We are a group of 20 serious and like minded people looking for a piece of land in Kisumu. The plan is to buy some land (between 1/2 and 1 acre) and build 1 and or 2 bed low to medium income rentals without borrowing from a bank as interest rates are too high. We want to achieve maximum return on investment and build the rental/sale property portfolio over say 5 years that can give a decent return on investment. Questions we have are:

1. Which areas are suitable and what are the costs per acre/plot etc?
2. What are approximate construction costs?
3. Given the high rate of "creative" fraud in many GOK land offices in Kenya today, how does one apply appropriate due diligence in ensuring no nasty issues are confronted at any point later in time.
4. Is the real estate property bubble about to burst in Kisumu as indicated for Nairobi recently on similar issues?
5. Are there any real offers out there for clean transactions?
6. What are the annual land appreciation rates in Kisumu?
7. What are the reasonable viability investment options?

We will be happy to get any feedback and will share experiences we have on this forum.

Thanks!

Kisumu residents are the most trigger happy rioters and looters. Good luck

Oh sorry...I didnt read it well and thought the thread was about how to land in Kisumu.

I lived there and its true that robberies are rampant relative to the size of Kisumu. Its generally not secure but you can survive if you do not expose yourself to late hours. Property demand is high and rental income is good.. NHC are setting up units at Kanyakwar www.nhckenya.co.ke

@ TheGreat, your response labelling Kisumu residents as trigger happy rioters and looters is completely misplaced here. It would perhaps be more useful if you answered asked questions (if you have any answers/experience).

Stature or statue.. :)

Jalul, Penny here! I'll speak of what I know, as of last December last year when I was last in Kisumu. Disclusre: I'm a Kisumu guy...raised there! I have rental properties there as well!

1. Which areas are suitable Nyamasaria, Riat & Kajulu Hills and what are the costs per acre/plot etc? Very very expensive - 3m/acre and that's if you are lucky
2. What are approximate construction costs?Ksh. 25 - 30 per square meter. This will depend on finishes and other factors
3. Given the high rate of "creative" fraud in many GOK land offices in Kenya today, how does one apply appropriate due diligence in ensuring no nasty issues are confronted at any point later in time.Don't touch the brokers, yes even with a ten foot pole. Run the other way when you see one. If you can, and it's not easy, find the land owner and deal directly. Takes some networking to achieve this.
4. Is the real estate property bubble about to burst in Kisumu as indicated for Nairobi recently on similar issues?Affordable housing is still a challenge in Kisumu. I don't think we'll be seeing a burst anytime soon. Key word, affordable.
5. Are there any real offers out there for clean transactions?Yes! refer to my answer to #3 above
6. What are the annual land appreciation rates in Kisumu?15% - 20% based on my experience
7. What are the reasonable viability investment options? Don't limit yourself.

Don't listen to nay sayers mara Kisumu this oh Kisumu that! Once again, these are my opinions and should not be taken as professional advice.

Regards,
Penny!

Is that correct, 3M per acre? Just crosschecking the figures.
In Eldoret..places with such rental returns are think 4-6 times that..someone I know recently bought a quarter an acre @6M

These smaller towns particularly those that are county HQ's are especially competitive when it comes to cost of land relative to location & availability of utilities as compared to Nairobi & its environs.