The Kenya real estate sector has come of age

The Kenya real estate sector has come of age

The Kenya real estate sector has today become a household name in terms of the major sectors responsible for driving the economy of the Country forward. This vital sector is now mentioned alongside traditional economic heavyweights such as the agricultural sector and the fishing industry. More investors are turning their eye on this crucial sector which mints millions of shillings in profits. The real estate sector has over the years gained prominence to become one of the biggest contributors to the Country’s gross domestic product. Thus the stakeholders, including the national government and the 47 County governments seem to have noted the relevance of the real estate sector and have vowed to accord the sector all the necessary support.

Kenya, being one of the fastest growing economies in the continent has continued o attract investors from across the globe, with the capital city Nairobi being regarded as a hub for business.

With an expanding population of over 40 million people and a rich and wide range of natural resources such as land and minerals, Kenya is set to become a sought-after destination for property investors. The current standing of the number of investors is already high, especially in the major towns like Nairobi, Kisumu, Mombasa and Nakuru.

Massive improvement of infrastructure witnessed all over the Country such as the construction of the legendary Thika superhighway have helped to give the real estate sector the impetus needed to steer it to greater heights of economic growth. The government has made transport improvement its number one priority seen as it is one of the vital factors that attracts investors into investing in the Kenya real estate sector. Other towns like Kisumu have been equally enjoying improved infrastructure and improved communication networks as well.

Investors also find land tenure systems in Kenya to be favorable. Kenya has two major land tenure systems i.e. the freehold and leasehold systems. Under the freehold system the buyer becomes the absolute owner of the land after completing payment. He is issued with the deed and has absolute rights over the property meaning he can do whatever he/she pleases to do. Majority of lands in Kenya fall under this type of tenure system.

Alternatively, one can obtain land in Kenya via leasehold basis whereby the government leases out pieces of land for a maximum period of 99 years, which is quite a long time by any means. Sometimes the government may restrict what is to be done on leasehold property but this is not quite the norm. This can only be done in areas that have catastrophic histories and this quite rare. This form is quite sufficient considering that the lease period is in fact more than enough to get your initial capital back and make more money on top of it.

For those with an aim to try a short term investment project in the Kenya real estate market, there are usually short term lease agreements that can be arranged with private land owners, like a 3-year lease to use the plot. This is a convenient way to invest short term instead of buying the land.

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