Browsing: Affordable houses

After years of falling behind equities and fixed income in terms of the rewards they offered to investors, real estate has once again returned to the top end of returns offered by asset classes in the country, thanks to a price appreciation of 10.5% and an appreciation of 2.4% in rental yields over the same period.

Investors in government securities, which account for the vast majority of fixed income assets in the country, have been offered interest rates ranging from 7.2% to 14% across the spectrum of tenors, even though the All Share Index on the Nairobi Securities Exchange (NSE) has decreased by 16% so far this year.

“The net result of the rising rents and property values is an increase in overall property returns of 16.26% annually. These returns outperform other asset groups and provide safer inflation hedges,” added Ms Hassanali.…

The construction sector has more promise including in the retail sector despite the fact that many malls are either under-occupied or have no tenants.

With the online market space gaining popularity, what cannot be seen in the malls can instead be stored in the same buildings if adapted to become warehouses.…