Kenya's real estate market is set to bounce back in 2018.
According to the East Africa Property Investment (EAPI) Summit’s managing director Kfir Rusin, the resuscitation of the property sector will be driven by President Kenyatta’s multi-million shilling affordable homes programme.
The projected gross domestic product (GDP) growth rate of 5.8 per cent by the World Bank in January certainly aids to the increased investor confidence and appetite in the market.
Over the past several years, the East’s property markets, Kenya in particular, have become a lightning rod for investment as both local and foreign investors have looked to diversify their investments across multiple market segments from retail, industrial, housing and office space have been attractive investments.
While the market was pummelled by political uncertainty resulting in a six-year low with numerous investors and developers employing a ‘wait and see’ approach which led to an 18.4 per cent reduction in approved new buildings in 2017 compared to 2016, said the Kenyan National Bureau of Statistics.
From a retail perspective, the demise of Nakumatt shook the market; however, the big box retail space remains healthy with numerous international retailers increasing their investment with the likes of Carrefour, Shoprite and Massmart increasing their investment and the vacated retail boxes left by Nakumatt becoming hotly contested assets, said Broll’s Research team.
Since its establishment, EAPI has grown to become the premier and largest real estate investment and development focussed conference in the region.
“Kenya is once again at the top of investors and developers lists of attractive investment destinations. We’re hearing a lot of positive news from our stakeholders, and we expect some eye-catching announcements at EAPI in April.”