Browsing: Investing in Kenya’s real estate

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.…

Centum Investment Company subsidiary Vipingo Development Limited (VDL) has handed over keys to more than 300 home buyers to their houses, following the completion of Phase 1 of the Palm Ridge Estate in Kilifi County, in the Kenyan coast.

In a statement, Vipingo Development Limited says the Sh1.5 billion housing estate comprises 330 units of one, two and three-bedroom four-storey apartments priced at Sh2.5 million, Sh3.5 million and Sh4.6 million respectively.

It marks the second major residential estate development by the company, and increases to about 400, the number of home owners within the 10,000-acre master-planned development that has a residential, commercial, school and industrial districts.

“We’re consolidating our reputation as a developer that completes projects on time, on budget and to the highest quality standards and that is why investors increasingly trust us with their money,” said the VDL managing director, Ken Mbae.

The project, dubbed 1255 Palm Ridge …