How Profitable Is The Real Estate Business In Kenya?
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.
