Value for money currently on offer has seen an uptick in activity in the luxury residential property market in Kenya’s capital city of Nairobi, says Pam Golding Properties Kenya MD Kunaal Samani.
“The residential property market has proven fairly resilient despite the impact of Covid-19 and the lockdown restrictions,” says Samani. “Since February 2020 we have been busier than ever, which is a good indication that market confidence is at an all-time high, contrary to what one would expect amidst a pandemic.
Price corrections
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We have definitely seen an increase in sales of high-value residential properties in the past year due to the greater margins of price corrections in this segment,
which have on average adjusted some 20-30% down from peak prices, which both sellers and buyers are capitalising on in order to successfully conclude transactions. Given that our fluctuating currency isn’t holding up too well against the US Dollar, the value in real estate is very appealing." (1US$ = approximately 107.61Kenya Shillings at the time of going to press.)
“With a strong ongoing demand for homes in the upper end of the market, stock is always scarce as the supply tries to catch-up – especially in regard to new homes which have to contend with bottlenecks that include building approvals, zoning restrictions and lack of proper infrastructure – especially access to the sewer and road network.”
Shaif Sharif, head of sales at Pam Golding Properties Kenya says the current market-related prices on offer have certainly enticed buyers in this category and price segment, which in this upper end ranges from 50 million Kenya Shillings (Kes) up to 250 million Kes. “Supply is always low in this sector of the market, so there is strong demand for the properties that are available, provided the prices are attractive and compelling enough to nudge the buyer to commit to the purchase.
“Buyers at the top end of the residential property market are mostly local business people purchasing mainly primary residences, with some acquiring homes as an investment for rental income as well as long-term capital appreciation. Generally speaking, they seek four to five-bedroom houses on a minimum of half an acre, modern and well-finished or, if older homes, well maintained and with attractive, mature gardens. They also look for areas close to schools, religious centres and entertainment hubs, with good security and easy access to the road network, commercial nodes and free open spaces.”
“Areas sought after due to their status, excellent security, established amenities and prestigious location include Muthaiga, Runda, Kitisuru, Spring Valley, Loresho, Lower Kabete and what we consider the new and up and coming ‘Muthaiga of the South’ – Karen. For the middle class, and more in the mid-range price band from 20-35 million Kes, the suburbs of Lavington, Westlands, Parklands and Kileleshwa are most in demand due to their proximity to the commercial districts, good established schools and social amenities.”
Writer : Gaye de Villiers
