Property markets defy headwinds as diaspora inflows rise

The property markets are currently defying headwinds as diaspora inflows rise, making land one of the top rewarding asset classes for investors, especially with the U.S. dollar strengthening against major world currencies. Real estate prices are experiencing a mild correction, attracting big investors to land assets. Martin Githinji, the CEO at AMG Realtors, a company making strides in the U.S. property scene, joined CNBC Africa to discuss the current state of the markets and how African investors are capitalizing on the opportunities available. Githinji highlighted that the property market in Kenya has been slow in the first half of the year but is now showing signs of picking up in the second half. He noted that stability is increasing in the market, although the upcoming U.S. November elections are causing potential investors to adopt a wait-and-see approach. Despite the uncertainty, AMG Realtors, a Kenyan-based company, is taking a keen interest in the U.S. markets based on feedback from their diaspora customers. Githinji mentioned that 80% of their clientele over the last 12 years are from the diaspora, with 70% of them residing in the USA. The customers expressed the desire for investment opportunities in the U.S. to secure a future for their families. In response to the demand and the favorable investment climate in the U.S., AMG Realtors decided to venture into the American property market. Githinji emphasized that owning land in the USA is unrestricted, making it an attractive option for foreign investors. The company's investment in Texas, particularly in the Lone Star State near the Tesla Gigafactory, has been met with significant interest. The prime 60-acre land offering in Texas has already sold out its first phase, with plans underway for Phase 2. The high uptake of these properties reflects the growing appetite among Kenyans for U.S. real estate investments. Besides the potential for property appreciation, investors also benefit from favorable exchange rates between the U.S. dollar and the Kenyan shilling. Githinji highlighted the importance of considering both the property's location and the currency exchange rate when assessing the investment's value. The thriving neighborhood near the Dallas Fort Worth Airport offers opportunities for rental income through platforms like Airbnb, further enhancing the property's profitability for investors.