Kenya’s real estate sector is ever-growing and offers plenty of opportunities for both local and foreign investors. If you’re thinking of investing in real estate, there are various factors you should consider before taking the leap.
Here are five factors to think about when investing in Kenya’s real estate market. They will help increase your chances of success.
Location
Location is one of the most important considerations when investing in real estate in Kenya. The best locations are usually close to major highways or with close proximity to the city. They are preferred by people with business, leisure, and travel needs.
A neighbourhood that’s too far from the city or highway will be a less desirable location for those who want to spend a lot of time in urban areas. It is not only important where the property is located but also how accessible it is.
Type of the property
The type of property to invest in is also another thing to consider while investing in real estate. Property types can include residential, commercial, industrial, and retail. Your investment should be guided by your needs. Do you need a high-rise apartment or would a suburban home be better? All of these questions should be answered before deciding on which property to invest in.
Value of the property
The value of any real estate property will depend on various factors including location, type of property, and its condition. For example, a residential plot may be worth less than an apartment block or office space. A good starting point for estimating the value of any property would be its price per square metre (PSM). You could then calculate how much it would cost you to purchase that area. Alternatively, you can search online for average house prices in the area.
Property size
As you are thinking of investing in real estate, the size of the property is an important consideration. Larger properties cost more than smaller ones and can also be more difficult to maintain.
Property management
Real estate investment is a long-term investment with unpredictable returns. It requires you to manage it and make sure it is being taken care of well. You can either manage the property yourself or employ one of the various property management companies in Kenya to manage it for you.
Managing the property yourself means you will be acting as a landlord and directly engaging with your tenants. Hiring a property management company can make your work easier but at a cost.