In Kenya, the real estate industry has been showing some positive results as the land value in different parts of the country experienced enormous growth. The land value within the locality of some of the key interests of home and land buyers has grown approximately by 10% in the past 10 years. This is all thanks to the spike in land demand in those areas. Athi River, Kangundo Road, and Kitengela are some of these locations that have shown a constant increase in land value in the last decade.
Still, wondering whether it’s the right time to invest in real estate?
It’s the 21 century and people are now appreciating modern lifestyles. In the past, cities and urban centres were known as areas bound for businesses or trading centres. Gone are the days when one used to build homes in their ancestral land, as traditions dictated. This would opt them to live in rental properties that were available near the city and their working areas. Civilization has led to people leaving the norm and building their homes away from their rural areas. Building residential houses near the city is the new trend, allowing them to wake up and go to work from their homes, not rental properties. Do you know what that means? There’s a chance for investment in my country’s people. You could either choose to buy land to sell to those who are interested in building their own homes or build a property on the land and sell it to prospects.
The government of Uhuru Kenyatta has been on the frontline of supporting affordable housing as per the Big four agenda. The government will partner with some of the private real estate companies, compensate them and then hand over the houses to the government. One of the benefits that will come with these partnerships is a relief from tax when buying land. The government will register these individuals under a tax credit equivalent to the least tax payable, subject to Ksh 9000 per month. This means that you can save the same equivalent of nine thousand Kenyan shillings per month of the year towards buying tax-free land. Note that any amount above Ksh 9000 is taxed. With this, almost every bank in Kenya provides this type of saving plan.
Initially, the government of Kenya expected 200,000 to be built annually to achieve its affordable housing plan. Up to now, only 25% per cent of the houses have been able to be built per year. This means that most Kenyans are still paying their monthly dues to their landlords. Depending on how you view it, this is an opportunity to provide housing opportunities to these Kenyans. you can build a house and resell it at a higher but affordable rate to interested parties.
Reports show that the real estate market has stabilized, making 2020 a good year for the market. However, the outbreak of the COVID-19 pandemic may hold back many investors and buyers from taking part in the market as the future is unpredictable. According to Victoria, one of New York’s real estate agents, now is the right time to invest in the real estate market. contrary to what many people may think. She further adds that the availability of low rates during this pandemic will give buyers more power, as there are negotiation opportunities in the market, making a good deal at the end of the day. So, it might be a good year for the real estate market after all.