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Market News

Real estate sales grow on better access to credit

A housing project in Nairobi.
A housing project in Nairobi. Improved infrastructure has supported new sales of upcoming houses in Nairobi. FILE PHOTO | NMG 

Realtors have reported increased sales of standalone homes within Nairobi and its suburbs, largely driven by improved access to credit and lower property prices.

A survey of several real estate sellers in the city has revealed that January property sales were much higher than the average monthly transactions reported in 2019.

Realtor HassConsult said high-end properties in Westlands as well as the Gigiri diplomatic blue zone performed well last month, with several off plan deals.

“January has witnessed three times more activity than any other month last year,” said HassConsult’s head of development consulting and research Sakina Hassanali. She said Kenyans appear to be enjoying better access to capital as many property buyers and tenant had paid all their instalments that lagged behind last year. Mr Patrick Muchoki of Mahiga Homes said they have seen higher demand in developments in Ruiru and Kitengela, mostly from investor-buyers from the diaspora market.

“There is hope as Kenya’s population is rising and new well-paying jobs are fast emerging within the digital space. 2020 is shaping up to be different from 2019 as banks are now willing to lend to would-be homeowners,” he said.

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Enkavilla Properties general manager Lilian Juma said good infrastructure has supported new sales of upcoming residential development in areas such as Kangundo Road while Kitengela serviced plots sold under a buy and build basis have witnessed heightened interest among young couples.

Releasing their fourth quarter housing property index, Kenya Bankers Association reported a seven percentage points jump in maisonette and bungalow sales within Nairobi and its suburbs.

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