify the purchase price for the properties and the delivery date, even though the agreement is reached before any ground is broken on a facility.