In Kenya, it has been a trend for real estate projects to be advertised for auction. This has raised many questions among Kenyans, most of them worried about the security of their investments in the real estate properties. How did we even nest ourselves into this trap in the first place?
If we are going to find the truth of the situation, we ought to be as honest as possible. The reality, the answer to our question, is right in front of us, only that we don’t want to believe. The economy of Kenya has been struggling, while the government is busy trying to depict a good state of the economy. People are suffering.
All the sectors in Kenya have experienced the pinch in the economy, real estate being among them. However, people still have high expectations for the industry to do better than any other. It’s sad to see the predicted real estate bubble become the immediate opposite, fueled by the recent economic tumble.
How do we expect the real estate industry to do well while all the wrongs seem to be thrown into the industry? We need recourse.
People have this idea that the real estate industry can hold to any idea that one has, despite how reckless it is. The truth is the real estate industry has its own rules which must be followed by its players, to get maximum returns.
One of the rules that should be understood by any person that intends to join the real estate inventors bucket is that; if you don’t understand the details of an investment opportunity enough to explain it, then you should never get involved in it. This is one of the rules mostly ignored, as people continue to jump into the investment influenced by hearsay. They make decisions unconsciously, not having an idea of what they are getting themselves into.
Yes, the beauty of huge real estate returns still exists in the market, but only to the vigilant; those who enter the market with great knowledge and respect to the rules of being a player and not gamblers. But we should also allow those players who are greedy for money with no respect to the rules to continue losing in the game.
In the past decade, most developers have been targeting the high-end areas for their projects. This market trend is now getting saturated as there is still a huge gap in the real estate market that needs to be settled. The middle-income population is increasing, creating a high deficit in the market for affordable housing. Developers should be looking into this issue, as the wise have already done their research and put action into it.
As many real estate companies have collapsed, many many will add to the list if the rules are continued to be ignored. But this does not mean the end of the industry. Those who are genuine and follow the rules will continue to grow in the market.