This is inarguably the best time to buy a house in Kenya. The major reason is that prices are ridiculously low due to a myriad of factors. These include a slow economy, war on corruption, an increase in real estate scammers and recall of loans by banks. Buying a house benefits you and your family a great deal. In addition, the psychological satisfaction that comes from it is unmatched. Further, being in a position to not pay rent, or collect rent is most times a delight. As such, make sure you take your time and study the property available in the market now and become a homeowner.
Slow Economic Growth in Kenya
Every market analyst notes that economic headwinds in 2017 adversely impacted both the macro and micro-economic sectors of the economy. Kenyan citizens, therefore, face a tough decision now between investing in property or more pressing needs like food. Likewise, the property market has slowed down over the years. For this reason, sellers are willing to sell their property, both land and houses at a lower price. This makes it easier for aspiring property owners to make a
War on Corruption in Kenya
Corrupt individuals were willing to pay way more than the actual value of property. This was viewed as a form of money laundering to many. Besides, when politicians obtain huge sums of money in unscrupulous ways, they channel it into real estate. If they don’t do it themselves, they do it through proxies. This made it very difficult for Kenyans to purchase houses and land due to high
However, tighter measures are being enforced in the property market due to the war on corruption. Consequently, individuals have to explain exactly where they earned money to acquire any property. Even further, the EACC focuses and investigates property owned by the accused first. This has affected the real estate industry and has caused prices to fall. This has made it possible for the citizenry to buy a
Increase in Number of Real Estate Scammers
Over the last few months, we have constantly woken up to news of real estate scams. Thus, Kenyans shied away from buying property off plan. Those who do address it with keener eyes because they do thorough research. Notwithstanding, Real estate frauds are not only limited to off plan housing. There are many con artists in the market. Naushad Merali, Sameer Africa Chairman, fell victim to this. He received a call from a “President Uhuru Kenyatta” who was selling a prime piece of land in Nairobi’s Milimani suburb. Such cases have made aspiring property owners wary of the market. Property sellers have thus reduced prices to attract buyers.
An overabundance of Price-Inflated Houses
There is a very high number of overpriced property in the market currently. On the one hand, some homeowners simply want to sell. Similarly, developers with prime units in the market want to make a sale. Sellers, therefore, compete by lowering their prices to appeal to the buyer. This results in a reduction in price. Right now, Nairobi has an over-supply of shopping malls. This is because corrupt politicians have been setting up malls left, right and center in a bid to launder money. With these low prices, it has become very easy to acquire the property of your dreams.
Banks Recalling Loans taken to buy a House
Slow economic growth has adversely affected the property market. Persons who took a loan to purchase a house have found it difficult to service these loans. For example, someone may have taken a Kes 30M loan to buy a house, but due to unfavorable market conditions, the property value declines. The result is that he will sell the property at a throw-away-price to fulfill his obligations to the bank. Thus, the willing buyer that is ready ought to make the purchase immediately. This is why this is the best time to buy a house or land. Such is the reason why Listed real estate developer-cum-lender HF Group Monday announced a 30 percent discount on 700 houses.