Nairobi Metropolitan Residential Report 2017

According to Cytonn Research, the real estate sector in Kenya is expected to continue growing on the back of sustained GDP growth, high returns over the last 5 years and government incentives to boost real estate investment especially in the residential sector.

  • The real estate and construction sector contributed to 13.8% of Kenya’s GDP in 2016 and has
    been improving from 12.6% recorded in 2010. This is according to the KNBS Economic Survey
    2017.
  • A relatively stable political environment, as well as favourable macroeconomic conditions leading
    to sustained GDP Growth and a stable exchange rate have led to positive development in the
    sector.
  •  Real estate has consistently out performed other asset classes in the last 5-years, generating
    returns of over 25% p.a., compared to an average of 10% p.a. in the traditional asset classes.
  • Residential units in Kenya in the last five years have generated an average rental yield of 5.0%,
    while office and retail space have generated average yields of 9.0% p.a and 10.0% p.a,
    respectively.
  •  Government initiatives such as digitising of the lands ministry, issuing of title deeds, waiving of
    the NCA, NEMA and title searching fees as well as a 15% tax cut for large scale developers are
    creating a conducive investment climate for real estate investment and lowering construction
    costs.

Read more in the 2017 Nairobi Metropolitan Residential Report

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