This archive report was first published on 27 September 2019.
Real Estate Investing in Kenya: Beyond the Basics ¶
Published on September 27, 2019, real estate investing in Kenya offers more than one way to make money. From investing in real estate investment trusts (REITs) to buying commercial property, there are numerous opportunities for entrepreneurs to succeed.
One way to invest in real estate is through REITs, which allow individuals to pool their resources and earn profits or income from real estate. REITs typically invest in income-producing properties such as office buildings, shopping malls, apartments, hotels, resorts, and warehouses.
Another way to succeed in real estate investing is by flipping houses. House flipping involves buying a house and selling it for a profit, often within a short period, ranging from a few months to a year. Most house flippers buy property off-plan or at a discount and sell it for a higher price.
Real estate entrepreneurs also make improvements to residential properties to increase their value. They acquire old, rugged homes and fix or update them to justify selling the property for more than what they paid for or spent upgrading it.
Many real estate entrepreneurs purchase residential property to rent to others, which becomes a profitable business over time. They can also purchase the property and wait for its value to increase before selling it, as property values generally increase over time.
Commercial real estate is not limited to office space and includes retail storefronts, industrial buildings, warehouses, hotels, land, and entertainment and sporting venues. Real estate entrepreneurs often invest in commercial real estate, developing portfolios of properties that provide lucrative rental income and appreciate over time.
Successful real estate entrepreneurs are clear about their goals, understand their market, and have mapped out an exit strategy. They also constantly seek untapped areas and capitalize on them.
