This archive report was first published on 11 September 2019.
Kenya's real estate market is facing significant challenges, with the industry experiencing a slowdown due to a weakening economy.
According to James Juma Absaloms, Project Manager at Apollo Associates Limited, speculators are entering the market without testing fundamental principles, while individuals with ill-gotten wealth are seeking to launder their cash through real estate investments.
Moreover, the lack of reliable data from county planning departments is exacerbating the situation, as plans suited for one area are being extrapolated and applied to another.
As a result, areas such as Kilimani and Kileleshwa are experiencing oversupply, while other areas like Karen and Muthaiga are facing undersupply due to unrealistic rental charges and the use of inappropriate models.
Figures from the Kenya National Bureau of Statistics (KNBS) show that the real estate sector experienced a reduction in growth to 4.2% in the first quarter of 2019, compared to a growth of 5.3% in the past six months of 2018.
Experts agree that the country's property sector is slowly crumbling as the general economy hits new lows, with investor flight to more attractive destinations further exacerbating the issue.
Published on September 11, 2019.
