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Insightful take on Nairobi Real Estate
Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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Thika Arcade is one of biggest buildings in Thika CBD.During the 90's I used to think that the owner was very stupid for having such a huge building that was vacant past the first floor.Today it fetches 50k/month rent even for the top floors.In real estate,if the location is right you can only get burned by financing a project with short term credit.
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Rank: Chief Joined: 1/3/2007 Posts: 18,347 Location: Nairobi
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whiteowl wrote:Thika Arcade is one of biggest buildings in Thika CBD.During the 90's I used to think that the owner was very stupid for having such a huge building that was vacant past the first floor.Today it fetches 50k/month rent even for the top floors.In real estate,if the location is right you can only get burned by financing a project with short term credit. How long was it vacant? Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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Chaka wrote:Kate_Mbarire wrote:Langata is now in the ranges of 20-26m & South B for between 15-22m. Lucky guys who bought at 5-7m.  Yeah....these guys are now laughing all the way to the bank or bar  to get property in langata or southB these days you really have to cough a lot of money like you said.2008...this was just 10years ago and yet the landscape has changed so much! My question would be this:Is "past" performance in real estate and indicator of future performance? [/quote] Quote:Age structure: 0-14 years: 40.02% (male 9,557,274/female 9,497,870)
15-24 years: 19.15% (male 4,552,448/female 4,567,894)
25-54 years: 33.91% (male 8,170,264/female 7,976,751)
55-64 years: 3.92% (male 856,092/female 1,009,075)
65 years and over: 3% (male 614,751/female 813,320) (2017 est.) Do you see all those kids 0-14 years most of them want to come to Nairobi the city of dreams. The guys between 25-54 are the ones required to provide capital for the real estate for that next generation. You can't be doing less than 10 floors in Nairobi if you are ever going to accommodate that bulge. That's the indicator of future performance of the real estate.
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Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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Wukan is very funny! When you corner him on Kirinyaga rd he mentions everything else (including Westlands ) BUT Kirinyaga rd! Mara ooo look at Ngara Ooo look at Langata Ooo look at South B. First, he doesn't stop to explain how a 3br from 2009 at 7m in South B is affiliated with a BEDSITTER in Kirinyaga rd. Second, even if we run with his argument of comparing apples with oranges, he doesn't stop to ask why a 5m bed sitter on Kirinyaga rd has remained at 5m and not risen since 2009 to 26m like Langata
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Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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whiteowl wrote:Thika Arcade is one of biggest buildings in Thika CBD.During the 90's I used to think that the owner was very stupid for having such a huge building that was vacant past the first floor.Today it fetches 50k/month rent even for the top floors.In real estate,if the location is right you can only get burned by financing a project with short term credit. I would build in Thika CBD all day any day over bedsitters on Kirinyaga rd! Just go and walk hapo Grogon on a good day and come back and report whether it is comparable to Thika CBD in any way, shape, form or fashion.
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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VituVingiSana wrote:whiteowl wrote:Thika Arcade is one of biggest buildings in Thika CBD.During the 90's I used to think that the owner was very stupid for having such a huge building that was vacant past the first floor.Today it fetches 50k/month rent even for the top floors.In real estate,if the location is right you can only get burned by financing a project with short term credit. How long was it vacant? I dont have an exact timeline but it was quite a number of years during Moi era.When Kibaki took over,the economy took off and it started enjoying full occupancy and other taller buildings started coming up.
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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whiteowl wrote:
Thika Arcade is one of biggest buildings in Thika CBD.During the 90's I used to think that the owner was very stupid for having such a huge building that was vacant past the first floor.Today it fetches 50k/month rent even for the top floors.In real estate,if the location is right you can only get burned by financing a project with short term credit. I hope that investor is enjoying the fruits of his labour i,e that the initial lack of tenants did not stress him/her and give him/her hypertension?
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Rank: Veteran Joined: 11/13/2015 Posts: 1,654
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MugundaMan wrote:Wukan is very funny! When you corner him on Kirinyaga rd he mentions everything else (including Westlands ) BUT Kirinyaga rd! Mara ooo look at Ngara Ooo look at Langata Ooo look at South B. First, he doesn't stop to explain how a 3br from 2009 at 7m in South B is affiliated with a BEDSITTER in Kirinyaga rd. Second, even if we run with his argument of comparing apples with oranges, he doesn't stop to ask why a 5m bed sitter on Kirinyaga rd has remained at 5m and not risen since 2009 to 26m like Langata Gosh! I wouldn't want to hangout with you at a cocktail, you can't move a conversation forward  I have to spell it out for you. I'm just posting stuff on the nairobi real estate as the title of this thread is "Insightful take on Nairobi Real Estate". Your insights on nairobi real estate are most welcome. If you have none then stick to dustbowl insights
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Rank: Veteran Joined: 4/16/2014 Posts: 1,420 Location: Bohemian Grove
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Chaka wrote:whiteowl wrote:
Thika Arcade is one of biggest buildings in Thika CBD.During the 90's I used to think that the owner was very stupid for having such a huge building that was vacant past the first floor.Today it fetches 50k/month rent even for the top floors.In real estate,if the location is right you can only get burned by financing a project with short term credit. I hope that investor is enjoying the fruits of his labour i,e that the initial lack of tenants did not stress him/her and give him/her hypertension? He is all good.Plus he had the advantage of acquiring the land at a very low price.Building in Thika town in the 90's is the equivalent of buying land in Nairobi CBD in the 70's.The capital gains for the piece of land is more than enough payoff for the depressed rent earnings he endured.
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Rank: Elder Joined: 1/8/2018 Posts: 2,212 Location: DC (Dustbowl County)
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wukan wrote:Gosh! I wouldn't want to hangout with you at a cocktail, you can't move a conversation forward I have to spell it out for you. I'm just posting stuff on the nairobi real estate as the title of this thread is "Insightful take on Nairobi Real Estate". Your insights on nairobi real estate are most welcome. If you have none then stick to dustbowl insights You mean regarding the Kirinyaga Rd "luxury bedsitters?" Who brought them up on this forum? And isn't Kirinyaga rd in Nairobi and hence worthy of this discussion?
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