A number of real estate investors in Kisii town have raised their concern on alleged hiking of land prizes by brokers.
According to them, the current market rates have been exaggerated due to increasing number of investors, particularly those interested in housing and construction.
Stephen Mwiruri says acquiring a plot in suburbs of the town has increased substantially from the initial figure of 400,000 in the year 2010 to the current 1.3 million, which is almost thrice the initial figure.
“They have increased the price to almost thrice the initial and this is worrying. They are taking us for granted and this is completely unacceptable,” said Mwiruri.
Mwiruri said the rapid population of the town due to mushrooming of institutions of higher learning is partly the reason why investors are interested in the real estate.
“We have decided to venture into this business due to increasing number of institutions in the town. The demand for houses has gone high and that is why we want to serve them. But this does not justify the current rates,” added Mwiruri.
According to Mwiruri, land selling business has been hijacked by cartels that purchase it at lower rates, before increasing the price and calls for the county government to intervene.
“Some brokers are acquiring these plots at cheap rates but end up coning us. This is unacceptable and the county government has to chip in,” he added.
Mwiruri’s claims were echoed by John Bett, a Lecturer of Economics in Kisii University, who associates the high prize with brokers whose aim is to defraud potential buyers.
“The exorbitant rates are as a result of brokers who are taking advantage of the situation,” he said.