The Kenyan real estate industry has indicated exponential growth within the past two decades as evidenced by the contribution to the nations GDP. The growth is driven by a number of factors which include; infrastructural developments like roads and utility connections; demographic trends like rapid urbanization and population growth and the stable GDP. For most of the property seekers, there have been changes in demand and pricing and the advertising methods. This sector continues to recover from the effects of the Covid 19 pandemic while seeking to stabilize to gain the confidence of investors once again. Here are a number of real estate trends in 2022 to watch out for;
a) Reduction in prices
As a result of oversupply in the real estate market in some locations such as South B and Kilimani, the prices dropped. The issue of advertising too much on a common listing by multiple agents forced them to lower prices as the target audience is the same.
b) Drop in demand
According to research done by the experts the sale leads dropped at a lower rate of 3% to level up with rental leads that dropped at the rate of 8%.
c) Improved infrastructure
The infrastructural sector has been key in realizing the real estate sector’s goals. A notable improvement on the infrastructure is the Nairobi Expressway that is intended to open up the region to investments thus boost the nations economy. Other projects include the Nairobi Western Bypass and the LAPSSET. With the improved connectivity, the real estate sector automatically gets a boost as remote land enquiries increase.
d) Availability of mortgages and affordable housing.
The growth of this sector has been boosted by the efforts by the government to increase financing options for the citizens. The homeowners have increased as outlined by the Kenya Mortgage Refinance Company. With the reduced availability and high prices within the city, investors and developers are looking to make purchases outside the city. Affordable housing initiatives and land demand in satellite towns continues to rise.
