By Seth Emmanuel
Contrary to recent reports, the residential cooled its heels in the last three months, with signs that the market may be in for a period of consolidation, according to latest market trends.
Kenya’s property market experienced static sales price performance in the second quarter of the year, driven by the oversupplied apartments in Nairobi and its environs.
The latest quarterly report by HassConsult, however shows little signs of recovery despite the existing challenges posed by the Coronavirus pandemic.
“At a time when economic stagnation has largely riddled the middle market with salary cuts, unemployment and small business burnout, properties with lower ticket prices but still within the city are becoming an attractive investment,’ said Ms. Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
On the rental front there was a mild improvement of 1.1 percent over the quarter as the market slowly shows moves to recovery.
This was heavily backed by the increase in rental prices of detached houses up 3.4 percent in the quarter, symptomatic of the people within large international and multinational organizations who continue working from home and whose elimination of mobility costs have enabled higher housing budgets.
Rents have increased by 4.23 fold since 2001, while the average rental for a property in up market neighborhoods has gone from Sh38, 516 in December 2000 to Sh 162,743 in June 2021.
The average rent for a 4-6 bedroom property is currently Sh 238,614. The average rent for a 1-3 bedroom property is currently Sh 81,489.
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