The real estate business is booming despite challenges posed by the Covid-19 menace and lately the war in Ukraine.
One of the major reasons that have led to the thriving of the real estate sector was the ongoing construction of affordable housing by the government and private developers — thus involving affordable mortgages through the Kenya Mortgage Refinance Company.
The improved infrastructure in urban centres, electricity, water and massive rural-urban migration have also boosted the sector.
The construction of expressway, southern, eastern and western bypasses have made things so positive for those in real estate businesses.
However, the government should do more by continuing to support the real estate sector. Even though the sector is thriving it, at the same time, faces many challenges including reduced lending, which stands at 3.9 percent. The increased number of loan defaulters is another challenge the real estate sector or businesses face.
The rise in prices of construction materials such as steel, paints, cement, building stones, roofing nails, tiles and ceramics, among others, cannot allow the real estate sector to thrive so much.
Expensive building materials have slowed down the performance of the real estate sector.
The first quarter of 2022 has seen an increase in activities of the real estate sector compared to the previous years.
The sector remains an attractive investment, attracting many people. If the next elections will be peaceful, then there is no cause for alarm for investors.
Prospective home buyers will continue to emerge.
One of the Big Four agenda of President Uhuru Kenyatta is the availability of affordable housing for all.
And much effort to achieve this by continued support to the industry as one of his legacies is needed.
With strong growth domestic product growth, peace, declining Covid-19 infection rates and government support, the real estate sector will continue to boom.
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