Wazua
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Real Estate in Kenya
Rank: Veteran Joined: 7/8/2008 Posts: 947
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Angelica _ann wrote:Fyatu wrote:wukan wrote:Superwoman910 wrote:Superprime1 wrote:What type/kind of an investment in real estate? Is it rental income-generating commercial or residential property/ies? Or are you intending to buy land and hold to sell in future? And which market segment are you interested in or focused on? BTW, buying Stanlib Fahari I-Reit is another way of investing in real estate....
I think rental (residential) is the best way to go. Cytonn has some pretty good looking properties that are also affordable (in Ridgeways and Ruaka). Just want to make sure it is the absolute best decision before investing with them
You have to forward thinking in real estate to make the right investment. If you look at the traffic projections for Nairobi 2030 it will not make sense to live far from CBD. Ruaka is a horribly planned settlement you won't like that neighborhood in 15-20 years. Check google maps if you doubt
And there lies the most important factor in real estate investments. As the platitude goes, real estate is about location, location, location. If i was to buy a plot in Ruaka today, i will build a Umoja-kayole-githurai-pipeline-mwiki-mathare north-roy sambu-style apartment because that what Ruaka is....an over-glorified slum. Unfortunately, that is the reality across the country.The government of kikuyus and other greedy tribes has left wanjiku(taxpayers) at the mercy of dumb greedy kikuyus (and other greedy tribes) landlords. We have wazuans here dreaming of squeezing 60 one-bedroom houses on 33 by 66 feet plots in residential flats of 6 floors. These are Houses without natural light(sunlight) which denies children of vitamin D leading to health complications such as iron-deficiency, pneumonia, tuberculosis, meningitis etc. To top it all, since all the greedy landlords(kikuyus and others) have planted their 30 by 60 apartments wall-to-wall, there are no playing fields and recreation areas for Kenyas future generation therefore, we read of stories of kids turning roy-sambu flyover and other risky places into a playing fields.Let me not even talk of how much rent these greedy ilk is raking from poor helpless and hapless wanjiku for such hujuma ya hali ya juu.
Only proper urban- planning and zoning will stop this madness and this require serious government policy. When Pope Francis visited Kangemi and saw human beings living like pigs in tin-shacks defecating on juala and hauling the contents on rooftops, he told Uhuru that Kenyan mabwenyenye greed will be our(Kenyan) undoing.Perhaps, this observation by the pope is what inspired Uhuru to build proper houses for wananchi, but as things stand, these affordable houses might never see light of day, reason being that ground breaking that was meant to be in May huko parkroad/Jericho/mbotela estate did not happen and now we are headed to July and what we see on tv is an overated PS of housing speaking kizungu mingi but hakuna kitu inaendelea...
Anyway, real estate is a good investment. But i recommend you build houses even you yourself can live in complete with thorough consideration of innocent Kenyan children, persons living with disabilities and the elderly. Hii mabo ya kujenga nyumba ya gorofa bila dirisha na ground floor ni ma wines and spirits tuwache jameni...ama namna gani jamma?
Green space ni responsibility ya developer ama Serikali??
The issue of slum like dwellings will continue until a middle class forms that can fight for it's rights. It is not the entrepreneurs or the capital holders duty to create green spaces, libraries, schools and clinics hizo zote ni kazi ya serikali.
Finally when you pay your mboch 9K and she is a day bug where do you expect her to leave. This rant is so myopic and pointing your fingers at "greedy Kikuyu or other tribe" landlords is nonsensical. Vote wisely!
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Rank: Member Joined: 1/30/2011 Posts: 207
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Dear Wazuans,
What about investing in places like Tatu City environment...? Where infrastructure and related policies are initiated by the private sector (developers) and not the national or county govts
At Tatu there exists various real estate investment opportunities - from apartments, stand alone plots, stand alone houses from various developers etc
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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tony stark wrote:Angelica _ann wrote:Fyatu wrote:wukan wrote:Superwoman910 wrote:Superprime1 wrote:What type/kind of an investment in real estate? Is it rental income-generating commercial or residential property/ies? Or are you intending to buy land and hold to sell in future? And which market segment are you interested in or focused on? BTW, buying Stanlib Fahari I-Reit is another way of investing in real estate....
I think rental (residential) is the best way to go. Cytonn has some pretty good looking properties that are also affordable (in Ridgeways and Ruaka). Just want to make sure it is the absolute best decision before investing with them
You have to forward thinking in real estate to make the right investment. If you look at the traffic projections for Nairobi 2030 it will not make sense to live far from CBD. Ruaka is a horribly planned settlement you won't like that neighborhood in 15-20 years. Check google maps if you doubt
And there lies the most important factor in real estate investments. As the platitude goes, real estate is about location, location, location. If i was to buy a plot in Ruaka today, i will build a Umoja-kayole-githurai-pipeline-mwiki-mathare north-roy sambu-style apartment because that what Ruaka is....an over-glorified slum. Unfortunately, that is the reality across the country.The government of kikuyus and other greedy tribes has left wanjiku(taxpayers) at the mercy of dumb greedy kikuyus (and other greedy tribes) landlords. We have wazuans here dreaming of squeezing 60 one-bedroom houses on 33 by 66 feet plots in residential flats of 6 floors. These are Houses without natural light(sunlight) which denies children of vitamin D leading to health complications such as iron-deficiency, pneumonia, tuberculosis, meningitis etc. To top it all, since all the greedy landlords(kikuyus and others) have planted their 30 by 60 apartments wall-to-wall, there are no playing fields and recreation areas for Kenyas future generation therefore, we read of stories of kids turning roy-sambu flyover and other risky places into a playing fields.Let me not even talk of how much rent these greedy ilk is raking from poor helpless and hapless wanjiku for such hujuma ya hali ya juu.
Only proper urban- planning and zoning will stop this madness and this require serious government policy. When Pope Francis visited Kangemi and saw human beings living like pigs in tin-shacks defecating on juala and hauling the contents on rooftops, he told Uhuru that Kenyan mabwenyenye greed will be our(Kenyan) undoing.Perhaps, this observation by the pope is what inspired Uhuru to build proper houses for wananchi, but as things stand, these affordable houses might never see light of day, reason being that ground breaking that was meant to be in May huko parkroad/Jericho/mbotela estate did not happen and now we are headed to July and what we see on tv is an overated PS of housing speaking kizungu mingi but hakuna kitu inaendelea...
Anyway, real estate is a good investment. But i recommend you build houses even you yourself can live in complete with thorough consideration of innocent Kenyan children, persons living with disabilities and the elderly. Hii mabo ya kujenga nyumba ya gorofa bila dirisha na ground floor ni ma wines and spirits tuwache jameni...ama namna gani jamma?
Green space ni responsibility ya developer ama Serikali??
The issue of slum like dwellings will continue until a middle class forms that can fight for it's rights. It is not the entrepreneurs or the capital holders duty to create green spaces, libraries, schools and clinics hizo zote ni kazi ya serikali.
Finally when you pay your mboch 9K and she is a day bug where do you expect her to leave. This rant is so myopic and pointing your fingers at "greedy Kikuyu or other tribe" landlords is nonsensical . Vote wisely!
Totally delusioned too. Just because someone got hottie and his fatty fatty can not dare go out jogging meeting a country man does not damned every sanely thinking well oriented and planned investor to preoccupy their mind with creating a football playground inside their 2/3/4 bdrm houses like every Tom dick and Harry need them.
Goggle definition for a slum and revert if u courageous to speak of ur poor throwing of words whose meaning make least sense to you and soaking you intorence of shear blankness to everybody.
Residential categorizations
High density
Medium density
And low density means different things.
Clean and healthy dwelling place is a right and legally protected and not debatable. If you doubt that complain and raise you case with public health office, nema and log your case in court. If the landlord won't comply, you may be kicked out but push on with your case, hire an occupational health safety officer and soldier on. Keep your neck safe and he will beg you for having breached your rights.
Aesthitics and convenience is a different legue altogether.
A well paying development doesn't have to be complacent (of minimum requirements).
,Behold, a sower went forth to sow;....
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Rank: Member Joined: 10/26/2008 Posts: 380
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The average cost of construction of an apartment with decent finishes is Kshs, 20,000 - 30,000 per square meter. 20K/sqm if you decide to build with foreman old school, 30K/sqm if you go with a contractor - top notch Mhindi contractor.
Buying a house for rent - the developer will sell to you the same house at 70k/sqm to 120k/sqm(e.g. cytonn - Ruaka project). If you are buying a house to then rent it out - the ROI will never make sense at all. It will always be in the 4-6% range.
However if your construction cost is within the 20k-30k/sqm range - the ROI will be 9-12%. It can even go as high as 20% in some rare cases. This will look to be low, when you compare with other forms, but players will confess that this is one of the best forms of investment ever!
Bottom line, the people who make money in real estate rentals are not the ones who buy an already built house. They are the ones who get their hands dirty - and own the mjengo.
Aim to be that person if you want to make money. Buy land in a good area and build.
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Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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Rank: Member Joined: 5/8/2008 Posts: 288
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Mkimwa wrote:The average cost of construction of an apartment with decent finishes is Kshs, 20,000 - 30,000 per square meter. 20K/sqm if you decide to build with foreman old school, 30K/sqm if you go with a contractor - top notch Mhindi contractor.
Buying a house for rent - the developer will sell to you the same house at 70k/sqm to 120k/sqm(e.g. cytonn - Ruaka project). If you are buying a house to then rent it out - the ROI will never make sense at all. It will always be in the 4-6% range.
However if your construction cost is within the 20k-30k/sqm range - the ROI will be 9-12%. It can even go as high as 20% in some rare cases. This will look to be low, when you compare with other forms, but players will confess that this is one of the best forms of investment ever!
Bottom line, the people who make money in real estate rentals are not the ones who buy an already built house. They are the ones who get their hands dirty - and own the mjengo.
Aim to be that person if you want to make money. Buy land in a good area and build.
I agree. Its better to buy in a good area and build. ROI of 20% is possible.
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Rank: Veteran Joined: 7/3/2007 Posts: 1,635
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Mkimwa wrote:The average cost of construction of an apartment with decent finishes is Kshs, 20,000 - 30,000 per square meter. 20K/sqm if you decide to build with foreman old school, 30K/sqm if you go with a contractor - top notch Mhindi contractor.
Buying a house for rent - the developer will sell to you the same house at 70k/sqm to 120k/sqm(e.g. cytonn - Ruaka project). If you are buying a house to then rent it out - the ROI will never make sense at all. It will always be in the 4-6% range.
However if your construction cost is within the 20k-30k/sqm range - the ROI will be 9-12%. It can even go as high as 20% in some rare cases. This will look to be low, when you compare with other forms, but players will confess that this is one of the best forms of investment ever!
Bottom line, the people who make money in real estate rentals are not the ones who buy an already built house. They are the ones who get their hands dirty - and own the mjengo.
Aim to be that person if you want to make money. Buy land in a good area and build.
Good points. On the other hand, if you invest for capital gains then even buying can make sense.
But then, on yet another hand, Kenyans with their peculiar habits never want to sell property, so the gains remain largely unrealized.
Me I got into real estate to buy peace of mind, I hated my landlord, and stayed when I realized I could make money.
"The opposite of a correct statement is a false statement. But the opposite of a profound truth may well be another profound truth." (Niels Bohr)
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Rank: Veteran Joined: 8/28/2015 Posts: 1,247
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Wakanyugi wrote:Mkimwa wrote:The average cost of construction of an apartment with decent finishes is Kshs, 20,000 - 30,000 per square meter. 20K/sqm if you decide to build with foreman old school, 30K/sqm if you go with a contractor - top notch Mhindi contractor.
Buying a house for rent - the developer will sell to you the same house at 70k/sqm to 120k/sqm(e.g. cytonn - Ruaka project). If you are buying a house to then rent it out - the ROI will never make sense at all. It will always be in the 4-6% range.
However if your construction cost is within the 20k-30k/sqm range - the ROI will be 9-12%. It can even go as high as 20% in some rare cases. This will look to be low, when you compare with other forms, but players will confess that this is one of the best forms of investment ever!
Bottom line, the people who make money in real estate rentals are not the ones who buy an already built house. They are the ones who get their hands dirty - and own the mjengo.
Aim to be that person if you want to make money. Buy land in a good area and build.
Good points. On the other hand, if you invest for capital gains then even buying can make sense.
But then, on yet another hand, Kenyans with their peculiar habits never want to sell property, so the gains remain largely unrealized.
Me I got into real estate to buy peace of mind, I hated my landlord, and stayed when I realized I could make money.
Buying high to sell higher to a greater fool. You can not buy/plant wead and expect to sell/harvest wheat.  ,Behold, a sower went forth to sow;....
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Rank: Hello Joined: 7/1/2018 Posts: 9
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hey folks can 1 million ksh build me a three bedroom house with a small kitchen inside,toilet and bathroom (combined).the roofing is of corrugated sheets , and the stones are artificially manufactured (what are they called?)the house should also have electricity and running water
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Rank: Veteran Joined: 1/20/2011 Posts: 1,822 Location: Nakuru
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muandiwambeu wrote:tony stark wrote:Angelica _ann wrote:Fyatu wrote:wukan wrote:Superwoman910 wrote:Superprime1 wrote:What type/kind of an investment in real estate? Is it rental income-generating commercial or residential property/ies? Or are you intending to buy land and hold to sell in future? And which market segment are you interested in or focused on? BTW, buying Stanlib Fahari I-Reit is another way of investing in real estate....
I think rental (residential) is the best way to go. Cytonn has some pretty good looking properties that are also affordable (in Ridgeways and Ruaka). Just want to make sure it is the absolute best decision before investing with them
You have to forward thinking in real estate to make the right investment. If you look at the traffic projections for Nairobi 2030 it will not make sense to live far from CBD. Ruaka is a horribly planned settlement you won't like that neighborhood in 15-20 years. Check google maps if you doubt
And there lies the most important factor in real estate investments. As the platitude goes, real estate is about location, location, location. If i was to buy a plot in Ruaka today, i will build a Umoja-kayole-githurai-pipeline-mwiki-mathare north-roy sambu-style apartment because that what Ruaka is....an over-glorified slum. Unfortunately, that is the reality across the country.The government of kikuyus and other greedy tribes has left wanjiku(taxpayers) at the mercy of dumb greedy kikuyus (and other greedy tribes) landlords. We have wazuans here dreaming of squeezing 60 one-bedroom houses on 33 by 66 feet plots in residential flats of 6 floors. These are Houses without natural light(sunlight) which denies children of vitamin D leading to health complications such as iron-deficiency, pneumonia, tuberculosis, meningitis etc. To top it all, since all the greedy landlords(kikuyus and others) have planted their 30 by 60 apartments wall-to-wall, there are no playing fields and recreation areas for Kenyas future generation therefore, we read of stories of kids turning roy-sambu flyover and other risky places into a playing fields.Let me not even talk of how much rent these greedy ilk is raking from poor helpless and hapless wanjiku for such hujuma ya hali ya juu.
Only proper urban- planning and zoning will stop this madness and this require serious government policy. When Pope Francis visited Kangemi and saw human beings living like pigs in tin-shacks defecating on juala and hauling the contents on rooftops, he told Uhuru that Kenyan mabwenyenye greed will be our(Kenyan) undoing.Perhaps, this observation by the pope is what inspired Uhuru to build proper houses for wananchi, but as things stand, these affordable houses might never see light of day, reason being that ground breaking that was meant to be in May huko parkroad/Jericho/mbotela estate did not happen and now we are headed to July and what we see on tv is an overated PS of housing speaking kizungu mingi but hakuna kitu inaendelea...
Anyway, real estate is a good investment. But i recommend you build houses even you yourself can live in complete with thorough consideration of innocent Kenyan children, persons living with disabilities and the elderly. Hii mabo ya kujenga nyumba ya gorofa bila dirisha na ground floor ni ma wines and spirits tuwache jameni...ama namna gani jamma?
Green space ni responsibility ya developer ama Serikali??
The issue of slum like dwellings will continue until a middle class forms that can fight for it's rights. It is not the entrepreneurs or the capital holders duty to create green spaces, libraries, schools and clinics hizo zote ni kazi ya serikali.
Finally when you pay your mboch 9K and she is a day bug where do you expect her to leave. This rant is so myopic and pointing your fingers at "greedy Kikuyu or other tribe" landlords is nonsensical . Vote wisely!
Totally delusioned too. Just because someone got hottie and his fatty fatty can not dare go out jogging meeting a country man does not damned every sanely thinking well oriented and planned investor to preoccupy their mind with creating a football playground inside their 2/3/4 bdrm houses like every Tom dick and Harry need them.
Goggle definition for a slum and revert if u courageous to speak of ur poor throwing of words whose meaning make least sense to you and soaking you intorence of shear blankness to everybody.
Residential categorizations
High density
Medium density
And low density means different things.
Clean and healthy dwelling place is a right and legally protected and not debatable. If you doubt that complain and raise you case with public health office, nema and log your case in court. If the landlord won't comply, you may be kicked out but push on with your case, hire an occupational health safety officer and soldier on. Keep your neck safe and he will beg you for having breached your rights.
Aesthitics and convenience is a different legue altogether.
A well paying development doesn't have to be complacent (of minimum requirements).
Thanks @tony stark and @Muandi for your compliments. However, i still maintain that if at all i was to build residentials, i will try at the very minimum build decent single rooms with enough lighting and fresh air sio kama zile za pipeline estate ama mathare North ambazo ziko na giza totoro hata saa sita mchana and the walls are always wet and dump...
Tamaa iliua fisi. Dumb money becomes dumb only when it listens to smart money
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