Browse Bomahut articles, guides, and practical insights about communication for landlords and property managers in Kenya.
Investing in the Kenyan Real Estate market is a trend that has been going on and it’s not just for show. Not only does the sector hold lots of opportunities for investors but it also faces encouragement from the Government, making it a highly profitable market. Real estate properties can offer passive income to investors, eg, rental income. Investors can also make profits through Short-term rental properties such as Airbnbs.
Whether you manage apartments, serviced apartments, room rentals, vacation homes, or luxury property, you can agree that maximizing profits is almost impossible in the current economic conditions.
In Kenya, the top property management companies charge a property management fee of between 5% to 10% of the gross rent.
The real estate market in Kenya has seen rapid growth and changes in the past 10 years. Developments have heavily influenced this growth in infrastructure. They include roads e.g. The Expressway, airports, and railway lines e.g. The Standard Gauge Railway, among many others. This growth has also been influenced by the high returns investors have gained over the years, averaging 25%. This is as compared to the 12.4% returns from traditional assets. Kenya has also experienced fast urbanization in recent years. Towns such as Naivasha have grown due to the annual safari rally championships. The country’s stable GDP, which has averaged 5.4% over the past 5 years has also greatly contributed to this growth. Real estate properties can offer passive income to investors, eg, rental income. With this, investors can add to other sources of income such as salaries. They also hold the potential for wealth accumulation. This is because of the appreciation of the property value as well as the growth of equity over time. An increase in value also increases investors’ wealth, allowing them to expand their investments and fund new ones.
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