The next time you want to open your mouth and complain over the burdening uchumi you might want to survey fellow brothers life styles first.The results will most definitely shock you! A new survey has revealed that Kenyans have mulla to splash.
Local developers are now preferring to invest in luxury projects because of the high returns associated with such investments.
According to Cytonn real estate research, the Nairobi Luxury Apartments Market developments generated total returns to investors of 13.1 per cent per annum in 2017 (a rental yield of 8.1 per cent and price appreciation of five per cent), compared to the residential market average of 5.4 per cent in 2017 and 2.8 per cent by Quarter Two 2018.
“The returns are boosted by premium rents that luxury homes attract as a result of the amenities and high-quality levels of finishing,” said John Denge, Cytonn real estate, Senior Manager, Regional Markets.
Apart from the growth of the middle-class as well as high net-worth individuals with sophisticated tastes, aspiration lifestyles and increased disposable incomes has also created a market for luxury products. “More developers are likely to continue investing in luxury products given the above factors.
However, developers of luxury products ought to differentiate their products, especially in terms of amenities, quality and design, given the increased supply in middle-class and high-end units in the market, to attract their target clientele,” said Denge.
This was revealed after local real estate agency HassConsult announced a luxury development joint venture with the family of the late Kenya government minister, Munyua Waiyaki, which will see the development of 450 apartment units, on 22 acres of land owned by the family.
The Mixed-use Development dubbed Enaki is slated to break ground mid-2019 and will include a hotel, retail, and high-end amenities such as an amphitheatre, a floating restaurant and a public botanical garden.