Kenya: Unity Homes completes 10% of $44.5 million housing project

0
  • Unity Homes has completed 10.0 per cent of its KSh 5.4 billion housing project dubbed Unity East
  • Unity East sits on a 10.4-acre piece of land at Tatu City in Ruiru Sub-County and constitutes 64 units of the total 640 houses whose construction began in November 2021 
  • Unity Homes said it would deliver the project in batches, with the last batch of units expected to be delivered by September 2024

Kenyan property company Unity Homes has completed 10.0 per cent of its KSh 5.4 billion housing project dubbed Unity East.

The property, which sits on a 10.4-acre piece of land at Tatu City in Ruiru Sub-County, constitutes 64 units of the total 640 houses whose construction began in November 2021 as the project’s second phase.

Unity Homes said it would deliver the project in batches, with the last batch of units expected to be delivered by September 2024.

Other projects by the developer include Unity West, which was completed in November 2021, Unity Gardens completed in 2018, and, Silver Hill, which was launched in October 2022.

In terms of performance, Ruiru apartments recorded an average selling price of KSh 89,418 per SQM in Q3’2022.

Notably, the average price per SQM for apartments at Unity East is KSh 103,012, which is higher than Ruiru’s market average owing to their high quality and prime location within Tatu City.

On the other hand, the high occupancies and uptakes realized in Ruiru position the development viable as the developer is expected to gain higher returns.

Upon completion, the project is expected to help curb Kenya’s accumulated housing deficit, which stands at 2.0 million housing units, translating to 200,000 units annually.

Additionally, the initiative will provide decent homes to citizens and improve homeownership rates in the country, which have remained significantly low at 21.3 per cent in urban areas as of 2020, compared to other African countries like South Africa and Ghana with 53 per cent and 47.2 per cent urban home ownership rates, respectively.

House under construction. Photo: Unsplash.

In a related story, Kenyan real estate companies Heri Homes and Finsco Africa recently broke ground to begin the construction of US$176 million homes in Kiambu County.

Finsco Africa CEO John Mwaura said the project, dubbed Legacy ridges, would see an extra 4,000 homes added into the real estate sector that continues to struggle to meet demand. The project is on a 200-acre land in Ruiru, opposite Tatu City off the Thika Superhighway.

Of the houses, 2,800 would be two and three-bedroom apartments, while the rest will be maisonettes, including servant quarters.

According to the CEO, the three-bedroom maisonettes and bungalows would include a lounge, dining area and a kitchen. They would also have inbuilt wardrobes, a yard, a three-bedroom master ensuite and car parking.

The four-bedroom maisonettes include the same features, plus an additional bedroom.

Mwaura, who also doubles as the Legacy Ridges CEO, said the three-bedroom maisonettes are retailing at $74,818 while the introductory fee of the four-bedroom is $85,380.

The CEO said the companies were committed to delivering modern, two- and three-bedroom apartments that fit into the government’s affordable housing plan.

The apartments include a lounge, a kitchen, a balcony and ensuite bedrooms, and a car park.

Kenya: Heri Homes, Finsco Africa begin construction of $176 million housing project

The two-bedroom apartments, which measure 60 square metres, retail at $30,800. The three-bedroom apartments measure 75 square metres and sell at $37,848.

“We expect to house over 20,000 people on this project,” Mwaura said.

Overall, Nairobi, the Kenyan Capital, has seen House prices rise this year.

Investors owning property in and its environs have seen the highest property price surge in 11 years based on revived demand from buyers who had slowed down their buying during the most challenging period of the Covid-19 economy.

Data from realtor HassConsult show the price of an average house within the city grew 10.5 per cent in the year to June compared to a reduction of 1.7 per cent in the same time a year earlier.

This is the fastest growth seen in the property market since 2011 when the change was at 15.7 per cent and reflected the rebound of the property market from the consequences of the Covid-19 outbreak.

The rise in the price of construction materials like cement, steel, and paint has increased the amount of upward pressure on housing prices.

Standalone residences in Langata, Spring Valley, and Westlands saw the sharpest price gains during the period that saw Ongata Rongai and Ngong have the most significant growth among satellite towns outside of the capital.

The reason for the growth in house prices in Langata is that the area is still relatively affordable compared to other metropolitan suburbs, where houses are offered at a premium.

Kenya: House prices rise at fastest rate in 11 years

Wanjiku Njuguna is a Kenyan-based business reporter with experience of more than eight years.

Leave A Reply