Most prospective real estate entrepreneurs are always turned away by the huge capital needed to venture into the industry. With plots around Nairobi proving to be expensive, most real estate enthusiasts have given up on their dream to join the industry. It’s even worse when you add the
Costs that come with construction. In an industry that favours the moneyed, only the strongest are meant to survive.
However, this is soon bound to change following a new model that will enable investors to join the industry with as low as 10 million. The only qualification you will need is a unit of an apartment, then you can leave the rest under the developer to run it in the market.
In Kenya, apartments are known as homes to the owners. The new model is a game-changer as it allows you to invest through the unit with less physical efforts needed to run the investment. If you can afford a 1 to 3 bedroom apartment, then you can be able to start earning by surrendering the unit to your developer.
How does it work? Once you decide you want to invest through the unit, you will start earning as soon as the apartment is rented out. The developer or the operator will be managing the unit under an internationally recognised brand with which you will have a head-start in the industry. One of the advantages of using the recognised brand is you will not have to go through the hustle of marketing and position the investment on the market,
“You will be able to obtain your lease and title to the property but you will be tied to an international operator,” said Mr Nathan Luesby, the project consultant.
The project will be targeting the non-government organisations, embassy and multinational workers who stay in Kenya for a short period before heading back to their countries.
“This is an overlooked niche with a very high demand by clients who do not want long-term rentals or expensive hotels where they are billed per day,” Mr Luesby said. He also added that the new model could attract up to 80% of the residents in the apartments.
There are also plans to get a partnership with international operators who can run the investment and add brand premium once on board.
“We are hoping to get a deal and who knows maybe they will even charge more than our current prices, so it’s better to get one now,” he said.