Although we all agree there is hyper competition in real estate and that demand is so strange people at times seems to think owning the land is the end game I still don’t see what will cause the bust..

What is the cause of demand for land and housing..

1. Speculation

2. Foreigners rushing into Kenya to catch a bit of the wealth as the economy grows ( some find land cheap compared to where they come from).

3. Population of 46M people growing at least 2.5% per year.

4. More of lower income moving into middle income and can afford more luxury.

5. The UN bodies hosed in Kenya.

6. Kenya being the gateway to other EA countries there are a lot of transit residents

7. The fact that those with large chunks of land are not willing to sub divide.


8. Migration from rural to urban.

9. A Diaspora who want to invest in the country and can afford a bit more than the average local.

10. The fact that most of the new comers are knowing pulling into Chama’s and bank loans are no longer the only way to invest. Check out what is the % of real estate on mortgage.


Please continue.......

Yawa

Saw some apartments in Hatheru Road going for 49m and some have been booked, so I don't what bubble we're talking about.

But on a different note I saw an article in Business Daily that either WB or IMF says Kenyan Banks have not safeguarded themselves against the rising bad debts and they could bring them down... could be from housing loans.

Am coming!!!
www.businessdailyafrica....0/-/y49k62z/-/index.html keep my space.

not really but the demand has slowed down and the number of vacant house's continues to increase, there was a time you couldn't get a vacant house without being exploited by agents dishing viewing commissions