4 Real estate ventures in Kenya
Investing in land and rental properties have been the most profitable and most lucrative investment plans. Real estate ventures in Kenya has created more millionaires than manufacturing and technology. As Will Rogers once coined out “Don’t wait and buy Land, Buy and wait”, the worst enemy to investment is speculation without action. As we all know that the best time to buy land or a rental property was five years ago. This is a true proposition since its only land investment that has an assurance of price boom in future.
Irrespective of the economic down-drums, the few who have fully ventured in the real estate in Kenya are reaping millions. Towns and cities are growing and the rural-urban migration is still on the exponential growth, investors are putting up more rental and commercial structures to accommodate this human traffic. Here is an eye opener of where you can invest that one million rather than opening a fixed deposit account.
Rather than buy a land/plot in the metropolitan to build your own home, what about considering to put up a rental/commercial building? Real estate options are diverse than you can imagine and present one of the most lucrative deals in Kenya. Taking Nairobi as our case study in this article, a town initially planned to accommodate a population of 250,000 people is now a home to 3,000,000 people. Nairobi city alone is facing a deficit of 2 million housing units. Overcrowding in the popular estates of Pipeline, Githurai, Kayole, and other residential places is a litmus gage of housing upheaval in the city. Rental investments give you an assurance of consistent monthly income that can be a long-term investment plan.
Have you heard that land brokers are the richest dudes who never appear on the Forbes list? This notion is true to some extent; land flipping is buying a piece of land and selling at a profit. This can take a short period of one month to hold the property for years and selling when the prices boom. Short holding is for the smart people, buying when the prices are not favorable and selling at inflated profits. If you do not have enough cash to develop your estate, just buy and wait to trade that land at a profit.
This is another brilliant idea that you should consider when choosing the real estate venture in Kenya. Over the last decade, innumerable land developing companies have sprouted up to have a bite. The process includes having an eye for a place that has the potential for growth, buying virgin lands and developing both commercial and residential properties. As William Penn Adair said that land investment is “finding out where people are going, and buying land before they get there”, and when they come, you’ll make exorbitant returns.
Real Estates Investments Trusts popularly coined as REITs are the newest real estate investment options in Kenya. Traded in the NSE, REITS refer to a collection of pooled investment options traded as a trust where members can generate profit from real estate at the end of the year. REITs are a breath of fresh air to the investors who don’t have enough capital to do the capital-intensive land development. Here, the trust will invest in offices, commercial apartments, warehouses, hotels, and shopping malls and distribute the profits to the members of the trust at the end of the years proportionately. Income REITs (I-REITs), Development REITs (D-REIT), and Islamic REITs are some of the available options in Kenya and regulated by CMA (Capital Market Authority).
With all these available options at hand, there is no excuse as to why you should not consider investing in real estate. Although developing and improving a bare land to a higher level of productivity is labor and capital intensive, more options are there to help. Affordable housing is one of president Kenyatta’s Big Four agenda but the government alone cannot break the ground even. The real estate market in Kenya is exponentially growing and there are more opportunities than ever before.