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Factors that Influence Real Estate Property Prices in Kenya

Factors that Influence Real Estate Property Prices in Kenya

In Kenya, just as in many other societies, real estate investments are essential for wealth creation. Ownership of real estate properties brings a sense of social and political power which are mostly determined by the size of the property under one’s custody. As you search for property, you will notice that they tend to vary in price and at times the same type and size of house may be valued differently.

Below are some factors that influence the pricing of properties in Kenya:

Free photo wooden house blocks; stack of coins; keys and small shopping cart on concrete backdrop

Location

Today’s real estate investors are looking for homes that offer convenience and accessibility in addition to comfort and security. The location of a property significantly influences its value and desirability.

Free photo delimitation of land plots concept

Location can be used to determine the value, which is the measure of worth based on the future benefits anticipated to accrue, therefore determining the pricing of the property. Land and houses that are in prime locations, areas that highly attract both developers and investors such as beach houses due to their proximity to the ocean and sandy beaches or wealthy neighborhoods like Runda and Kitisuru that attract the affluent, may go at a higher price compared to other locations. Additionally, Properties that are close to key amenities such as shopping malls, schools, public transportation, and hospitals are viewed to be of a higher value and therefore sold at a higher price. Urban areas tend to draw a large population, increasing the demand for properties thus driving up prices as a result of intense competition for properties that may be scarce.

Macro-economic environment

The overall state of the economy affects different sectors including the real estate market. Depending on the state of the economy, the pricing of different products in the real estate sector will vary. Employment rates, income levels, and interest rates affect property prices through shifts in demand for properties leading to higher or lower prices.  Limited supply with high demand leads to an increase in prices. Further, when the interest rates for mortgages are high, it causes a reduction in demand for houses leading to a decrease in real estate prices and vice versa. A strong and growing economy tends to drive property prices up as people have higher purchasing power.

Infrastructure

Infrastructure systems and facilities operate as the basis for a country’s economic growth. The development of infrastructure in an area influences the price of real estate properties. Availability of electricity, water, telecommunication services (internet connectivity and broadband access), and other utilities affect pricing since it makes the area attractive to live in, increasing demand for properties, the average property value alongside quality of life in such areas thus leading to an increase in prices.

Photo city lifeGovernment policies

The government comes up with policies and legislation on property taxes, deductions, land-use regulations, and subsidies that affect the price of land or property sold by real estate companies. Changes in these policies and regulations can affect property prices. For example, if the government decides to increase taxes like capital gains tax on real estate properties, this will likely lead to higher property prices and slow growth in the real estate sector. This is due to a possible decrease in the transfer of properties, therefore less supply with high demand.

Type of property

Though some developers may value houses of the same size differently, the size and type of a property has a significant influence on how much it will sell for. It goes without saying that a three-bedroom house will go for a higher price compared to a one-bedroom house in the same area. In the same manner, a studio apartment would be sold at a different price compared to a loft. The size of the compound that the home occupies may also affect the pricing whereby a children’s playground around the home may be valued more than an extra room.

As a potential real estate buyer or investor, it is wise to be aware of these factors as you make your investment decisions. Additionally, consulting real estate experts such as Safaricom Investment Cooperative, who have taken time to analyse locations and select places, can help in providing valuable insights into the specific market dynamics in Kenya.

To get in touch with SIC, visit: https://sic.co.ke/

Ensuring the Safety of Your Children in Your New Home

Ensuring the Safety of Your Children in Your New Home

You have purchased your new home and now it is time to move in. Moving into your new home and having a new living space can be such an exciting moment, and therefore it is important to ensure that you do your best to ensure that your children are always safe while at home.

Accidents are most of the time unpredicted, and with our curious little explorers, chances of being involved in one accident or the other are high while playing around the home. It is not always possible to be there with them to supervise all their movements in order to keep them from harm or being hurt. This is why it is important to create a completely safe environment where they can be free to explore with minimal risks. If you are wondering how to do that, here are some useful tips.

Childproof your home

Identify any potential hazards in your new home and make the necessary adjustments. Install safety gates both at the top and bottom of the staircase to control your children’s access to the stairs. Use plug protectors for all the unused electrical outlets and secure heavy furniture to the walls to help guarantee your children’s safety. Most importantly keep any dangerous substances such as cleaning detergents out of their reach.

Secure the windows and doors

Ensure that you install child proof locks on all the windows and doors, especially windows that are accessible to the children. If you have to open the windows, ensure you use window stops when opening them. This will prevent the children from opening the windows wide enough to pass through which might be dangerous. As a safety precaution, you could also install childproof locks on all the doors leading outside the house.

Install smoke and fire alarm systems

You can never be too careful with your child at home. Install fire and smoke alarms in all the rooms in the house and have them checked regularly for efficiency. This will help warn you in case of a fire outbreak which gives you time to not only save your child but your home as well. Also, keep flammable materials out of reach including lighters, matches, stovetop burners, and hot appliances. Aside from installing these systems, also ensure that your older children are trained on how to use and manage fire and smoke systems and equipment at home.

Free photo fire alarm switch

Install home security monitors

When choosing your home, consider an area with a security system set in place, but you could also add additional security cameras in the house that will help you monitor your children’s movements. This will enable you to know when your child is in trouble and help you react faster to avoid fatal home accidents.

Photo over shoulder view of unrecognizable black man holding screwdriver and adjusting security camera while installing it

Home ownership is an exciting journey but an even more exhilarating experience when you are assured of the safety of your children, invest with Safaricom Investment Cooperative to find a home that is suitable for you and your family. To invest, visit the Safaricom Investment Co-operative website: https://sic.co.ke/

New Home Owner? Here are some Essential Tips

New Home Owner? Here are some Essential Tips

You have finally concluded your search for a new home, whether by building or buying, and you are now in the exciting part of moving in, congratulations!

In this new phase of your life, you might be wondering what is needed of you and how you can ensure that your new home maintains good standards while ensuring that you are pleased with your investment decision.

Below are some tips that can help you as a new homeowner enjoy your investment. 

Free photo flat lay of real estate concept

Set Up a Home Upgrade Budget

As you start your home ownership journey, it is wise to set aside a fraction of your money for unexpected upgrades, changes or sometimes repairs. Setting up a home upgrade fund helps you avoid making a big dent in your budget if a huge upgrade needs crop up. For quality investments in homes like The Miran Residence, this stash of cash may be redirected to things like service charges or even decorating and furnishing your new home.

Personalize Your Home One Step at a Time

Getting a new home is a huge investment that takes a lot of effort especially financially. It is okay to take personalization of your living space with, for example, lighting and décor needs,  one step at a time. This helps you have time to recover both financially and mentally which will help you choose the best items for your new home without having to consider a tight budget. Give yourself time to adjust to homeownership’s expenses and rebuild your savings; the cabinets and furniture will still be waiting for you when you can comfortably afford them.

Free photo set designer at work indoors

Get to Know Your Neighbourhood

Moving to a new neighbourhood can be intimidating, however, you ought not to worry. Take it one step at a time and explore your surroundings. Get to know where you can get your essentials nearby and understand the environment you have moved into, which will improve your chances of fitting in and enjoying your new phase of life. Get to know the people who live around you. No man is an island, and your neighbour might be just what you need to start enjoying the neighbourhood. They will be one of the first people to come in and aid in case of trouble. Knowing your neighbours also provides you with a sense of community and helps you develop meaningful connections. It is also important to get contacts of key suppliers such as electricians and plumbers.

Never Ignore Crucial Maintenance

Home ownership requires you to carry out maintenance of your home yourself since you are your own landlord therefore you should not neglect any problem that puts you in danger or could worsen over time. Delayed action can turn a relatively small problem into a much larger and costlier one. Safaricom Investment Cooperative sees to it that your home is fully inspected before you move in and is as per world-class standards. For instance, The Miran Residence in Ruaka, is a modern world class residence being built using quality materials that will protect you against potential maintenance issues.

If you are looking to purchase a house, Safaricom Investment Cooperative provides you with quality homes that you can be proud of. To see some of their housing projects, visit the SIC website: https://sic.co.ke/house-projects

KIAMBU MARINA GARDENS NEWSLETTER – MAY 2023 ISSUE.

KIAMBU MARINA GARDENS NEWSLETTER – MAY 2023 ISSUE.

Land for sale kiambu marina gardens

The Kiambu Marina Gardens is a 100-acre project located in Ruiru area, Kiambu County. The project was
launched in 2022 and is beginning to take shape. In this newsletter and subsequent ones, we take a look
at some of the progress we have made with the parcel as we strive to build this area into the community
we promised. We take you through the amenities progress made so far to help you visualize the great
project for you and your family. We look forward to a successful handover of the parcel soon.

INFRASTRUCTURAL ADVANCEMENT.

At the inception of this project, we committed to execute a number of value adds on the parcel including;
1. Construction of a centralized state of the art gate and guardhouse.
2. Grading of murram roads from the entry point of the property.
3. Landscaping along the graded access roads.
4. Power and water supply at designated points.
5. Fencing of the dam area.
Since we commenced the works on site, we have manage to demolish the structures on the premises, done 90 % of bush clearing and started on road grading. Upon 100% completion of the above, we shall proceed to the next phase that will cover muraming and compaction of the roads and laying of trank line for water supply across the land for ease of water connectivity on each plot.

Real estate value adds
Real estate value adds
MARINA GARDENS INFRASTRUCTURE REPORT
Project Details/Scope Duration (Months) % Done
Road grading 1 45%
Demolition of old servant quarters houses 0.5 100%
Tree cutting & stump removal along road corridor 1 100%
Canal excavation 0.5 10%

The estimated project completion date is expected to be 13th September 2023.

ON GROUND PROGRESS AT A GLANCE

Real estate value adds
Water tank - value adds on real estate
value adds - land mark
Value adds- fence

HOUSE DESIGNS AND CONSTRUCTION GUIDELINES

HOUSE DESIGNS.

This project is a controlled development with 5 unique house designs to choose from. Our buyers also
have the liberty to submit proposed design to our appointed architect for review before approval.

Kiambu Marina House Designs

CONSTRUCTION GUIDELINES.

Construction guidelines are intended to showcase the general outlook of a project and guide developers on the procedure for design review. Here is a detailed read on the guidelines.

THE GOOD NEWS

We are currently issuing vacant possession certificates that allow you to utilize
your parcel as we await the title document. The certificates are available for
collection at our Westcom offices on Mahiga Mairu Avenue, 7th floor.

Kiambu marina payment options
Building or buying a home? This is what you should consider

Building or buying a home? This is what you should consider

As you embark on your journey to home ownership, you may encounter the dilemma of choosing to either build or buy a house. Before making your final decision, it is important to understand both options and to settle for one that best suits your means and needs.

Below are some of the factors to consider when deciding whether to buy or build.

Cost

Cost is a big determinant when making decisions on whether you should build or buy.

Building your own home comes with the construction costs, the cost of purchasing the land as well as other relevant fees for quantity surveyors, engineers, contractors, and county permits, approvals, and licenses for a great finished product.

Ongoing construction of the Miran Residence.

If you are looking to buy an existing home, the cost of the land and building are already factored into the purchase price. Safaricom Investment Co-operative offers beautiful and well-built houses like The Miran Residence that will cater for your needs and wants.

Therefore, calculate your costs and decide which option falls within your budget.

Design

One of the advantages of building your own house is that you get to design your house however you like. You are able to decide the architectural design and the position and design of the rooms as per your wishes.

On the other hand, ready-built houses already have a design set in place that is not easily changeable, thereby suitable for individuals who are comfortable with the set design.

Location

The decision to build or buy a house is also affected by location. Land used for development in Kenya is normally found in the outskirts of the city making building a house a more suitable option for people looking to set up holiday and retirement homes, or even individuals who are looking for a quiet place to settle down away from the hustle and bustle of the city.

If you need to live in or close to the city, buying a house is the better option as there are many apartments to choose from. Most houses that are being sold in the city are close to amenities such as shopping malls, schools, and hospitals, among others. Buying a house is also convenient for individuals who prefer the city and are working within or close to the city.

Research

Conduct thorough research on the pros and cons of buying and building a house. Research about the developer you are buying the house from. Check their track record and the condition of their other finished projects to ascertain whether they are trustworthy and dependable.

If you are building a house check the track record of the contractors and the teams, you are planning to use. How well do you know them? Their terms and timelines they promise versus delivery. How does the contractor’s financial model work? Do they have clear accountability and work plans?

Consult with people you know that have prior experience and who will help you understand all that you need to know to make an informed decision.

Whether you decide to build or buy a home, ensure that you have all the facts at your fingertips and have thoroughly analysed your options to guarantee a smoother road to achieving your home ownership dream.

Safaricom Investment Co-operative provides you with both lands to build and ready-built houses that help you achieve your dreams. To acquire land or buy a home, visit our website https://sic.co.ke/index

Buying your first home? Here is what you need to know

Buying your first home? Here is what you need to know

A home is more than just a structure. It is a source of financial and emotional stability and an investment in one’s future that needs careful consideration. Before purchasing a home, it is important to ask yourself the right questions that will ensure you make the right investment that meets your needs.

Do you wish to own your own house but are unsure where to begin? Here are a few questions to ask yourself as a first-time home buyer.

Which type of property do I want to invest in?

There are always two options available when purchasing a home: on-plan or off-plan. An on-plan property is an already built property that is ready for occupancy. These types of properties provide you with the convenience of being able to move in as soon as possible. On the other hand, buyers who are willing to wait until the building is finished, and those on a tight budget will benefit more from off-plan properties. In comparison to a complete unit, off-plan properties are usually sold at a cheaper price. Off-plan properties are housing developments that are still in the planning stages; you pay as the residences are constructed. This gives you the option to pay in instalments over a longer period of time and gives you the chance to pick the architectural design and paint colour you want for your home as it is being built, provided that it complies with the developer’s requirements.

What is my budget?

A great strategy that you should use when looking to buy a home is to find the most affordable house that is within your budget, and in the best neighborhood. Knowing how much money you are willing to spend on a home will help you choose the best neighborhood and deals that will not leave you struggling to complete your payments. Being part of an investment co-operative like Safaricom Investment Co-operative that invests in real estate comes in handy as they provide you with affordable home deals that may fall within your budget.

Can I get a mortgage or a home loan?

If you do not currently have the money, mortgages and home loans are great strategies for helping you realize your dream of owning a home. It is necessary to know how much you can borrow before choosing the home to buy. Make sure, if you are buying using a mortgage loan, that you are aware of the maximum size mortgage that your financier will approve. Mortgage is reliant on factors such as the size of your income and the house deposit, more importantly, understand the repayment plan, which is also determined by one’s age and the prevailing interest rates.

Is the real estate developer trustworthy?

Choose a developer that has a reputation for high-quality projects and one that keeps their word on how long their projects take to complete. It is also important to find out how well the developer does maintenance and finishes. Look at their previous projects to ascertain if they have been serving their investors well by maintaining high standard developments. Search for any recent or old news about them and if there have been changes thereafter to ascertain their reliability. This will save you the frustration that accompanies having a sub-standard developer.  Safaricom Investment Cooperative is a trustworthy and dependable developer that will help you realize your dream of owning a high-quality property.

When purchasing a home for the first time, it is wise to get as much information as possible about the process and engage experts in the field so that you are better informed and prepared to handle challenges that may arise. This also helps you be more confident in the decision you are about to make.

If you are looking to buy a high quality and affordable home, Safaricom Investment Co-operative provides you with just what you need. To find out more about their properties, visit https://www.sic.co.ke/house-projects

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