Is the demand more than supply? If demand is measured by purchasing power, not just the need for homes, the supply and demand figures are fairly balanced. Note most of purchases for homes, land and vehicles are financed by loans from the banks, and as such, the rise in interest rates will discourage borrowing, or at least the amount the bank is willing to lend. This is because the higher instalments will reduce what one can qualify for while increasing the risk of default for those who have existing loans. The ability to buy will reduce, and consequently reduce real demand on real estate. In the short term at the current interest rates, i expect the prices to stabalize or slightly stagnate. It is for the same reasons that the demand for personal cars will continue to go down as it has always been fuelled by personal loans. Despite the depreciation of the shilling, and contrary to expectations, it will be a buyers market for these cars as result of erosion of disposable income and drying up of personal loans.
Democracy does not belong to the dead