Wealthy Kenyans are increasingly buying rooms or villas in their favourite hotels to earn money and ensure they are readily available when holidaying in Dubai, London, Coast, Naivasha or Nanyuki.
Yet another foreigner developer has pitched tent in Nairobi to woo Kenya’s rich to buy fully-furnished hotel rooms in Dubai prized at Sh20 million to Sh40 million.
UK investment firm, The First Group, joins Dubai-based Danube Properties, Emaar Properties, among others that have recently been courting property tycoons to buy holiday villas, apartments, bungalows and penthouses in London, India, Abu Dhabi, Doha, and South Africa.
Without physical offices, most of the foreign-based property firms make sales pitches in high-end hotels and golf clubs in Nairobi, Mombasa, Kisumu, Nakuru and Eldoret.
For instance, The First Group, organises personalised investment meetings with potential wealthy buyers in hotels.
“We recently met investors in Kisumu at Acacia Hotel. Soon we will be rolling out the investment idea countrywide,” said Kelvin Kibugu, The First Group sales executive in Nairobi.
Maryama Omar Abdullahi, The First Group property wealth consultant said that their presence in Kenya has yielded “immense success” and they are looking forward to selling more units and establish a permanent presence in Kenya.
In these hotel room deals, owners get title deeds to their properties and a hotel operator manages them with rental income submitted to the buyer monthly. The owners can also sell and transfer the hotel rooms to family members.
Dubai property sellers argue there are few investments being made in mid-scale and economy hotels which are attractive to the growing middle-class travellers. Owing to its many adventure activities and shopping experience, most tourists spend more nights in Dubai and visit from many countries.
“Dubai attracts millions of visitors. It is one of the world’s fastest-growing business and tourism hubs offering great prospects for investors. Hotel investment is hassle-free, fully managed and serviced,’’ Ms Abdullahi said.