Location of any property is a crucial factor that determines the price of land to investors both now and in future. Land being a physical and long term asset, investors prefer properties with close proximity to main roads, transport linkages, upcoming highways, areas with high population growth and important land marks. The combination of all these factors positively influence the appreciation of land driving demand for real estate investment.
Username Investment Ltd. conducts extensive research to identify areas that have high potential for growth based on the various plans set by government and other bodies. Below are some of the areas experiencing high demand for property investment.
1. Ngong – Ngong was the best performing satellite town in 2018 attributed to the ongoing infrastructural developments in the area such as expansion of Ngong Road, the Southern Bypass, and Ngong-Kimuka SGR Station. Construction of the Ngong-Kimuka-Suswa road that was commissioned by the Deputy President of Kenya is ongoing and has a working timeline of 24 months. Completion of this road is expected to ease transportation and open up the area for real estate development.
2. Nakuru – Nakuru is the fastest growing town in East and Central Africa according to the United Nations. The Cabinet has also approved the Elevation of Nakuru to city status. The county enjoys a rich agricultural wealth that has seen land prices rise by 9.46 percent according to Nakuru County Land Prices Report. Preparations are ongoing at Lanet airstrip in Nakuru for an upgrade to an international airport. The 1.7 kilometres long and nearly 20 metres wide airstrip will be converted and expanded to accommodate large cargo planes transporting horticultural and floricultural products.
3. Konza – Konza Techno City is a national flagship project under Vision 2030, Kenya’s economic development blueprint that seeks to propel the country to middle-income status by 2030. Recently South Korea committed Ksh. 10 billion to set up Kenya’s first graduates only Information Technology University at Konza Technopolis which is set to be open in 2021. This is expected to fast track the development of Konza. The proposed Ksh. 300 billion Mombasa- Nairobi Expressway will bypass the capital city to branch off just past Konza and terminate onto the Nakuru- Nairobi highway in Kikuyu. The construction is set to begin in June. All these infrastructural projects are positively influencing the prices of land in Konza area and investors are already investing here.
4. Naivasha – The Extension of Phase 2A of the Standard Gauge Railway (SGR) which is 120km from Nairobi to Naivasha has entered the final stages with a projected completion date of August this year. This progress comes when the value of land continues to increase in Naivasha where the proposed Mega Industrial Park to be served by the railway will be located. On completion, Naivasha will get more domestic and foreign tourists meaning more business for the tourist resorts, the spas and hotels presenting a unique investment opportunity for both local and international investors.
5. Athi River – the area has witnessed improved infrastructure ranging from expansion of Mombasa Road, construction of the Athi River interchange and construction of the Standard Gauge Railway (SGR) and Athi River Super Bridge which has eased access to the town. The area hosts several companies making it ideal for every investor who wishes to put up commercial, residential houses for employees in the factories or a business premise to cater for these population.
6. Kangundo Road – The anticipated construction of the greater Eastern bypass in the neighbourhood is gradually opening up the area and driving demand for real estate. The completion of dualling of the Outering road has also helped ease traffic between the city centre and Kangundo Road, adding to convenient access as well as the attractiveness of the area. From 2012 to 2017, Machakos County’s land prices have risen by an average of 8.54 per cent a year according to County Land Report. Its proximity to Nairobi, has positioned it as a lower cost alternative for investors especially young professionals.
7. Kamulu – Kamulu is a town located along Kangundo Road on the east side of Jomo Kenyatta International Airport. The area has a range of developments in form of Hotels, schools and markets. The prices of land here are appreciating due to proximity to the city, infrastructural developments such as the Eastern by pass which directs a lot of traffic by linking Mombasa Road and Thika Road. The hospitality industry is also growing as a result of these developments thus driving demand for investment.
8. Juja – Juja is another preferred area to invest with an annual basis of appreciation of land by 51 per cent. The appreciation is due to factors such as Thika Super Highway, a number of colleges and universities located here, and readily available market for various industrial goods. This continues to attract real estate investment in this area.
9. Ruiru –The area has continued to attract real estate investment supported by good transport links, which provide easy access to key business nodes such as Mombasa Road, Thika Road and the Nairobi CBD. This growth is expected to improve further with the planned Mass Rapid Transit System, a vibrant economy especially of agro-based and industrial businesses which creates demand for dwelling units from the workers of these companies and positive demographic profile.
10. Kiambu – According to 2018 Land Index, Kiambu County recorded an appreciation in land values growing by 98.73 percent over the last five years. The growth of this satellite town is attributed to the construction of the Northern Bypass road that has steered the growth of the town into having a large urban population. The easy access continues to attract investors both in residential and commercial properties.
By Reuben Kimani, CEO, Username Investment Ltd.
For more details visit www.usernameproperties.com
Source link : https://www.africa.com/top-10-areas-in-kenya-where-demand-for-property-remains-high/
Author : ADC Editor
Publish date : 2019-04-25 12:28:37