This archive report was first published on 19 November 2019.
With the real estate market in Nairobi and its environs experiencing a rapid rise in housing prices, savvy investors are turning to off-plan buying as a way to secure properties at a lower cost.
Off-plan buying involves purchasing a property before its construction is complete, often at a discounted price. This can be a lucrative option for investors who are willing to take on the risk of purchasing a property that has not yet been built.
According to Mr. Andrew Muhiu, a real estate specialist and director of Banda Homes Limited, off-plan buying can be a better option for investors who are able to time the market correctly.
"In a rapidly rising housing market, buying off-plan enables investors and homebuyers to buy a property at a lower price than when they wait for the construction of their chosen property to commence," Mr. Muhiu explained.
One of the benefits of off-plan buying is that it allows investors to secure a property with a specific location or set of features, which may be in short supply once construction starts.
However, off-plan buying also comes with its own set of risks, including the possibility that the property may not be completed on time or that the market may decline in value.
As Mr. Muhiu noted, "Choosing the correct project that has the possibility of higher gains at the right time is a major step with respect to off-plan projects."
Ultimately, off-plan buying can be a lucrative option for investors who are willing to take on the risk and are able to time the market correctly.
Published on November 19, 2019.
