@heri, land appreciates at 20% annually and above. Developed land appreciates much slower, maybe around 5 to 8% annually.
The rate of appreciation will depend if you have bought underpriced or over priced. If you bought overpriced, the property might even depreciate in value over the years.
In Kenya, most value is gotten through the comparison method. There are other methods such as the architectural method whereby you check on the value of construction vis a vis value of land. The land should be around 20% of total construction cost.
I use it for my real estate investments and it works well. For example, the southern bypass hotel whereby assuming the building can accommodate kes 40m of profitable construction, the land should therefore cost 40m x 20%=kes 8m. The purchase price should not hit 8m for the land.
http://www.a4architect.c...ects-vs-stock-exchange/
By mid this year, land price will be over 8m. By Mid next year, the price will double, to be like as seen along the Eastern Bypass.
This is the method i use to gauge if land price is over valued. If land is over valued, this means that the return on investment will not be possible. The international benchmark for unviable return on investment is 15 years. Land that can return on less than 15 years is viable. The hotel investment, for example, has a return on investment of 5 years on average.
Check land price appreciation analysis for cbd lands here
http://www.a4architect.c...nd-prices-appreciation/
The land price in CBD is still undervalued at the current kes 300m per acre till it reaches 2billion as the economy grows.
As Iron Sharpens Iron, So one Man Sharpens Another.