by Dorothy Okhako Anangwe
April 2, 2024
Benefits, Buying Land, Did You Know, Joint Venture, Kenyan Real Estate, Real Estate
02 Mins

A Guide on How to Build a Sustainable Real Estate Portfolio

As we face the harsh reality of climate change and the numerous effects it is having on us, the question of what we each can do to contribute to a favourable outcome is one that still lingers. As a company, we are taking steps towards creating a real estate space that is profitable, resilient, and environmentally conscious.

Here is a guide on some key insights and strategies for creating a portfolio that not only thrives financially but also contributes to a sustainable landscape:

Embrace New Technologies

Maximizing the potential of technology is a crucial aspect of building a sustainable real estate portfolio. Embracing new technologies not only benefits the environment but also offers cost-effective solutions for investors. A prime example of this forward-thinking approach is evident in the construction of the Miran Residence in Ruaka, Kiambu County. Here, we are integrating formwork technology into the building process, facilitating faster, more sustainable, and cost-efficient construction practices.

Consider the Lifecycle of the Property

When investing, it is important to focus on the properties that provide long-term value for you as an investor. Buildings, like people, go through a life cycle from location selection to renovation. When investing in real estate, therefore, it is important to consider the construction methods, long-term cost, return on investment, and how sustainable the investment is as variables that will affect the value of the property over time. Bluebells Apartments Phase 1 in prime Syokimau, with its wastewater treatment, solar street lighting, and gypsum ceilings, is an example of a property that will have a long lifecycle proving a valuable investment.

Consider Community and Transit Planning

Building a sustainable real estate portfolio not only focuses on the building process but also critically the quality of life for homeowners or tenants. With this in mind, the importance of investing in properties with easy access in terms of transit and amenities will greatly benefit you as a property owner or investor, as they are more likely to attract tenants meaning cash flow and better resale value. The Miran Residence in Ruaka, a growing metropolitan area with easy access to roads and amenities, is an example of a property that is likely to experience value increase as the area continues to develop. Some of the reasons for the potential increase in property value are its proximity to shopping malls, restaurants, entertainment areas, and major hospitals.

Explore Government Incentives

With the Kenyan government’s 2023–2027 Environmental Strategic Plan which has a key focus on climate change adaptation and mitigation, incentives to encourage sustainable practices in real estate such as tax breaks and grants to projects that prioritize renewable energy are an important consideration for both developers and investors alike as you build your portfolio.

Are you convinced to invest in real estate? Safaricom Investment Co-operative offers you real estate properties worth investing in. Visit https://sic.co.ke/ to get in touch with your investment partner of choice.