GREAT NEWS FOR KENYANS WANTING TO BUY PROPERTY IN 2024
Kenya’s GDP is expected to grow by 6.0% in 2024, primarily due to household consumption and services, which will propel real estate growth in the country.
- For a variety of reasons, Kenyans are aggressively purchasing real estate, including homes and apartments.
- The year 2024 appears to be a good one to buy real estate.
- Every economy’s growth is always a sign of expansion across the nation’s sectors. Therefore, there’s a good chance that Kenya’s real estate market will grow.
In line with this optimism, a report by Sarabi Realty Group forecasts promising growth for Kenya’s Residential Real Estate market. It is anticipated to reach a value of Ksh US$0.62 trillion by 2024, signalling a robust trajectory for the country’s real estate sector. Furthermore, the market is projected to maintain a steady annual growth rate of 3.81% from 2024 to 2028, culminating in a market volume of Ksh US$0.72 trillion by the end of 2028.
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Kenya’s Economy
The economic situation in Kenya is improving. Kenya’s GDP is expected to increase by 6.0% in 2024, driven by growth in household spending and services, among other important sectors and drivers, according to a CNBC study. Every economy’s growth is always a sign of expansion across the nation’s sectors. Therefore, it is quite possible that Kenya’s real estate market will grow as a result of this forecast. How does this affect real estate? A rise would result in higher demand, which would raise the value of real estate.
In real terms, this means that a climate of rising property demand and appreciation will be advantageous to both homeowners and investors. It offers investors a chance to take advantage of the expanding market conditions and increase their return on investment. In a similar vein, homeowners may see an increase in the value of their homes, offering a concrete representation of wealth building and stability in their finances.
To put it simply, the real estate market benefits from the expected increase in Kenya’s economy since it indicates that more people would want to purchase real estate, which will raise the value of the asset.
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Residential Real Estate
The residential real estate market in Kenya has seen significant growth in recent years, driven by a growing middle class, urban migration, and changing lifestyles. Developers have been keen on providing affordable housing solutions to meet the increasing demand for residential units. Areas such as Kilimani, Kileleshwa, Lavington, Westlands, Riverside, Karen, Runda, Kitisuru and Mombasa road have witnessed a surge in residential developments, ranging from apartments to gated communities
Commercial Real Estate
The commercial real estate sector in Kenya has also experienced notable expansion, with the construction of shopping malls, office spaces, and industrial parks. Nairobi, as the capital city, remains a hub for commercial activities, attracting both local and international businesses. The demand for quality office spaces and retail outlets continues to drive investments in the commercial real estate market.
The Growth Paths
The property market is on an upward trajectory. The increasing Kenyan population creates a high demand for housing. Additionally, many Kenyans move from rural areas to urban centers for a better life. Add economic development to the mix, and you will have a thriving real estate market in Kenya.
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Changing Preferences in Property Demand
Due to evolving needs, Kenyans’ property demands are shifting. Many people, especially millennials, prefer apartments to traditional properties. This shift is due to convenience, better access to amenities, and the security of such homes.
Commercial properties are also experiencing change. The pandemic changed business dynamics and the ways people would use office spaces. Real estate market investors must adapt to ensure their properties attract buyers.
Roles of technology in the future of real estate in Kenya
Technology has played a critical role in the Kenyan property party. For instance, online platforms like Sarabi Realty Group have improved access to available properties. Additionally, online transactions have made leasing, selling, or buying land more straightforward.
IoT devices are making buildings smarter and more efficient. Smart homes equipped with IoT technology can offer automated lighting, heating, and security systems, adding value to properties and improving the living experience for residents.
Artificial intelligence will improve efficiency, particularly on the systems’ front. Virtual and Augmented reality will make viewings easier, especially for foreign investors. Other innovations like construction drones and modular construction will improve the real estate sector in Kenya.
Social class impact on the future of real estate in Kenya
Changes in social classes are one of the most significant factors affecting real estate in Kenya. Thanks to economic development, the Kenyan middle class has been growing. And with extra income, many buy property for residential and commercial purposes.
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Real Estate Trends in 2024
In 2024, the real estate landscape in Kenya is characterized by several key trends reflecting economic, technological, and social developments:
Affordable Housing Initiatives:
The government’s focus on affordable housing continues, with numerous projects aimed at providing low-cost homes to the growing middle and lower-income populations. Public-private partnerships are pivotal in advancing these initiatives.
Sustainability and Green Building:
There is a growing emphasis on sustainable construction practices and green buildings. Developers are incorporating eco-friendly materials, energy-efficient systems, and renewable energy sources to attract environmentally conscious buyers and reduce operational costs.
Increased Foreign Investment:
Kenya’s real estate market is attracting significant foreign investment, particularly from Chinese, Indian, and Middle Eastern investors. This influx of capital is spurring large-scale developments in both residential and commercial sectors.
Urbanization and Infrastructure Development:
Rapid urbanization is prompting extensive infrastructure development, including new roads, public transport systems, and utility services. These improvements are enhancing property values and making previously inaccessible areas more attractive for development.
Remote Work Influence:
The ongoing impact of remote work is shifting real estate dynamics. There is an increased demand for suburban properties and homes with dedicated office spaces as more professionals seek a balance between city amenities and comfortable living environments.
Smart Homes and IoT Integration:
The adoption of smart home technologies is rising, with more properties featuring integrated IoT systems for security, lighting, heating, and entertainment. This trend is particularly prevalent in high-end residential developments.
Regulatory Changes:
The real estate sector is navigating new regulatory frameworks aimed at improving transparency and protecting consumers. These changes include stricter enforcement of building codes, enhanced property registration processes, and measures to combat fraud.
In conclusion, Kenya’s real estate sector is set for significant growth in 2024, fueled by a projected 6.0% GDP increase and strong economic fundamentals. The residential market, driven by urban migration and a burgeoning middle class, is seeing a rise in mixed-use and affordable housing developments. Concurrently, the commercial sector is expanding with increased foreign investment and the construction of modern office spaces and shopping centers. Technological advancements such as IoT, AI, and online platforms are transforming property transactions and smart home integrations. Additionally, sustainable building practices and urban infrastructure improvements are enhancing property values. The evolving preferences of Kenyans, particularly the shift towards apartments and the impact of remote work, underscore the dynamic nature of the market. With these trends, 2024 presents an opportune moment for property acquisitions, promising substantial returns for investors and homeowners alike.
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