Kenya’s real estate sector gains from govt infrastructure investment
Investors in Kenya’s real estate industry are bullish for better prospects in 2025 majorly driven by rising demand for land in satellite towns and government driven special economic zones developments. CNBC Africa’s Aby Agina spoke to Winnie Maina, Co-Founder & Director, Iconprime Properties to get a sense of what the market is swinging towards as the property boom surges on.
Wed, 22 Jan 2025 16:16:48 GMT
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AI Generated Summary
- Investors optimistic about better prospects in 2025 driven by rising demand for land in satellite towns and special economic zones developments
- Land prices consistently rising, unaffected by housing price stagnation, driven by factors like urbanization and demand for gated communities
- Government support, infrastructure development, and affordable housing initiatives shaping the future of the real estate industry in Kenya
Kenya's real estate sector is witnessing a surge in growth and demand, with investors optimistic about better prospects in 2025. The industry is being primarily driven by the rising demand for land in satellite towns and government-led special economic zones developments. Winnie Maina, Co-Founder & Director of Iconprime Properties, shared insights on the current market trends and what the future holds for the property market in Kenya. The population increase, coupled with the scarcity of housing, has led to remarkable transformations in the real estate sector. Maina highlighted the significant growth in both commercial and residential properties, particularly in the metropolitan area within a radius of 50 to 60 kilometers from Nairobi's CBD.
Land prices have been on the rise consistently, unaffected by the stagnation seen in housing prices. Factors such as urbanization and the growing demand for gated communities have contributed to the increase in land prices. Kenyans are increasingly preferring gated communities for the security, sense of community, green spaces, and access to amenities like schools, churches, and shopping malls. Iconprime Properties is aligning with client demands by developing fully gated projects to cater to these preferences.
Affordable housing initiatives and partnerships with reputable financial institutions have allowed companies like Iconprime Properties to offer properties starting as low as 500,000 shillings in sought-after areas. The focus on affordability aligns with the government's agenda on affordable housing, ensuring that more Kenyans have access to decent housing. Infrastructure development, supported by the government, has also played a significant role in driving the real estate market's growth. Improved road networks in areas like Juja Farm and Kangundo Road have reduced travel times, making these regions more attractive for settlement.
Moreover, government-led initiatives like special economic zones are further fueling the real estate sector's expansion. The creation of special economic zones in areas like Dogokundo Bypass has presented investment opportunities for companies like Iconprime Properties. By targeting both local and diaspora markets, the company aims to provide secure and accessible investment options to a wider range of investors.
In tapping into the diaspora market, Iconprime Properties has streamlined its sales processes to instill confidence in investors. They exclusively sell properties owned by the company and ensure seamless delivery of property titles to investors, including utilizing partnerships with logistics companies like DHL for international clients. As the real estate industry in Kenya continues to evolve, government support, infrastructure development, and strategic investments are poised to shape the industry's future, offering lucrative opportunities for both domestic and international investors.