Nairobi Metropolitan Mortgage and Rental Affordability Report 2017

According to Cytonn Research, recent developments in the residential market in Kenya include:

  • Government Incentives to Boost Development: The government has given incentives to boost residential
    development including the reduction of corporate tax to 15% to firms that develop at least 100 housing units annually.
    In addition, the government has scrapped the land title search fees, NCA and NEMA levies in an effort to reduce
    development costs. This is likely to enable more developers including saccos and housing cooperatives provide more
    affordable housing
  • Automation of Land Registries: Lands Ministry has embarked on automation of land records aiming to improve the
    ease of doing business through efficiency, reducing corruption and eliminating cases of missing files. Registries in
    areas such as Mombasa, Nakuru, Kisumu, Kiambu and Nairobi were digitised in 2016. This will ease housing
    development through a more efficient and transparent land transfer process
  • Rise of Masterplanned Cities: Mater planned communities and cities have picked up in the recent times, and offer
    a live, work, play environment in a controlled nature. New master planned cities include Northlands and Cytonn’s
    Newtown in Athi River and RiverRun Estates in Ruiru
  • Alternative Building Technology: Although nascent it is starting to gain momentum as they save time in
    construction and hence have a possibility of reducing financing costs, which will benefit the end consumer as they will
    pay lower amounts for their residential units
  • Increased Foreign Participation: The real estate market in Kenya is increasingly being exposed to international
    developers and financiers. They include AFDB, Taaleri, Islamic Development corporation, China Africa Development
    Fund which are focusing on reducing the housing deficit in Kenya

Read more in the 2017 Nairobi Metropolitan Mortgage and Rental Affordability Report 

Loading...