Low cost houses haunts Kisumu real estates investors
Due to the high rate of roads and infrastructures renovation and construction the precinct of Kisumu city, a number of Kisumu real estates developers and private investors had been and some still scramble to at least acquire a plot or land next to the lake side CDB to put up buildings with an aim of wrecking in massive returns.
In the past few decades Kisumu real estates have documented unparalleled progression all over the county with residential and commercial buildings drawing all sorts of investors over the globe to come and have a taste of investment in the lake side region. This circumstance ensued in a precarious condition where low costing houses were affect significantly in the region. This is a result of the developers and investors taking high concentration on the upper segment of the Kisumu real estates market.
Due to this, the investors have found themselves stuck in the market with very few clients to attend to, the main reason being that majority of residents in Kisumu county cannot afford to buy such exquisite properties in the region yet. Another reason is that the demand of affordable and low costing houses in the region stands at around 57 to 63 percent making it very cumbersome for the modern and attractive houses to pick the required momentum. Some of the investors who have been coming in to capitalize and benefit from the region believes that such kind of projects have hindered the business uptake.
Majority of the local and private investors are protesting that the construction of low cost houses have been affected by the ever increasing rates of building materials and high land rates making it difficult to invest in such projects.
It now very conspicuous that lands and plots prices have been doubling and at times even tripling after every 2-3 years since 2008 after post-election violence where many property agencies’ begin to emerge in the Kisumu real estates industry. Many developers now attributes lack of housing to the surging land prices. For instance the labor cost, building steels and even cement have escalated among others. low cost houses haunts Kisumu real estates investors for this particular reasons.
To mention a few, there is shortage of hostels for university and college student, inadequate hospitality sector, need of rental houses ranging less than Kshs 10,000 per month while the market trend in the region in terms of rental prices is surpassing that by afar.
Kisumu real estates industry needs the aid of the Kisumu county governance to give the stakeholders in the real estate sector so piece of land and even reduce land rates and provide affordable materials in the region in order for the developers to come up with modern, stylish and affordable houses in the region
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