Sales at astonishingly high prices – coming at a time of sluggish economic growth – are cementing Nairobi as East African’s haven for millionaires.
British private equity fund Actis Capital is just one of the many investors who are swimming in money after successfully selling dozens of luxury houses in Nairobi.
Actis says it has sold 60 per cent of its Sh46 million-a-unit villas at Garden City, in the second phase of the mixed-use development located in Ruaraka next to the East African Breweries on Thika Road in Nairobi.
Phase one of the development comprises 76 two-bedroom, three-bedroom houses and duplexes that were all sold out in a record time for between Sh21 million and Sh40.8 million.
Garden City Mall development manager Mumo Kianga said that were it not for the market slowdown due to the forthcoming polls, the houses would have been sold out already.
“We are experiencing slowdown in the market as a result of the upcoming general elections. By now, we would have sold up to 100 per cent,” Kianga said.
According to the latest market report by property consultancy firm Knight Frank, the take up of property has slowed down as investors await the outcome of the August 8 elections.
Knight Frank managing director Ben Woodhams said: “There is not too much happening in the election year, a lot of our clients are saying they are getting ready to do their investments, but will wait until after the election.”