Demand for housing units in Kenya is putting pressure on builders who are now feeling the heat in meeting the rising demand.
One of the major concerns among housing developers is diminishing land to put up buildings as well as fluctuating land prices leading to a housing deficit in Kenya.
National Housing Corporation (NHC) Chairman Bosire Ogero said the parastatal was down to its last piece of land in the Langata area of Nairobi, putting on it immense pressure to build low cost houses for citizens.
“We also have a problem with the processes of land allocation for housing developments in urban areas and where land is allocated to us it ends up being grabbed,” Ogero said.
Ongero noted that price of houses in Nairobi had doubled over the past few years due to increased demand – locking out middle income earners from home ownership. He was speaking during the handing over of the Langata Court estate phase one and two by NHC.
Ogero further said the housing approval process by local municipalities was slowing down the pace at which developers can put up housing units.
“The planning by-laws used take a long time to get the approvals obtained,” he said.
The annual demand for housing currently stands at 150,000 units against a meager supply of 30,000 units.
The Langata Court houses will retail at between Sh3 million and Sh5 million for a three bedroom house, half the price that the private sector is charging.