Wazua
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Insightful take on Nairobi Real Estate
Rank: Veteran Joined: 1/20/2011 Posts: 1,820 Location: Nakuru
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wukan wrote:Hadithi hadithi hadithi njoo  Quote:he groundbreaking ceremony for 500,000 affordable houses by the government will be held on December 11 at Parklands, Nairobi. Housing Principal Secretary Charles Mwaura told a parliamentary committee the houses, which will be built in the next four years, will cost Sh1.3 trillion and are aimed at ensuring middle-income households have access to decent and affordable dwellings. Mr Mwaura told the National Assembly Transport, Public Works and Housing Committee that there will be three categories of houses that will be available to Kenyans depending on the level of income: social, low-cost and mortgage gap. https://www.nation.co.ke...74962-e5ksw2/index.html
hewa moto....ala hot airs Dumb money becomes dumb only when it listens to smart money
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Rank: Veteran Joined: 11/13/2015 Posts: 1,590
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Love what Jozi is doing to claw back its CBD.  If only our PR nairobi governor can borrow some ideas. http://www.engineeringne...-2019-03-29/rep_id:4136
Quote:Located at the centre of banking group Absa’s campus in downtown Johannesburg, Absa Towers Main stands in stark contrast to the rest of the complex. Currently stripped out and vacant, the 30-storey building is visually jarring when juxtaposed against the bank’s four contemporary buildings with their modern façades and bearing its newly redesigned logo.
The building remains an iconic city landmark, however, and its redevelopment represents a powerful manifestation of ongoing efforts to claw back the Johannesburg central business district (CBD) from the socially and economically debilitating effects of neglect, grime and crime.
Likewise the redevelopment, being undertaken by Divercity Urban Property Fund, represents not only a new lease of life for the building itself but also a significant repurposing of the property into a unique mixed-use facility.
Absa Group corporate real estate solutions head Wendy Cuthbert tells Engineering News that the initial idea, when the company vacated the building in 2014, was to redevelop but maintain it as an office complex. Quote:Divercity focuses on inner-city precinct development that combines commercial buildings with affordable residential space to create inclusive and diverse neighbourhoods.
In addition to the ten floors of office space, Absa Towers Main will also include 520 affordably priced residential rental apartments, a floor of coffee shops, restaurants and recreational areas, retail, childcare facilities, a public park and integrated public transport facilities. Quote:Absa employees will enjoy first preference on the rental apartments, which is in line with Divercity’s objective of developing functioning neighbourhoods that respond to the needs of people working in the inner city, while allowing for the convenience of living, working and playing in the inner city, Mogashoa adds.
“Creating affordable rental accommodation in a mixed-use precinct enables wage-earning employees to live close to work, which is extremely rare by global standards, and especially so in South Africa.” Quote:Meanwhile, Divercity, as part of the project, is advocating for pedestrianisation of parts of the inner city.
As part of a wider neighbourhood development initiative, a pedestrian- friendly walkway with street furniture, lighting and art will be created, stretching from Absa Towers Main to the nearby Maboneng precinct. This urban intervention prioritises pedestrians and people of the local community above vehicular traffic.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,590
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Beautiful insight on the Qwetu parklands residences. Ma braza @mugundaman come see this how modern studio look like from 22min https://www.youtube.com/watch?v=vMUbQkR0eE4
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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Interesting. KES 32,000 rent by a student
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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obiero wrote:Interesting. KES 32,000 rent by a student The facilities are quite good. Parents may foot the bill for some of the students. Qwetu should look at a REIT at some point. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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VituVingiSana wrote:obiero wrote:Interesting. KES 32,000 rent by a student The facilities are quite good. Parents may foot the bill for some of the students. Qwetu should look at a REIT at some point. Indeed, they have invested quite a bit
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Member Joined: 11/15/2010 Posts: 454 Location: Nairobi
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obiero wrote:VituVingiSana wrote:obiero wrote:Interesting. KES 32,000 rent by a student The facilities are quite good. Parents may foot the bill for some of the students. Qwetu should look at a REIT at some point. Indeed, they have invested quite a bit Now that is what we call market disruption, students living in a 5 start like environment. Qwetu wako sawa. ....He who began a good work in you will carry it on to completion..
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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Wow this series is dustbowl heavy!  Wukan, the mystery is how you missed the value propositions of beautiful Savannah Park which is a mere few metres from Rongai SGR station and landed on Qwetu  which is struggling with less than 20% occupancy rates! I am not denying that Qwetu is a good idea, I am just questioning whether such ideas have longevity. For example, if I started a capsule hotel on Tom Mboya street, like those in Tokyo, it might catch on as a fad for a few days because Kenyans are a curious lot by nature, but 3 years down you will hear it has closed down when the fad element fizzles out. But a 1/4 bought in Savannah Park today will be the same quarter with improvements (Maisonette etc) 40 years down the line , always growing in value and easy to re-sell if and when one decides to because it is a standard rather than a niche product. Speaking of Savannah, hebu let me run to grab me a plot there before they run out!!!
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Rank: Veteran Joined: 11/13/2015 Posts: 1,590
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obiero wrote:Interesting. KES 32,000 rent by a student With all the V8s packed in this town worry not about the price. It's an opportunity for your kids to build networks for life, mixing with students from various campuses and nationalities.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,590
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MugundaMan wrote:Wow this series is dustbowl heavy! Wukan, the mystery is how you missed the value propositions of beautiful Savannah Park which is a mere few metres from Rongai SGR station and landed on Qwetu which is struggling with less than 20% occupancy rates! I am not denying that Qwetu is a good idea, I am just questioning whether such ideas have longevity. For example, if I started a capsule hotel on Tom Mboya street, like those in Tokyo, it might catch on as a fad for a few days because Kenyans are a curious lot by nature, but 3 years down you will hear it has closed down when the fad element fizzles out. But a 1/4 bought in Savannah Park today will be the same quarter with improvements (Maisonette etc) 40 years down the line , always growing in value and easy to re-sell if and when one decides to because it is a standard rather than a niche product. Speaking of Savannah, hebu let me run to grab me a plot there before they run out!!! I didn't see the value proposition. Building maisonettes is so 1980's. I'm re-modelling a maisonette around this hood to cater for these millenials. Instead of giving a single family to rent the whole house just rent out the rooms. Very high ROI like those stalls in CBD. Qwetu only opened this facility in the last month so the occupancy looks good to me given that they usually don't advertise. Most of the student said they got to know the place through word of mouth and social media. Savannah is okay for those looking for family homes. I'm more interested in the next generation of renters. Someone has to pay for my vacations.
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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wukan wrote:MugundaMan wrote:Wow this series is dustbowl heavy! Wukan, the mystery is how you missed the value propositions of beautiful Savannah Park which is a mere few metres from Rongai SGR station and landed on Qwetu which is struggling with less than 20% occupancy rates! I am not denying that Qwetu is a good idea, I am just questioning whether such ideas have longevity. For example, if I started a capsule hotel on Tom Mboya street, like those in Tokyo, it might catch on as a fad for a few days because Kenyans are a curious lot by nature, but 3 years down you will hear it has closed down when the fad element fizzles out. But a 1/4 bought in Savannah Park today will be the same quarter with improvements (Maisonette etc) 40 years down the line , always growing in value and easy to re-sell if and when one decides to because it is a standard rather than a niche product. Speaking of Savannah, hebu let me run to grab me a plot there before they run out!!! I didn't see the value proposition. Building maisonettes is so 1980's. I'm re-modelling a maisonette around this hood to cater for these millenials. Instead of giving a single family to rent the whole house just rent out the rooms. Very high ROI like those stalls in CBD. Qwetu only opened this facility in the last month so the occupancy looks good to me given that they usually don't advertise. Most of the student said they got to know the place through word of mouth and social media. Savannah is okay for those looking for family homes. I'm more interested in the next generation of renters. Someone has to pay for my vacations. Millenials will disappoint you brother. As soon as Qwetu fad fades they will move to capsule hotels then hostels then back to campus dorms then age out of their fads, settle down, get married and buy a bungalow Mugundaman built in DC. Good luck struggling for rents from this lot. Turnover will be extremely high and they have spent all their money on clothes, whiskey and parties so are mostly broke. It's like saying you will open up a gourmet restaurant to cater to sufferers. Such fads don't last. And not to mention they will trash your building big time. And once you split your maisonette to a rooming house you cannot reverse things at reasonable cost. Si that's what's happened with all those dingy hostels in Ngara?
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Rank: Member Joined: 11/18/2009 Posts: 175
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ten years down the line has the bubble burst yet? Some you win some you lose
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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Mtublack wrote:ten years down the line has the bubble burst yet? 50 years down the line this same question will still be asked. I have said it before. Nairobi today is like Hong Kong in 1964. Pipo cried cried cried that surely they were in a bubble yet to this day there is no credible bubble in sight. Let me tell you a secret. The best thing that ever happened to Kenya is ridiculously high mortgage interest rates and less than 50,000 mortgages since independence. This has forced homeowners to pay cash or buy and build through jasho. Such pipo are not easy to topple over with silly things like FED or CBK adjusting interest rates and causing financial crises. The only way to remove a person who owns their own home from it is to come with an army and bulldozers and cococt some lies against them, which is hard to do in a country where the rule of law more or less functions. This is why the banksters said Greece must be torn down. Wagiriki all owned their homes free and clear so this was a threat to the banksters who decided imploding the whole economy was worth it in order to bring these independent people into subservience yaani washike adambu.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,590
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Mtublack wrote:ten years down the line has the bubble burst yet? From the Hass property index- The index shows a property price fall of -1.0% in the last month, fall of -3.0% in the last quarter and a -3.2% fall in the last year. http://hassconsult.co.ke...s/Q22019Residential.pdf
Quote:Slowed growth has reduced liquidity in the market and in the process making developers cut prices which has
presented opportunities for investors.
“We have seen an increase in distressed properties in the market as reflected by advertised property auctions.
Additionally, developers are offering generous terms which continue to suppress prices and rents to the point where investors are opting for safer short-term investments while they cherry-pick the best bargains in the market,” said Ms.Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Investors active in the market are buying properties at discounted prices confident that once the economy picks up there will be liquidity which will be immediately be reflected in the property market through increased prices.
“Despite the drop in asking prices it is important to note that property is a long-term investment and has historically performed better than other asset classes in the long run,” noted Ms. Hassanali.
The quarterly price deductions were led by Juja with houses in the satellite town dropping by 4.1 per cent. Athi River had the best property market with apartment prices in the area increasing by 2.8 per cent over the same period.
On an annual basis Nyari was the best performing suburb with houses in the area increasing by 13.2 per cent while at the tail end was Kilimani with apartments in the area dropping by 4 per cent.
When they start talking like those stock market pundits then you know if you know CBK meanwhile says the economy is performing at near full potential.
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Rank: Elder Joined: 12/7/2012 Posts: 11,908
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Her jii & Key not tea In the business world, everyone is paid in two coins - cash and experience. Take the experience first; the cash will come later - H Geneen
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Rank: Member Joined: 1/18/2019 Posts: 185 Location: kenya
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wukan wrote:Mtublack wrote:ten years down the line has the bubble burst yet? From the Hass property index- The index shows a property price fall of -1.0% in the last month, fall of -3.0% in the last quarter and a -3.2% fall in the last year. http://hassconsult.co.ke...s/Q22019Residential.pdf
Quote:Slowed growth has reduced liquidity in the market and in the process making developers cut prices which has
presented opportunities for investors.
“We have seen an increase in distressed properties in the market as reflected by advertised property auctions.
Additionally, developers are offering generous terms which continue to suppress prices and rents to the point where investors are opting for safer short-term investments while they cherry-pick the best bargains in the market,” said Ms.Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Investors active in the market are buying properties at discounted prices confident that once the economy picks up there will be liquidity which will be immediately be reflected in the property market through increased prices.
“Despite the drop in asking prices it is important to note that property is a long-term investment and has historically performed better than other asset classes in the long run,” noted Ms. Hassanali.
The quarterly price deductions were led by Juja with houses in the satellite town dropping by 4.1 per cent. Athi River had the best property market with apartment prices in the area increasing by 2.8 per cent over the same period.
On an annual basis Nyari was the best performing suburb with houses in the area increasing by 13.2 per cent while at the tail end was Kilimani with apartments in the area dropping by 4 per cent.
When they start talking like those stock market pundits then you know if you know CBK meanwhile says the economy is performing at near full potential. Just a mere oversupply. Simple supply and demand dynamics, no bubble no nothing. If you have some nice cash in your pocket, buy buy buy. Discounts are juicy and there for the taking. We've had a flat few years but it should start heading up unless we f*** up 2022 somehow. Otherwise the oversupply is slowly being absorbed.
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Rank: Elder Joined: 1/8/2018 Posts: 2,211 Location: DC (Dustbowl County)
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Tis amazing to me that 10+ years on. In a deficit subsector requiring hundreds of thousands of units to come on tap per year, some baghenya are still hoping for a housing crash #SimplyAmazing! Rafikis, mtangoja until the cows come home for another ten years. Pockets of price drops in specific subsectors of the housing economy mean zero. Especially on a long term curve that is going nowhere but up. And where on a macro scale mortgage percentages are next to zero, meaning most smart baghenya own free and clear. You simply cannot shake or scare a person who owns their home outright. This is why the banksters had to implode Greece. Free and clear homeownership rates were too high for their liking.(Speaking of which be very afraid of gava's new schemes to encourage mortgages that has been imposed "from above" by WB and IMF). If you fire a guy who owns his own home clean, he can simply retreat there plant beans and live very well for the rest of his life. And he is not desperate to sell because he has no rent to pay so ametulia tuliiiiii. Not so for a borrower-slave in payslip nation. Bottom line, keep waiting ma brodas for the non-existent crash to come. While the rest of us keep buying and building. Like I have said many times before hapa, metro Nairobi today is like Hong Kong was in the 1970s. People said it was going to "crash soon." 5 decades later prices are still rising because wazitos there all own their diggz debt free and have nothing to lose or be scared about!
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Rank: Elder Joined: 7/28/2015 Posts: 9,562 Location: Rodi Kopany, Homa Bay
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Hass has said prices have actually gone UP... https://www.businessdail...0476-nadi3bz/index.html
Quote:Landowners and housing property owners in Nairobi satellite towns continued to enjoy better sales due to improved road infrastructure.
Realtor, HassConsult’s Second Quarter Land Price Index report shows Kitengela controlled a 19.1 percent market share of the properties on sale followed by Ruiru at15.1 percent, Thika 9.4 percent with Ongata Rongai and Ngong tying at 7.9 percent.
“Demand for land in satellite towns pushed up prices by 3.2 percent with buyers favouring properties going for below Sh15 million an acre compared to Nairobi’s suburbs that asked for higher prices for land and developed properties,” said head of research and development Sakina Hasanali.
“Land and houses are viewed as a major investment vehicle that Kenyans have found reliable where Sh1 million invested in buying an acre of land in Nairobi’s satellite towns a decade ago is now worth Sh8.81 million compared to Sh2.29 million invested in property (Nairobi’s suburb), Sh2.64 million (bonds), Sh1.35 million (savings) and a paltry Sh490,000 in equities,” she said.
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Rank: Veteran Joined: 11/13/2015 Posts: 1,590
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MugundaMan wrote:
Millenials will disappoint you brother. As soon as Qwetu fad fades they will move to capsule hotels then hostels then back to campus dorms then age out of their fads, settle down, get married and buy a bungalow Mugundaman built in DC. Good luck struggling for rents from this lot. Turnover will be extremely high and they have spent all their money on clothes, whiskey and parties so are mostly broke. It's like saying you will open up a gourmet restaurant to cater to sufferers. Such fads don't last. And not to mention they will trash your building big time. And once you split your maisonette to a rooming house you cannot reverse things at reasonable cost. Si that's what's happened with all those dingy hostels in Ngara?
ona sasa...qwetu is going places getting a better rating than GoK Quote:The strong rating of real estate developer Acorn Group’s Sh5 billion green bond intended to finance the building of student hostels has put a shine on the investment class that is driven by increased college enrolment, which has outpaced the building of accommodation in universities. Global ratings agency Moody’s has given the bond a B1 rating, placing it higher than the Kenyan government’s sovereign rating of B2 stable. https://www.businessdail...2092-8ynw8tz/index.html
Then see how studios are selling like hot cake https://www.south-suites.com/floor-plans
Millenials are the bora uhai types, those big houses will not impress them. Sell them a lifestyle.
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Rank: Elder Joined: 7/22/2008 Posts: 2,703
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Meanwhile Properties being held by banks for auction: https://www.garam.co.ke/...k-forwards-July-2019.pdf
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