Wednesday, March 28, 2007

Investors' loss is tenants' gain as Kenyan property cools

The high-end real-estate market boom in Kenya may not be sustainable but it has a significant and beneficial effect on the lower (rent) end of the market. As the real-estate market in Kenya started humming over 4 years ago many wondered what was fueling the boom and how long it would last. Several factors have been at play, including the high demand for housing fueled by the surge in resources from diaspora Kenyans and global liquidity. Even then the market has been biased towards residential properties; specifically high cost apartment blocks to such an extent that it has not only over-supplied, but also overshot potential consumption in that segment.

Peter Ndiangui's take on Kenya's real estate industry.