Demand for housing in Kenya remains flat in Q3
The housing market in Kenya is experiencing a significant oversupply that has resulted in flat prices during the third quarter of this year.
Even as the government puts in place mechanisms to supply over 500,000 units of affordable housing over the next four years as part of its Big 4 Agenda, developers targeting the middle and high-end market segments have seen subdued demand.
According to the Kenya Bankers Association (KBA) House Price Index, prices declined in the third quarter of 2018 by 0.41 per cent mainly due to lack of enthusiasm from home buyers, whose preferences have shifted from apartments to bungalows and maisonettes.
Buyer preference were skewed in terms of the type of houses and income groups, with maisonettes and bungalows being concentrated in the high-income bracket. Apartments had an almost equal distribution in both the upper and the lower and middle market ends.
The risk appetite of both developers and financiers is expected to increase when the government embarks on developing affordable houses targeting mainly the low-income market.
“The state of affairs in the market reflects subdued demand as investments in the housing market which have remained skewed towards the middle and high-income bracket,” said Jared Osoro, KBA research and policy director.
While the government’s housing agenda is anticipated to spur demand, the plan is already experiencing headwinds as developers shun the low-end property market due to its high risks, and lack of government guaranteed bank loans.
According to the KBA index, which tracks housing sector dynamics and price movements, the drivers of house prices in the third quarter remained unchanged from those of the previous three quarters, signalling consistency in home owner’s preference.
Some 38 per cent of buyers were opting for bungalows followed by apartments at 35 per cent and maisonettes at 27 per cent.
Unlike previous quarters, the size of the house as measured by the plinth area was insignificant.
However, other attributes relating to size such as the number of bathrooms, presence of a backyard and master ensuite continued to feature prominently in influencing house prices.
Marburg Virus Outbreak Kills Five People In Tanzania » Uzalendo News
President Ruto Responds To Raila’s Weekly Protests
Shock as kenyan diaspora man edward morema and wife murdered
Twenty-Three Kenyan Entrepreneurs to represent the country in the upcoming Forty Under 40 Africa Awards 2023 : TechMoran
Latest Mobile App Development Trends To Dominate In 2023 : TechMoran
Chevrolet Camaro will be dead officially after 2024 : TechMoran
Foreign Investors Assume Net Buying After A Series Of Selling
Marburg virus related to Ebola hits Tanzania, kills five people
The Standard – Breaking News, Kenya News, World News and Videos
E-commerce Startup ZUMI Closes Shop
Thai firefighters battle huge forest blaze that spread across two mountains
How Time Tracking App Increased The Productivity Of Your Employees
Sudan’s underfunded healthcare worsens dengue fever spread – Nairobi Times
Dear Entrepreneur, Here Are 7 Ways To Make Money While Sleeping
From Kirinyaga to Michigan in Pursuit of The American Dream
Shix Kapienga recounts terrible accident – Kenya Satellite News Network
“Took Me 13 Years”: Graduate Who Rides Boda Boda Builds Noiseless Generator that Doesn’t Use Fuel
Collaboration key to harnessing the full potential of 5G technology
Enforce measures to curb road crash deaths
Keep up anti-doping efforts | Nation
General News7 days ago
Tornadoes Kill 23 And Bring Devastation To Mississippi – Eagle News Feed – Nairobi Times
General News2 days ago
At Least Eight Dead In India Temple Collapse » Uzalendo News
Entertainment5 days ago
Azimio must train supporters on peaceful demos
General News2 days ago
Salva Kiir appoints defence minister, breaches peace deal – Nairobi Times
Politics7 days ago
KURA boss Kinoti joins President Ruto Nyanza Projects tour – Weekly Citizen
General News5 days ago
Waiyaki Way, Other Nairobi Roads Barricaded by Police During Raila Protests [FULL LIST]
General News6 days ago
Menengai heal from Kenya Cup heartache with thrashing of Zetech Oaks in Mwamba Cup opener – Capital Sports – Nairobi Times
Tech3 days ago
UAE’s fintech Qlub raises $25 million to grow its operations : TechMoran