Investors urged to prioritise affordable housing
Keza housing project in Riruta, Nairobi.
What you need to know:
- Housing deficit in Kenya currently stands at an estimated 80 per cent.
- Keza project is an affordable housing project coming up in Nairobi’s Riruta area.
Investors looking to expand their real estate portfolios have been urged to consider investing in affordable housing developments, whose demand is on the rise, making a return on investment guaranteed.
According to Mi Vida Homes CEO, Samuel Kariuki, investing in affordable housing developments will not only provide a steady stream of income in the form of rental payments, but will also help to bridge the housing deficit in Kenya, which currently stands at an estimated 80 per cent.
“The affordable housing segment is proving a popular source for investors seeking regular rental income. As the demand for affordable housing continues to grow, so too does the demand for rental properties, making this a promising investment opportunity,” Mr Kariuki said.
Affordable housing
Mr Kariuki spoke during the launch of Keza project, an affordable housing project that is coming up in Riruta area of Nairobi County. The Keza project will have a mix of studio, one-bedroom and two-bedroom apartments.
“The best segment today is the affordable housing space because it enables you to have an annuity income as an investor. Rental income also allows for inflation adjustment which additionally makes this investment attractive unlike other investments whose proceeds are fixed and are therefore vulnerable to the eroding effects of inflation,” Mr Kariuki said.
Market for investors
In November 2022, Mi Vida Homes launched a project dubbed 237 at Garden City comprising of one-bedroom units and studio apartments. Already, 75 per cent of the studio apartments have been sold.
The sales have been achieved before the April 2023 ground-breaking date. The management said there is a growing and big market for investors targeting short-term stays.
Mi Vida launched the 237 project, and has so far seen a huge demand for the studio and one-bedroom units for this project. All one-bedroom units in the first phase have been sold to investors looking to capitalise on the growing trend of short-term rentals, such as Airbnbs.
