THE PHENOMENON OF REAL ESTATE GROWTH IN KENYA
The phenomenon of real estate growth in Kenya has been significant in recent years, it has taken a quick turnout, and within a short time, there has been a constant change, reformation, and molding of Kenya’s economy.
However, to continue seeing these benefits, note that several factors influence its operations. The factors have both positive and negative effects. Here are some key factors affecting Kenya Real Estate Growth.
1. Urbanization and Population Growth
Kenya has experienced great urbanization with a growing population and an increasing number of people migrating to urban centers. This has led to a rising demand for housing and infrastructure, driving the expansion of the real estate sector. Increase in foreigners has also led to increase in demand of both commercial and residential properties.
2. Economic Growth and Stability
Kenya has witnessed steady economic growth over the past decade, creating a middle class with increased purchasing power. This has fueled demand for residential and commercial properties, leading to the expansion of real estate projects. Due to economic stability there be an increase of investors in the country.
3. Infrastructure Development
The government has been investing in infrastructure development, such as roads, bridges, and airports, to enhance connectivity and stimulate economic growth. Improved infrastructure attracts real estate investments as it opens up previously inaccessible areas for development.
4. Foreign Investment
Kenya has been attracting foreign investors in the real estate sector due to its favorable investment climate, political stability, and potential for high returns. Foreign investors have played a significant role in financing large-scale real estate projects.
5. Housing Deficit
Kenya faces a significant housing deficit, particularly in urban areas. The demand for affordable housing is high, and developers have been responding to this by constructing residential properties to cater to different income segments leading to real estate growth.
6. Government Initiatives
The Kenyan government has implemented various initiatives to promote affordable housing, such as the Affordable Housing Program under the Big Four Agenda. These initiatives aim to address the housing deficit by providing incentives and financing options for both developers and homebuyers.
7. Rise of Real Estate Companies
The growth of real estate companies and developers in Kenya has contributed to the expansion of the sector. These companies have been instrumental in developing residential, commercial, and mixed-use projects, catering to the diverse needs of the population. Kenya has over 1000 real estate company today which operate until an association.