This archive report was first published on 5 July 2019.
On July 5, 2019, Collins Omulo reported on the debate surrounding investing in properties upcountry.
Simon Ng'ang'a, managing director of Granite Capital Kenya, a real estate agent, believes that the decision to build a home or invest in a rural property depends on one's disposable income.
He notes that most homes in rural areas are built due to societal expectations rather than daily use, making the value more emotional and personal than economical.
Ng'ang'a suggests that investing in rural properties may not be the best option if one is renting in the city, as it may not provide a significant return on investment.
However, he points out that return on investment (ROI) for rural properties can grow over time as the area becomes more modernized.
For instance, the ROI for properties in Maai Mahiu is expected to be high due to the government's infrastructure and development plans for the area.
On the other hand, Dennis Kyellenge, a property consultant with IFL Consult, disagrees and believes that investing upcountry is a good opportunity, especially in areas near existing institutions and urban centers.
Kyellenge suggests that investing in counties near their capitals is a good option, as opportunities are emerging and the area is expected to become more developed in the future.
He also notes that the property boom in cities and big towns has affected return on investment, with new properties coming up and using cheaper building technologies, making it difficult for older and more expensive properties to compete.
