Knight Frank launches its report on Kenya property:
- Following a period of unprecedented growth between 2010 and 2012 when annual price growth exceeded 30% per annum, Nairobi’s prime residential market has witnessed a price correction in recent years.
- However, the prime market is set to recover in the first half of 2018 as the current wave of political uncertainty draws to a close, ending a period of moderate price growth throughout 2016 and 2017.
- Transactional activity in sales is expected to pick up, with Nairobi and Mombasa seen to be attracting interest from local and international buyers.
- Currency movements over the two years to November 2017 has made it cheaper for foreign buyers, as purchasers acquiring prime residential properties priced at Sh100 million would have saved up to 8.2% through euro-denominated transactions, while dollar-denominated purchases were 1.4% cheaper.
- An oversupply of prime properties for rent is behind the weaker prime rental growth, which has given tenants more leverage to negotiate with landlords. But, it is projected that the market segment may be reaching its cyclical trough and is about to turn around
- Ben Woodhams, Managing Director at Knight Frank Kenya, said: “Kenya has a long-
standing reputation as a destination for holiday home ownership, and with the political turbulence behind us, we are forecasting an increase in such investments in line with a strong economic recovery in 2018. Among factors making Kenya an ideal investment destination include a projected 5.8% GDP growth rate in 2018, rapid urbanisation at 4.3% per annum versus a global average of 2.0%, an expanding middle class, and positive demographics such as high population growth at 2.6% annually against Sub-Saharan Africa’s average of 2.3%.”
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