What is Real Estate in Kenya?

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Real estate refers to land and anything permanently related to it, whether natural or man-made such as buildings, water, trees, minerals, dwellings, fences, bridges, etc.

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Most people do not know the difference between land and real estate. In simple terms, the term “land” refers to the earth’s surface from the core to the airspace above, including trees, minerals, and water whereas the term “real estate” refers to the land as well as any permanent man-made additions such as houses and other structures and constructions.

Another common misunderstanding is that of personal property and real property. Real property refers to the interests, benefits, and rights that come with owning real estate. Items that are not permanently tied to the land, such as automobiles, boats, jewels, furniture, and farm equipment are not a form of real estate. These items are what are classified as personal property. construction company in Kenya

Characteristics of Real Estate in Kenya

Real estate has two main characteristics, physical and economic.

Physical characteristics

The land has three physical qualities that distinguish it apart from other economic assets;

Immobility

 While some land can be removed and the topography changed, the geographic position of any piece of land cannot be changed.

Permanent

The land is durable and unbreakable

Unique.

There can’t be two identical plots of land. Each piece of land is geographically different.

Economical characteristics

The land has several economic qualities that determine its investment value;

Scarce

Land is not rare but somehow its supply is limited.

Improvements

An improvement is defined as any additions or alterations to the land or a building that affect the property’s value. There is a slight difference between improvements to the land and improvements on the land. “Improvements on” the land refers to private improvements such as houses and fences whereas “improvements to” the land are improvements of a public nature such as footpaths and drainage systems.

Permanent investments

When the land has been developed the capital and labor used for construction represent a fixed investment. Though a building can be demolished, upgrades such as sewer lines, power connection, water, and drainage systems are considered permanent because they can’t be removed.

Location

One of the most essential economic qualities of land in Kenya is its location. People’s preferences and tastes in a certain location are influenced by factors such as convenience, reputation, and history.

 Types of Real Estate in Kenya

There are different sorts of real estate in Kenya, each having its function and utility.

The main categories are:

Land

Residential

Commercial

Industrial

Special purposes

Land

Land is the foundation for all other types of real estate in Kenya. Developers buy land, assemble it with other properties, and rezone it to improve density and property value.

Residential

Housing for individuals, families, or groups of people is referred to as residential real estate. This is the most prevalent sort of estate and the most well-known asset class

Commercial

This includes all properties utilized solely for business reasons. For example, Apartment complexes, gas stations, grocery shops, hospitals, hotels, offices, parking lots, restaurants, shopping centers, stores, and theatres

Industrial

This refers to any property that is utilized for manufacturing, production, distribution, storage, or research and development purposes such as factories, power plants, warehouses, etc

Public property

This refers to properties that are utilized for public activities such as cemeteries, government buildings, libraries, parks, places of worship, schools, etc.

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Three Bedroom House Plans in Kenya

 Examples of Real Estate in Kenya

Let’s look at some actual examples of different sorts of real estate in Kenya

Hut

This is a shelter made primarily of natural materials such as wood, mud, and clay.

Single-family housing

This is a home that is designed exclusively for one family.

Multi-family housing

This refers to any set of homes designed for more than one family.

Apartment housing

An apartment  building with more than one dwelling unit, the majority of which are intended for domestic use

Multi-family housing

This refers to a multi-story detached building with independent apartments or units on each floor.

Condominium

This refers to a building in which each unit is owned by a different person.

Detached house

This refers to a self-contained structure that is not connected to anything else. More like a traditional home.

Portable housing

This refers to houses that can be relocated such as houses made from containers.

Mobile housing

A mobile home is basically a vehicle on wheels that houses a permanent occupant.

Overview of Real Estate Industry in Kenya

The real estate sector in Kenya has risen at an exponential rate during the last two decades, as indicated by its contribution to the country’s GDP, which increased from 10.5 % in 2000 to 12.6 %in 2012 and 13.8 % in 2016. In 2019, the real estate sector accounted for over 7% of Kenya’s gross domestic product (GDP). Let’s look at some of the factors that have contributed to this growth;

1. Infrastructure improvements such as improved roads, utility connections, and upgrades to key airports

2. A stable GDP growth of 5.4 per cent per year over the last half a decade as compared to a Sub-Saharan average of 4.1 per cent.

3. Rapid urbanization of 4.4 per cent per year, compared to the global rate of 2.5 per cent, and population growth of 2.6 per cent per year.

As a result of these reasons, distinct trends have emerged across numerous real estate themes, with investors seeking large returns and purchasers seeking aspirational lifestyles and high-quality items.

Commercial

Office

The Kenyan office sector has risen quickly in recent years, following the growing economy, as businesses extended their operations and international corporations continued to establish bases in the country, which is seen as a crucial gateway to the East African market and a leading economic hub in Sub-Saharan Africa.

As the industry matures, new trends emerge as the clientele’s preferences shift and foreign corporations create demand for products of world-class quality.

Developers are increasingly utilizing green building technologies to decrease running costs and provide a safe and healthy workplace for workers, as it has been demonstrated to enhance staff productivity.

A smart office is another emerging trend that has altered the workplace. With features such as a fully equipped gym, cafeterias, and accessible entryways for those with disabilities.

To fulfil the needs of clients, offices are now intended to feel like homes, complete with modern amenities. The driving elements behind today’s growing modern offices are quality, ambience, elegance, and peace.

Retail

The retail industry has expanded dramatically, owing primarily to an increase in mall space. With a growing middle class and hence more disposable income, international and local developers have jumped at the chance to tap into the ready market with the mall concept. Currently, Kenya ranks second behind South Africa on Africa’s second-largest mall space.

Kenyan malls such as The Two Rivers Mall, Garden City, and The Hub are among the most significant developments. Multinational merchants such as Carrefour, international restaurants such as Burger King and Subway, and sports retailers such as Adidas have all flocked to the middle class.

Furthermore, the country is rapidly urbanizing, and as a result, technology has become a secondary requirement, with Kenya being known as one of the continent’s major technological centers and for its one-of-a-kind mobile money transfer system. As a result, with a 70% internet penetration rate, online shopping is steadily gaining popularity, resulting in the phenomenal success of sites like Jiji, Rupu, and Jumia.

Industrial

The industrial sector has been undergoing a gradual transformation due to a changing clientele that prefers high-quality stock that allows for modern retailing, distribution, and manufacturing practices.

Modern parks are also designed with a live, work, and play philosophy in mind. Furthermore, the new market requires a tranquil setting distinct from the busy Nairobi Industrial Area, Baba Dogo, and Mombasa Road districts, where the majority of Kenya’s old stock, primarily outmoded warehouses, is located.

To do so, new industrial parks are being built on Nairobi’s outskirts, such as Kiambu and Machakos county where they are easily accessible while still being close to major airports and train stations.

Residential

With a fast-growing population and, more importantly, an expanding middle class, the residential sector has seen the strongest demand, with a nationwide housing deficit of 200,000 units per year and a total deficit of more than 2 million units.

The greatest demand, however, has been for inexpensive housing to meet the needs of the 61 percent of city dwellers who live in slums, with a scarcity of student housing accounting for 40 per cent of the deficit.

As a result, we’ve seen an increase in the use of low-cost house construction approaches such as alternative building technologies, which have been shown to lower construction costs by up to 50%.

In addition, master-planned communities are becoming more popular as the demand for a live-work-play lifestyle grows, with locations like Kiambu (Tatu city) and Machakos (Konza City)counties becoming hotspots.

Hospitality

The hospitality industry is heavily reliant on the tourism industry, which has seen a recent spike in volume. Developers are transforming ordinary lands to accommodation facilities for hotel purposes to diversify their revenue streams.

In addition, a new concept known as dual-branding, which entails combining two concepts such as serviced apartments and a hotel in the same building, is getting popular with investors.

Land

Land value has risen as a result of infrastructure development, while a growing population has assured steady demand. Investors are increasingly buying land to sell it later, a concept known as land speculation, in the belief that land values would rise in the future.

Land banking is a concept that involves putting the land to a temporary use that generates income regularly. Additionally, to entice customers, developers are including agriculture as a value add to plots for sale, as well as offering clients seasonal returns.

 Real Estate Companies In Kenya

Searching for land or property online is insufficient for someone entering the Kenyan market, especially as a buyer. This is merely a first step in the correct way.

It will make your job easier if you know who to contact when you need to buy or sell property or land. Let us look at some of the best real estate companies in Kenya.

   1. West Kenya Real Estate Ltd

West Kenya Real Estate Ltd is one of the country’s best real estate firms. The firm is well-known in Kenya for discovering premium homes. For the past years, it has been settling Kenyans in various sections of the country.

If you’re looking for a trustworthy partner to help you buy or sell a home, this organization should be at the top of your list. West Kenya Real Estate Ltd finds the greatest bargains for clients at prices that are both cheap and manageable.

West Kenya Real Estate Ltd projects are frequently futuristic and designed to assist investors to achieve a speedy return on their investment. The houses are conveniently positioned near important amenities, but the price and payment plan are unbeatable. A thorough search of the property is carried out, and you are guaranteed legit title deeds. The firm offers construction of residential and commercial, management, letting, sales, valuation and joint venture services.

2.Hass Consult

Hass Consult is another one of Nairobi’s best real estate firms. It is a multi-award-winning real estate company with over 25 years of experience in the Kenyan market. The company’s services include advice, sales, lettings, and property management for both commercial and residential buildings.

Hass Consult provides buyers with a hand-picked portfolio of high-yielding properties. It provides customers with access to a pool of high-quality tenants and buyers, allowing them to reduce property turnover time and obtain a higher price

3. Knight Frank

Knight Frank is a renowned independent real estate advisory firm in Kenya, founded in 1998. Property management, agency, valuation, project management, feasibility, and research-led consultation are among the services it provides. Its mission is to improve operations, maximize investment returns, and add value through collaborative efforts.

  Types of Real Estate Service Providers in Kenya

Real estate is extremely important, as both investors and homeowners can attest. As their major duty, they assist in navigating the sensitive process of purchasing and selling real estate. Let’s explore;

Construction

For decades, real estate investors have relied on estate agents to construct their homes. So, whether you’re building a property to sell or own, you should think about hiring a respected firm like West Kenya Real Estate ltd that can provide high-quality outcomes.

In building and construction services, the agency coordinates and supervises the project from start to finish on behalf of the client. The more experience they have, the greater cost savings, high-quality standards, and meeting project deadlines they can achieve.

Investors should strongly consider hiring these specialists because they have a strong network of the best engineers, contractors, architects, and other related contractors working for them.

Selling Property

People selling a home for the first time, in particular, are safe if they hire these professionals. When a potential client from their pool of many shows interest, the agency negotiates a good selling price.

If none are accessible, they can also assist with marketing the home or business through their website, which cuts down on the time it takes to sell. If you’re asking, “How do I sell my house quickly?” Here is the route to pursue.

Buying Property

Aside from selling homes, there are a substantial number of people who are eager to buy a home. It might be your first house or an addition to your existing property portfolio.

Because you don’t have any prior expertise or a pool of possible sellers, the process can be intimidating. Real estate agents have everything you need to achieve your homeownership goals.

If you hire West Kenya Real Estate Ltd, a trained and professional agency with a variety of possibilities, you’ll be able to achieve complete success. When you have a smooth property purchase procedure, you lessen your risks of losing money, which is many people’s greatest worry.

 Property management

The majority of estate agencies have more management clients than any other service. As more individuals acquire property, they seek professionals who can effectively manage it. As a result, management varies based on the type of property and services provided.

The rented and leased property requires careful management to guarantee that all units are occupied at all times, that the tenant’s rights are respected, and that the contract’s terms, including rent payments, are adhered to. 

Finally, to ensure that the apartments for sale move quickly and generate a return on investment, specific marketing, and house staging tactics are required.

 Where to get real estate Information in Kenya

West Kenya Real Estate Ltd is one of Kenya’s best real estate firms, especially when it comes to information about agency and valuation services. The company has a vast consumer base that includes small and major property investors, both in the commercial and residential sectors, thanks to its many years of experience in the market. Its purpose is to serve customers with high-quality services while adhering to professional standards and ethics.

 Investing in Real Estate in Kenya

Have you ever wondered how some real estate investors manage to always get it right while making huge profits? Here is how to get started.

Location

The most crucial factor to consider while purchasing real estate in Kenya is the location. You have a terrific investment if you own a high-value home in the city core. However, this isn’t for everyone.

Consider a Buy-to-Let property

Renting out property is one of the ways to make money from real estate in Kenya. It’s a lot easier than purchasing and selling real estate, plus you get a consistent monthly income. This is one of the most popular real estate investment techniques in Kenya.

After you’ve rented the house, it’s simple to raise the rate every year to reflect inflation and keep up with your neighbours. If you’re unsure about the value, you can always ask those who are already doing it. Although there are obvious risks, with good planning, buy-to-let can give a solid source of income in the long run.

 Choose the type of property that would provide you with the best returns.

When you decide to invest in Kenyan real estate, you must first determine your investment objectives. What do you hope to get out of this property? Is it for personal use, or do you want to rent it out and make money? All of these will aid in determining the type of property that will provide you with the best returns.

In Kenya, modern housing plans are divided into two categories: bungalows and maisonettes. You might be wondering what the difference between the two house designs is, but let me explain. The structure of a bungalow home plan is created on a single story, usually the ground floor, and then it is spread horizontally.

Maisonette house designs in Kenya, on the other hand, have two floors: the ground and first, and are a popular manner of building residences, especially in areas where land or plot size is limited. It allows the owner to have some area for parking, a children’s playground, or even a small orchard if preferred. Let’s look at some trending houses in Kenya.

Luxurious bungalow 3 bedroom house

In Kenya, a three-bedroom house plan is an excellent choice. It comes with a generous amount of space for people who need it, as well as enough facilities to make life enjoyable. This is an excellent approach for a family with multiple children who wish to protect their privacy as well as their children’s.

The architects can construct a structure with opulent extensions such as a fitness center, built-in wardrobes, a large kitchen and dining room, and other deluxe features that the house of your dreams has.

Bungalow 4 bedroom house

This is a modern version of a traditional Kenyan house design. It’s perfect for a large family, with enough amenities for everyone. They provide additional comfort and privacy in most cases.

This house plan is ideal for families with little children or a disabled person, as the structure is just on the ground floor, making movement simple. Our architects have created a variety of designs that are available for you to view online.

Maisonette 4 bedroom house

A four-bedroom home design in Kenya is today considered to be the pinnacle of all modern house plans in Kenya. It may be costly to construct such a structure or even to purchase one that has already been constructed, but the rewards are overwhelming.

It provides more convenience and gives the owner more options around the house. For example, the house could contain bedrooms on the second and third floors, some on the ground floor, and others on the second and third floors.

The entrance is spacious, and the kitchen and other rooms are not cramped because there is enough room here. In most cases, the inside is finished to perfection, with all of the fixtures and fittings in place. This house plan includes plenty of parking space as well as a backyard where you can play and host leisure activities.

 Selling your real estate property in Kenya

The home selling procedure is relatively similar across the country, whether you plan to sell your house on your own or with the help of a real estate agent. Follow these guidelines below.

Find a real estate agent

The success of the transaction is determined by having the ideal partner during the process. You may avoid the headache of working out the dynamics on your own by hiring a real estate agent.

House valuation

To price your property according to the current market, you’ll need to get it appraised by a professional.

Although you have the freedom to advertise your home at any price you like, you must first determine what the market is prepared to pay before setting a price for it to sell.

Make any repairs or replacements that are required

Unless you intend to have the buyer undertake all of the repairs in exchange for a lower price, you should fix up the house.

Before showing your home to potential buyers, you should walk over it with your realtor and develop a note of what needs to be cleaned, repaired, or replaced.

Complete the seller disclosures form

This is where you reveal all of the property’s components. Are you familiar with the materials that were used? When did the house get built? Furthermore, you should disclose any issues arising in the house while you were the owner such as leaks, defective wiring, mouse damage, bugs, cracks in concrete floors, etc and explain how the situation was resolved.

 Frequently Asked Questions About Real estate in Kenya

i. What exactly is real estate in Kenya?

Real estate refers to land and anything permanently related to it, whether natural or man-made such as water, trees, minerals, buildings, dwellings, fences, bridges, etc.

ii. How do I get started in real estate in Kenya?

The majority of Kenyans who invest in real estate do so with a down payment and then finance the rest with debt. The principal is paid gradually at first, then more quickly as the amortization time progresses.

iii. Can you make good money in real estate in Kenya?

Renting out property is one of the ways to make money from real estate in Kenya. It’s a lot easier than purchasing and selling real estate, plus you get a consistent monthly income. This is one of the most popular real estate investment techniques in Kenya.

Conclusion

From what we have covered above you now have a better understanding of real estate in Kenya.

West Kenya Real Estate is an all-in-one real estate company offering construction, management, letting, sale, and valuation services to clients all over the country. We’ve over 8 years of experience and have handled a diverse range of property constructions, designs, and management. Talk to us today for your next project. You can reach us on call/SMS/WhatsApp via +254789 217 685 / +254 724 481 087

If you are looking a house designs in Kenya or a construction company in Kenya for your next project, think Marble Engineering and Construction Ltd.
We are a Design and Build Construction Company in Kenya with over 25 years of experience in active building construction in Kenya. We mainly do house plans, project planning, building construction, renovations and extensions, institutional building, commercial office blocks and plumbing and drainage services.

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