Factors that determine the prices of lands in Kenya
Investment in land and property has become a key venture for any investor looking for a serious return on his investment. Buying lands in Kenya is a very crucial undertaking seeing that land is a very valuable asset in Kenya and its appreciation value is always constantly on the rise. It is therefore important to conduct a prior research on any land or property before going ahead to buy it.
Outlined below are some of these factors that determine the price range of a given land or property;
Location- Location is the major factor affecting price considerations. Lands located near dumpsites or cemeteries usually have lower values compared to other lands. There is also no future appreciation to be expected. On a similar note, lands located in urban areas tend to be more expensive than those in rural areas. One needs to consider the location depending on the purpose for which he/she is buying lands in Kenya. For example land in rural areas are preferable when considering farming while those in urban areas are good when considering construction of a commercial building or rental units.
Distance from the main road- A land for sale in any place which is accessible to public transport is traditionally more costly. For example the value of land and property along Thika road greatly increased as a result of the construction of the Thika superhighway.
The real estate agencies involved- Different real estate companies charge different rates of commissions for the sale of property. And if you use more than one real estate agent then you are likely to pay more for the said property. It is advisable to use just one real estate agent in a given transaction. Also, ensure that you find out one whose commission is favorable to you so that you spend the least amount possible in a transaction.
Availability of communication networks- Good communication networks that is strong telephone and mobile phone signals is an essential component when considering buying land in any part of Kenya. This is more important for those investors looking to set up business empires. Business cannot be conducted without communication.
Electricity- Electricity is the source of power all over the world today. Almost every sector uses electricity for its day to day operations. Whether it’s agriculture, Information Technology, Communication or even science all require energy to operate. It has become almost impossible to do anything without electricity. Hence the need for availability of electricity around the area one intends to buy land.
Water-Water is another important consideration when buying lands in Kenya. For those buying land for farming, they will need water to irrigate crops. Water is also needed when buying land to construct rental property. The value of a house with piped water is higher than that without piped water. Investors need to consider buying land where it is easier to access water.
Accessibility- Availability of good and efficient roads makes surrounding properties quite attractive and definitely pushes their value upwards. This is one of the major determinants of prices of lands in Kenya.