@TuskerMoto; excellent thread,kudos!

I spent three months studying the NRB & Metro realstate market,this thread would have saved me plenty of legwork ;) ... despite a few ego postings the discussion has been quite insightful.

My take on Kenya realstate -

The housing market has been explosive,and we may be at the TOP (until after 2012 elections) for reasons well articulated on this thread,not because the housing demand has been met,but due to shortage of affordable supply.

For an honest professional couple with two children,the affordable mortgage is 2.5M - 3.5M,such housing is ONLY availlable in the NRB Metro outer areas as variously noted.

So,what happens to mortgages of over 10M ... expect a dramatic increase in foreclosures ...but,these will ONLY be spotty deals here and there,note,at this time banks are very coutious with their mortgage loans ...

Downtown NRB and immediate hoods Living Comfort Index is plummeting,the number of cars in town will double in under three years and going in/out of town is already a nightmare ... what I've seen in the West is conversion of vacant downtown office space into Lofts and rehab of older houses ( akin to what's happenning in Pangani,etc) ...

I reluctantly went to downtown for business appointments,goverment offices and to meet friends ... how would it be posible to do all this outside of downtown would call for decentralization of servives both private and government ....

More later ...

@ Bwenyenye Yes for sure,I can see zoning coming into effect just as it is in Dubai,but may be for now not to the level of dubai but some zoning is on its way coming,stories i have read in SK about an internet and media city is in the plans somewhere in kitengele,will ofcourse go with housing and if they copy paste dubai then what you mention about leaving close to your work area will be the case in that foreseen city

@pm,

I thot the Technology Park will be somewhere past Machakos junction along Msa road. I heard that the govt got 3000 acres they were looking for for the park at a place called Konza specifically malili ranch. I think we need to confirm some of these info so that we can position ourselves strategically.


..wise as a serpent,humble as a dove

Can someone tell me what effect the return of Kenyans from the diaspora has on our property market. First they influenced the market by pushing up demand. They also dictated the style and taste of the apartments. Now I hear that some need money on their return and this might cause a supply glut.




Fundamentals + Sentiments = Position

Can someone tell me what effect the return of Kenyans from the diaspora has on our property market.

It depends on alot of things,it could drive the market up if they were sent home with a package,it could increase demand for houses if its a large number returning the will need to stay somewhere and many other things,however as someone said dont expect prices to fall but stagnet maybe for a while in the upper market.

First they influenced the market by pushing up demand. They also dictated the style and taste of the apartments. Now I hear that some need money on their return and this might cause a supply glut.

Our property industry is a small market demand in middle class housing will always outstrip supply,and there are still Kenyans in the diaspora with lots of money and ready to buy houses. it doesnt mean that the Kenyas returning have to sell thier property they can lease or rent it out and not all returning home have property or are broke,i personally doubt that prices will come crushing downwards in Kenya.