If you want to invest in rental residential property or even for sale, this is where you ought to pay attention. The Kenya Bankers Association (KBA) has a Housing Price Index (HPI) which enables people with interests in residential property to monitor the price patterns. Usually, KBA announces this every quarter. The recent report was the fourth since it was launched.
According to the Housing index report for the second quarter (Q2) of 2015, prices for houses have nearly stagnated. This means that between April and June 2015, prices for houses grew by about 0.2%. A commentary by Cytonn Investments attributed this stabilization to the “wait and see attitude” by investors due to insecurity that affected the country earlier this year.
It has also become very clear that apartments are preferred to bungalows or maisonettes. Their prices are considered more affordable than those of the latter. This increasing demand has led to an increase in the prices of apartments. This is an observation that can inform your investment in apartment housing development targeting the middle-class segment of the Kenyan market.
Also, the trends show that there is an increasing preference for gated communities. According to KBA, gated community developments are attractive due to the shared amenities, convenience and security that they offer to residents. Now you know why every other billboard is advertising a gated community everywhere you turn.