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Insightful take on Nairobi Real Estate
Rank: Veteran Joined: 11/13/2015 Posts: 1,653
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interesting stuff....like I said if Nairobi sneezes DC will catch pneumonia Quote:HassConsult today released the annual Hass Property Index results for 2019, showing that property prices in satellite towns dropped by 0.5 percent on an annual basis, the first such drop since 2008 when the index was launched.
The fall in house prices in satellite towns on an annual basis bucks the trend as these suburbs have traditionally recorded annual growth in house prices driven by investors who are holding off buying decisions due to the challenging economic environment.
House prices in satellite towns drop by 0.5 per cent in 2019, the first ever drop since 2008, showing home buyers in these areas are finding the economic environment challenging.
Rents in Nairobi suburbs cool falling by 2.3 per cent on an annual basis and 1.3 per cent over the quarter
Juja recorded the highest drop over both the quarter and year at 1.9 percent and 9.6 percent respectively courtesy of a price correction in the satellite town.
On the rental front satellite towns recorded a 2.1 percent drop in rents over the year while Nairobi recorded a 2.3 percent
drop in asking prices over the same period.
Quote:
• In 2001, Apartments took up 23.5% of the market,
semi-detached took up 24.5% of the market and detached houses took up 52% of the market
• In December 2019 however, Apartments took up 61.1% of the market, Semi-detached Houses took up 25.7% of the market and Detached Houses took up 13.2% of the market
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Rank: Member Joined: 6/1/2017 Posts: 288
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wukan wrote:interesting stuff....like I said if Nairobi sneezes DC will catch pneumonia Quote:HassConsult today released the annual Hass Property Index results for 2019, showing that property prices in satellite towns dropped by 0.5 percent on an annual basis, the first such drop since 2008 when the index was launched.
The fall in house prices in satellite towns on an annual basis bucks the trend as these suburbs have traditionally recorded annual growth in house prices driven by investors who are holding off buying decisions due to the challenging economic environment.
House prices in satellite towns drop by 0.5 per cent in 2019, the first ever drop since 2008, showing home buyers in these areas are finding the economic environment challenging.
Rents in Nairobi suburbs cool falling by 2.3 per cent on an annual basis and 1.3 per cent over the quarter
Juja recorded the highest drop over both the quarter and year at 1.9 percent and 9.6 percent respectively courtesy of a price correction in the satellite town.
On the rental front satellite towns recorded a 2.1 percent drop in rents over the year while Nairobi recorded a 2.3 percent
drop in asking prices over the same period.
Quote:
• In 2001, Apartments took up 23.5% of the market,
semi-detached took up 24.5% of the market and detached houses took up 52% of the market
• In December 2019 however, Apartments took up 61.1% of the market, Semi-detached Houses took up 25.7% of the market and Detached Houses took up 13.2% of the market
Well at least Kenyan real estate isnt built up on ultra low interest rates,cheap lending and total disregard of credit analysis standards like the sub-prime mortgage mess of the US and currently the insane housing bubble in Australia,Canada and Hongkong.Such laxity creates enormous bubbles that violently burst like in the 2008 housing recession. Just to leave a shocker here.SOME DANISH BANKS ARE OFFERING MORTGAGES AT NEGATIVE INTEREST RATES.WHAT!!!Check out below Danske bank in Denmark offering mortgages at MINUS 0.5% to ensure mass buying of houses and boost the economy.  https://www.cnbc.com/201...ive-interest-rates.html
What if Kenyan banks offered mortgages at negative interest rate ie. its almost the bank paying you to take a mortgage.Insane isnt it.Every Otieno,Wanjiku,Mutisya will line up to take such a mortgage Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Veteran Joined: 11/13/2015 Posts: 1,653
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Interesting how things turn Quote:Health concerns amid the Covid-19 pandemic could have informed renewed demand for low-density buildings with townhouses dominating the property market to edge out lowly priced apartments.
The quarter one Housing Price Index report by Kenya Bankers Association (KBA) indicates a change of heart among property seekers who sought townhouses unlike in the past when apartments were popular due to proximity to urban centres and price friendliness.
“While the market remained largely depressed, the marginal easing was supported by the supply-demand interaction with a leaning towards more demand in a relative context,” the KBA-HPI indicates, adding demand shifts in the quarter were based on concluded sales, which rose by 13.95 percent. Quote:Further, unlike in prior quarters usually characterized by high demand for apartments,quarter one of 2020 was one characterized by a run for townhouses which accounted for 45 percent of the units sold. Apartments accounted for 33 percent, bungalows and Maisonettes accounting for 12 percent and 10 percent respectively.
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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wukan wrote:Interesting how things turn Quote:Health concerns amid the Covid-19 pandemic could have informed renewed demand for low-density buildings with townhouses dominating the property market to edge out lowly priced apartments.
The quarter one Housing Price Index report by Kenya Bankers Association (KBA) indicates a change of heart among property seekers who sought townhouses unlike in the past when apartments were popular due to proximity to urban centres and price friendliness.
“While the market remained largely depressed, the marginal easing was supported by the supply-demand interaction with a leaning towards more demand in a relative context,” the KBA-HPI indicates, adding demand shifts in the quarter were based on concluded sales, which rose by 13.95 percent. Quote:Further, unlike in prior quarters usually characterized by high demand for apartments,quarter one of 2020 was one characterized by a run for townhouses which accounted for 45 percent of the units sold. Apartments accounted for 33 percent, bungalows and Maisonettes accounting for 12 percent and 10 percent respectively. Dustbowlites like Mulmulwas Mugundaman told you guys this two years ago but you refused to listen. Apartment life has all sorts of hazards. Townhouses and maisonettes with their own spacious gardens are the future. Nobody wants to contract covid and cholera in a cramped Nairobi apartment! In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Member Joined: 5/15/2019 Posts: 687 Location: planet earth
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Look how these njamaas and njamalettes are crying big time in apartments In an apartment you have almost zero control of your life once you exit your door! To repair water woes, you have to involve the whole estate, to cry over water pressure..same same. Everything is just a mess. Service charge defaulters ndio hao hao. No wonder the cartels move in to exploit the chaos! a Maisonette owner on the other hand ametulia raha mustarehe tuliiii. You will never here them complaining ati cartels have conspired not to pump water into my tank. In the final analysis, it all boils down to sheer plain old hard work and dogged persistence. Nothing more, nothing less!!
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Rank: Veteran Joined: 11/13/2015 Posts: 1,653
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Quote:Renting apartments in Nairobi’s central business district (CBD) can be up to 126 percent more expensive than leasing properties in the capital’s periphery, according to market and consumer data firm Statista.
The monthly rent for a one-bedroom house in the CBD is about $432.33 (Sh49,761) compared to $191.32 (Sh22,020) in the suburbs. A three-bedroom apartment in the CBD costs an average of $990.75 (Sh114,035) a month while leasing a similar property on the outskirts of the city costs $476.21 (Sh54,811).
“In Nairobi, Kenya, renting a one-bedroom apartment in the city centre cost almost as much as a three-bedroom apartment outside the city centre in 2022,” said Statista.
The data shows the high returns enjoyed by landlords owning properties in the core areas of the city. The returns are particularly high for those who built or acquired the houses more than a decade ago when building costs and buying prices were relatively lower.
Location is the primary determining factor of housing prices in the capital cities with the prime properties in or close to the CBD consistently outperforming those farther from the business district. Properties in the core of the capital nonetheless continue to command a premium
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Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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