The dream of homeownership in Kenya’s satellite towns has been hindered by high housing prices, leaving many aspiring homeowners struggling to afford a property. However, there has been a noticeable shift in market trends, with increased interest in the middle-class segment where houses are priced between 10 to 20 million Kenyan Shillings. This market segment benefits from access to mortgage financing, making property ownership more attainable. On the other hand, the low-class market, with homes priced between 2 to 9 million Kenyan Shillings, has experienced minimal activity in recent months.

To address the affordability challenge, innovative approaches have emerged, such as a new model that involves partnering with financial institutions. This model simplifies property ownership by acquiring land and subdividing it into affordable portions for interested buyers. By incorporating financial institutions, access to credit facilities becomes easier, providing a solution for those who cannot afford the high land prices prevalent in satellite town areas.

While the middle-upper market, with properties priced between 20 to 50 million Kenyan Shillings, has been moderately inactive, the high-end market has seen increased inquiries from cash buyers. Many of these prospective buyers are already homeowners who view real estate as an attractive alternative investment option. The growth of the real estate sector is considered promising, not only in terms of investment opportunities but also for its potential to contribute to the overall economic development of the country.

The ongoing COVID-19 pandemic has had implications for rental income, as downsizing becomes more common among middle-class tenants. This shift presents an opportunity for individuals to reduce their expenses and save more. Income disparities are evident, with a significant percentage of workers in Kenya earning less than 50,000 Kenyan Shillings. However, individuals who understand the risks associated with investing during the pandemic have diversified their investment portfolios, exploring opportunities in real estate, fixed income markets, stocks, and government bonds.

Although wealth inequality remains a challenge, the real estate sector offers hope for addressing this issue by providing opportunities for investment and property ownership. In a country where a small percentage of the population owns a significant portion of the wealth, the expansion of the real estate sector opens doors for more individuals to participate and potentially bridge the inequality gap. As more opportunities arise within the real estate sector, it offers hope to those who aspire to invest or own property, contributing to a more inclusive and equitable future.