by Dorothy Okhako Anangwe
March 11, 2024
Benefits, Buying Land, Did You Know, Joint Venture, Kenyan Real Estate, Real Estate, Uncategorized, Update
02 Mins

Diversifying Your Portfolio: The Benefits of Investing in Real Estate

Real estate is an attractive alternative investment offering investors the chance to achieve long-term, stable, and attractive returns. Kenya’s real estate market compares greatly against other asset types such as stocks, cash, and equities. Over the past five years, the sector has seen immeasurable growth driven by attractive returns and more investment by investors.

Given this notable track record, below are some reasons why you should consider investing in real estate:

Potential for Appreciation

Kenya’s real estate market has shown resilience and growth, driven by factors such as urbanisation, population growth, government policy, and an increasing middle class which has created opportunities for appreciation as demand for real estate has increased resulting in property values rising. This ability to gain an extra layer of return on the investment makes real estate a valuable asset in your portfolio. The Brookvale Tuala Phase 1 in Ongata Rongai is an adequate example of this as it has experienced a rise in property value as it has developed into a residential area with an ever-growing neighbourhood.

Tangible Asset Value

Real estate’s tangible nature in the form of physical assets such as land and buildings provides inherent value and a sense of security for investors while also providing a utility by the fact that they can be used or developed in various ways to generate income. Our Bluebells Apartments project is an example of a successful and valuable tangible asset available to investors.

Risk Mitigation

Real estate’s considerably stable nature over time when compared to other assets provides investors with a dependable asset which helps reduce the portfolio’s overall risk by offering a buffer against market volatility and economic downturns. In the case of Kenya which has been experiencing economic strife in the last two years, the real estate and property sectors have been flag bearers as property value has grown exponentially as evidenced by its contribution to the country’s Gross Domestic Product (GDP) during this challenging period with the societies properties such the Olpajeta Ridge and Kiambu Marina Gardens value remaining relatively stable.

Inflation Hedge

Real estate has historically been a hedge against inflation with the sector’s unique position of having the value of physical assets like land and property increase in tandem. Additionally, real estate investments have the potential to provide rental income and give investors the ability to adjust rental rates providing a revenue stream that tends to keep pace with or outpace inflation. Our range of properties from Zaria Village to Oakwood-Kitengela are acting as sufficient hedging assets for investors during this ongoing inflation period that the country has been experiencing.

Diverse investment options

Real estate as an asset offers varied investment opportunities for investors depending on their financial goals and risk tolerance. The sector’s diverse properties offer unique potential returns from residential to commercial properties. Real estate investment vehicles such as Real Estate Investment Trusts (REITs) and joint ventures provide investors with accessible and diversified avenues to participate in the real estate market with the option of either directly owning physical properties or not. At SIC we offer the opportunity to invest in a range of property offerings in different areas across the country thus allowing investors to gain exceptional value and returns for their investments.

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.