Shanzu Beach Resort’s entry into the high-end coastal property market has gained traction with the near completion of its project in Mombasa.
The real estate company said that the first phase of its Shaza project would be completed by September.
“It has been financed by debt, equity and from some of the buyers. This is the biggest project that we have ever done,” said Shanzu Beach Resort executive director Mike Karanja at a briefing on the project.
The project directors indicated that the scheme would cost more than Sh1 billion. Equity Bank is the financing partner while MMC Africa is the legal adviser.
The project, which began two years ago, consists of 76 units that are priced at between Sh28 million for a two-bedroom apartment and Sh64 million for a four-bedroom duplex.
Mr Karanja said that half of the 46 units in the first phase had been bought in cash by business and corporate executives.
Promoters said that there was still demand for high-end property in the coastal region. “Beachfront properties are more expensive than inland properties anywhere in the world. Kenya is an exception but that is rapidly correcting on account of growing demand,” said the developers.
The Shaza is located on a five-acre beachfront property.
The Hass Consult annual report 2013 found that while prices in most high-end suburbs had started to cool off those in suburbs such as Nyali in Mombasa had increased by double digit figures.
“Nine of 42 suburbs experienced falling house prices while prices rose the most rapidly in South C, Nyali, South B and Thika,” said the property firm.
Data from Hass Consult showed that the average price for a house in Nyali increased by 14 per cent to Sh19.4 million in 2013 up from Sh17 million a year before.
The average rent for a house in the same coastal suburb increased by 20 per cent to Sh73,800 per month from Sh61,400 over the same period.