Browsing: Kenya’s real estate sector

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.…

Kenya’s construction industry is projected to grow by up to 3.9 percent this year, according to a new report by the Architectural Association of Kenya (AAK).

The report, dubbed Status of the Built Environment report, AAK however cautions that the growth can only happen if there is no repeat of the strict lock down that were implemented in the country last year after the emergence of the coronavirus pandemic.

The report says growth will be driven by several factors among them a sharp recovery in output levels compared to periods when works were not permitted or were severely restricted in 2020.

“In 2021, the construction industry is expected to improve, assuming a slowdown in COVID-19 cases and recovery in the global economy,” the report notes.

Kenya to start construction of double decker highway as World Bank consents to funding

The report notes that the second quarter of the year, for …