This archive report was first published on 24 December 2019.
Kenya's housing shortage of two million units by 2030 is a pressing issue that requires a solution. According to a recent study by Sagaci Research and McKinsey, the country needs to put up about 200,000 houses each year to meet this demand.
Off-plan arrangements offer a comfortable entry point to home ownership, allowing prospective homeowners to pay a small percentage of the overall property cost and clear the balance in flexible instalments as their investment value grows.
However, the off-plan housing market in Kenya is plagued by missed completion timelines and a lack of information on final products, eroding customer trust and posing significant risks to the sector.
As one of the key pillars of the government's 'Big Four Agenda', the delivery of 500,000 affordable housing units will be interrupted due to low private sector support and output, with the sector only managing 50,000 units annually.
Players in the off-plan housing market must change their focus and strategy in customer service management and culture to address these issues and provide a better experience for prospective homeowners.
By involving prospective buyers in the entire construction process and engaging with them during crises and signing off of projects, developers can build trust and provide a more satisfactory experience.
As the recent wave of retrenchments has significantly eroded the purchasing power of most Kenyans, off-plan arrangements offer a viable option for prospective buyers to consider, allowing them to lock in price and avoid market trends.
