Listed real estate developer-cum-lender HF Group Monday announced a 30 percent discount on 700 houses. The move reflects the tough going in the market. HF Group said investors have two months to buy the properties located in 11 HF projects. Eight projects are completed and three nearing completion. All the houses on offer are located in Nairobi.
Shika Nyumba na HF campaign
Group Chief Executive Officer Robert Kibaara said the ‘Shika Nyumba na HF’ campaign will run between March 4 to May 31, 2019. To add to that, it will see the group offer for sale its own units. Besides, properties belonging to other real estate developers funded by the home loans firm will also be on sale.
“The Shika Nyumba” promotion makes existing properties more affordable for local and diaspora buyers. It is an opportunity for cash buyers. Similarly, those seeking to take a mortgage funded by HF can also afford. However, those with existing contracts will not benefit.
Tough economy
The property market has slowed down especially after the 2017 General Election, coupled with a prolonged drought. As such, inflation hit a high of 8.07 percent. Last year it witnessed a slow return to normalcy with inflation dropping to 4.7 percent. The tough economy saw Kenyans shun buying houses to concentrate on funding essential items. For example, purchase of food, transport and paying school fees. For this reason, they were left with little to spare.
The situation was worsened by the introduction of interest rate caps. Consequently, lenders deemed lending to individuals risky. Not only that but also, they dumped long-term lending. The caps tie both long and short-term loans to the bi-monthly Central Bank rate. Properties on offer include Komarock Heights Apartments, Kahawa Downs Apartments in Kahawa Sukari, Evergreen Valley maisonettes and apartments in Utawala. Also, Koibatek Apartments, Sigona Heights Maisonettes, Woodley Springs Apartments
Ongoing Developments
HF’s ongoing developments include Richland Pointe. This has 248 Apartments. Another one is Precious Gardens Phase II (152 apartments). It is set for completion in September 2019. Finally, 80-unit Clay City Phase IA expected to be ready by January 2020. A sample of HF Group offers on a 30 percent discount include:
- Komarock Heights Apartments. Starting price: Kes 5.85M-Kes 6.8M. Off 30 percent: Kes 4.095MSh4.76m
- Kahawa Downs Apartments. Starting price: Kes 6.7M-Kes 8.2M. Off 30 percent: Kes 4.79M-Sh5.74M
- Evergreen Valley Maisonettes, Utawala. Starting price: Kes 4.5M-Kes 6.5M. Off 30 percent. Kes 3.15M-Kes 4.55M
- Koibatek Apartments. Starting price: Kes 16.5M-Kes 25M. Off 30 percent: Kes11.55M-Kes17.5M
- Sigona Heights Maisonettes. Starting price: Kes11.5M. Off 30 percent: Kes 8.05M
- Woodley Springs Apartments. Starting price Kes 15M. Off 30 percent Kes 10.5M
- Warira Court. Starting price Kes 5.75M. Off 30 percent: Kes 4.025M
- Richland Pointe. Starting price Kes 8.5M. Off 30 percent Kes 5.95M
- Precious Gardens Phase 2. Starting price Kes 9.5M. Off 30 percent Kes 6.65M
- Clay City Phase 1A. Starting Price Kes 9M. Off 30 percent Kes 6.3M
