Buying property in Kenya, especially in the major towns, is a good investment thanks to the record demand for housing that has seen values rising over 500 per cent in the past 10 years.
However you should always exercise due diligence before parting with your hard-earned cash to ensure that you don’t buy a property that is on a road reserve, grabbed land or wetland.
Here is a quick analysis of the top three Kenyan cities to help inform your choice when purchasing a house or land in the country.
Nairobi, the capital city of Kenya, is the hub of real estate development in the East African region. The city has over the past few years experienced a sharp rise in population due to rural-urban migration that has led to an unprecedented demand for housing.
To meet this demand, property developers are working overtime to build apartments and high rises across the city estates – including the upmarket suburbs such as Kilimani, Upper Hill and Parklands. This has seen land prices in some areas rising more that 10 times in the past five years!
The coastal city of Mombasa is currently enjoying construction boom thanks to the increased tourism and business activities in the region. A high number of tourists who previously stayed in hotels have discovered it is wiser to invest in holiday homes than to stay in hotel rooms over holidays.
Property developers in Mombasa are therefore busy putting up holiday homes and similar facilities in the coastal region and many of them are reportedly making ‘very good’ returns on their investments.
Most popular areas among developers are Nyali, Shanzu, Mtwapa, Kizingo, Kisauni and Majengo.
The proposed Lamu Port project as well as the ongoing expansion of the Mombasa port are expected to increase business activities in the region and this has also lead to a sharp increase in the value of property.
Commonly referred to as the lakeside city, Kisumu is a hot spot for investors scrambling for vantage positions for apartments overlooking Lake Victoria, the world’s second largest fresh water lake in the world.
The city is enjoying a property boom with numerous flats and apartments coming up across the up-market areas of the city – a departure from the once dominating bungalows and mansions.
The most preferred areas in the city include the leafy suburbs of Milimani, Hills View and Riat Hills.
Each of the above cities has a well developed infrastructure and successful property development history and is highly recommendable to anyone thinking of buying property in Kenya.