Kenya’s real estate cools in Q3

Cytonn Real Estate, the development affiliate of Cytonn Investments, has released the Q3’2019 real estate market review, highlighting the performance of various sectors including the residential, commercial office, retail and land sectors.

According to the report, the real estate market performance remained largely stagnant in Q3’2019, with the residential sector yield remaining unchanged at 4.9%, while commercial office and retail sectors recorded rental yields of 7.7% and 8.0%, respectively in Q3’2019, from 7.8% and 8.2%, respectively, in H1’2019. The sector was mainly constrained by; (i) delay in the processing of construction permits by some county governments, (ii) oversupply in the commercial office and retail sectors with a surplus of 5.2 mn SQFT and 2.0 mn SQFT, respectively, as at 2018, and (iii) slow private sector credit growth.