Real estate is faced with issues that are pulling it back from achieving tremendous economic blow. This is nothing new since every other industry has its shortfalls and real estate is definitely not exempted. These key issues in real estate Kenya include;
Affordability.
This is a crucial factor in the property world. It would be expected that real estate would be at disposal for everyone since housing is a basic need but on the contrary, it’s expensive for all income brackets. An increase in interest rates is a contribution to the absurd property prices in Kenya. Unfortunately, it’s not going to get any better since investors are buying more trucks of land in order to resell at high costs in the future.
Title deed scams.
Getting title deeds on land purchased in Kenya is a matter of luck. Demolishing houses, schools and churches are common incidences witnessed because they are built on public land. Our courtrooms, on the other hand, are to the full with cases of land grabbing, scrambling, and land conflicts. These are as a result of title deed issues.
Shortage of skilled labor.
Getting enrolled in universities to pursue courses that will land us white-collar jobs is the road that every Kenyan youth is taking. This leaves jobs like building, construction, plumbing, and design in the real estate sector with limited skilled labor.
Infrastructure.
Key issues affecting real estate Kenya.
Real estate is dependant on good infrastructure. When we meet potential property clients, their major concerns are usually based on the water and sewer systems, power grid as well as roads and bridges. The current state of infrastructure cannot sustain the rise in housing demand. Therefore, there is a need for the government to improve and expand infrastructure.
Political uncertainties.
The government employs unpredictable tax reforms in commercial sectors and it turns out that real estate is one of the highly taxed sector. The government policies set on real estate are also quite strict and it’s a limitation to the property investment sector.
Climate changes.
Weather and climate are unpredictable and they play a key role in determining the future of the real estate sector. You must have seen people who want to live in Mombasa because it’s hot while others would opt for Nairobi because it’s cool. So imagine a scenario where the climate in these regions changes, it would negatively affect the demand for property there.
TOP TEN ISSUES AFFECTING REAL ESTATE BY MARTIN COMMERCIALS.
In conclusion,
Real estate is a fast-growing profitable sector in Kenya but these issues could cause stunted growth. Some of these issues can be managed with time but there are those that real estate will have to conform to.
Despite these issues, KENYA HOMES will continue to offer you sophisticated advice and high -level solutions to your real estate concerns.