Kenya’s real estate is poised for growth with a projected 6.0% GDP increase in 2024, driven by services and household consumption, among other factors.
Written by Alex Etidit, SEO Specialist.
Now more than ever, Kenyans are actively engaging in property acquisitions, whether it be land, houses, or apartments, driven by a variety of motivations. For some, it represents a lucrative investment opportunity, while for others, it signifies the realisation of their aspirations, such as settling into their dream retirement homes.
However, amidst the surge in property transactions lies the sobering reality of this year’s challenges, particularly the devastating floods. Countless individuals incurred significant losses as their investments, lands, and houses succumbed to the floods, leading to an evident erosion of confidence within the property market. This could potentially reshape the dynamics of property purchasing among Kenyans.
Nevertheless, amidst adversity, a silver lining emerges. Despite the setbacks, 2024 presents itself as an opportune time for property acquisitions. The aftermath of natural disasters often catalyses a period of reconstruction, accompanied by a decline in property prices. Savvy investors recognise this as an opportune time to capitalise on the reduced valuations and emerging development prospects, thereby maximising their returns on investment.
In line with this optimism, a report by Statista forecasts promising growth for Kenya’s Residential Real Estate market. It is anticipated to reach a value of Ksh US$0.62 trillion by 2024, signalling a robust trajectory for the country’s real estate sector. Furthermore, the market is projected to maintain a steady annual growth rate of 3.81% from 2024 to 2028, culminating in a market volume of Ksh US$0.72 trillion by the end of 2028.
Kenya’s economy is on an upward trajectory. According to a report by CNBC, Kenya’s GDP is projected to grow by 6.0 per cent in 2024, fuelled by services and household consumption among other key sectors and factors leading to this growth. The growth of any economy is always an indication of a growth in various sectors in the country. As such, with such a prediction, it is highly likely that the real estate sector in Kenya will experience a boost. What does this mean for property? A boost would mean an increase in demand, causing an increase in property value.
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In practical terms, this means that investors and homeowners alike stand to benefit from an environment of increasing property demand and appreciation. For investors, it presents an opportune moment to capitalise on the proliferation of market conditions and maximise returns on investment. Similarly, homeowners may witness appreciation in the value of their properties, providing a tangible indicator of wealth accumulation and financial security.
In essence, the anticipated growth in Kenya’s economy is good news for the real estate market because it goes to show that more people will want to buy property, and as such, increasing the value of the property.
The government has placed significant emphasis on the issue of affordable housing, with the president demonstrating strong commitment to its success despite opposition. The implementation of affordable housing initiatives holds the potential to significantly impact property prices by providing more affordable options to buyers. This increased availability of affordable housing may compel property sellers to adjust their prices in order to remain competitive and attract buyers. With these initiatives already underway, purchasing property in 2024 stands as an advantageous decision.
In recent years, Kenya has seen a lot of new big projects popping up everywhere. These projects are getting a lot of attention. Many developers are selling plots of land as part of bigger communities, while others are creating their own neighbourhoods. Examples of these big projects include Tatu City in Ruiru, Tilisi Developments in Limuru, Eden Ville in Kiambu, and Greenpark in Athi River,Vipingo in Kilifi among others. This means there are now many options for Kenyans looking to buy property, which is why it’s a great time to do so.
More and more Kenyans are looking for places to live that are good to raise families in and have access to great amenities. These planned projects tick all the boxes, providing everything from schools and hospitals to parks and shopping centres.
In essence, the proliferation of planned developments represents a transformative shift in Kenya’s real estate landscape, offering buyers exceptional choice, convenience, and lifestyle opportunities. Against this backdrop, the decision to purchase property in 2024 is particularly compelling, as buyers stand to benefit from a diverse array of options that align with their preferences and priorities for family-friendly living.
In conclusion, Kenya’s real estate sector is undergoing a remarkable transformation fuelled by economic growth, government initiatives, and planned developments. Despite facing challenges such as natural disasters, the market continues to show resilience, presenting opportunities for both investors and homeowners. With projected economic growth and a focus on affordable housing, the real estate market is set for heightened demand and value appreciation. The array of planned developments further enriches buyer options, making 2024 an ideal time to invest in property acquisition.
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