![]() Nairobi northern bypass: Ruaka has a good transport network system connecting it to the Nairobi City Center via Limuru Road, and Thika using the northern bypass route, thereby attracting businesses and property developments.Essentially, it offers an opportunity to not only own and enjoy a home, but also a location that provides an attractive real estate investment opportunity, driven by 6 main factors: Ruaka is situated 20 minutes drive away from the Westlands district, and a few minutes from Gigiri, which is where the UN headquarters are located. We have picked Ruaka as one of our key areas of focus for developments because it is one of the few areas in the Nairobi metropolis that provides a secure, accessible, and convenient location with significant potential for attractive financial returns. *Satellite market data sourced from HassConsult report. The chart below shows the appreciation of land prices in satellite towns across Nairobi and its metropolis: Major infrastructure developments that have opened up the satellite towns for development.The current market inability to cater for the housing shortage, and even existing housing does not provide adequate amenities such as back up power, reliable water, sewer and drainage, security and comprehensive lifestyle amenities such as clubhouse and gym,.Huge demand from the middle class, who in our view is anyone who has Kshs 100,000 per month in disposable income,.Relative affordability of land in satellite towns,.Kenya’s residential property market in middle income category has seen a price surge resulting in the market outperforming most other asset classes in Kenya over the last 10 years.Īs can be seen below, the real estate sector has outperformed public markets investments in fixed income and equities, while our development in Ruaka, “The Alma”, is delivering above market returns of 28% and 41% for completed units and developer equity, respectively.Īs highlighted in our Cytonn report #33 last week, there is a huge opportunity in providing housing for the low to middle income bracket in Kenya, especially along the bypasses, which have opened up development opportunities.ĭevelopment opportunity in satellite towns is driven by: Growth in the economy has had a profound positive effect on the middle class, who have benefitted greatly on the back of improved economic conditions, which has resulted in increased demand of residential housing outpacing market supply. ![]() The diverse population lends itself to providing a truly cosmopolitan city serving as the regional headquarters for some of the world’s largest corporations such as General Electric, Hewlett-Packard, Google, & Coca-Cola. Houses for sale in upcoming areas of Nairobi and its metropolis, where growth is centred, are highly sought after. Kenya has grown through the years to become East and Central Africa’s business and financial centre.
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