Who Owns Whom

Real Estate Activities Kenya

Real Estate Activities in Kenya 2020

Louise Mitchell | Kenya | 30 October 2020

Enquire about this report

Report Coverage

This report focuses on the real estate industry which comprises commercial, industrial and residential properties, as well as property development and property valuation. The report includes information on the size and state of the sector, economic conditions, regulations, government initiatives and other influencing factors. There are profiles of 21 companies including real estate investment trust manager, Stanlib’s ILAM Fahari i-Reit, other Nairobi-listed companies Centum Real Estate and Home Afrika and agents including Pam Golding and Knight Frank.

Introduction

This report focuses on the real estate industry which comprises commercial, industrial and residential properties, as well as property development and property valuation. The real estate sector contributed 6.9% (KSh422.2bn (Kenyan shillings) at constant prices, or approximately US$4.1bn) to GDP in 2019, down from 7% in the previous two years. The sector’s contribution grew by 5.3% from KSh400.8bn in 2018. There were 434 registered estate agents in March 2020, the same as in 2019. Role players said the sector’s reputation is harmed by more than 40,000 unregistered agents who are accused of corrupt practices. The majority of players are privately-owned estate agencies and property developers with a number of international companies present. The government’s affordable housing initiative is viewed as an opportunity for property developers to diversity, as the commercial and high-end residential property markets are cooling down due to oversupply and constrained consumer spending. The initiative is, however, hampered by a lack of funding.

Strengths

• Global retail companies are boosting demand for retail space.
• Government’s investment in affordable housing to achieve Vision 2030 goals.
• International investors are investing in the development of satellite cities.
• Lifting of the interest rate cap is expected to increase access to credit.
• Multinational hotel groups are investing in Kenya.

Weaknesses

• Constrained access to credit prevents consumers from buying property, rendering the market into a rental market.
• Economic factors affect household finances and spending power.
• Weak performance of Real Estate Investment Trusts.
• Weak regulatory framework leads to unregistered agents who damage the profession’s reputation.

Opportunities

• Developers could convert redundant office buildings into residential spaces if the economy strengthens.
• High demand for affordable housing and student accommodation.
• Increasing interest in green buildings.
• Investment opportunities in counties other than Nairobi as housing demands grow.
• Public private partnerships to develop affordable housing projects.
• The affordable housing project will boost the mortgage market.
• The work-from-home trend may increase demand for collaborative work spaces.

Threats

• Decline in tourism during coronavirus pandemic is affecting the hospitality property sector.
• Government funding for the affordable housing initiative is not yet available.
• Inefficient building approvals by government departments are delaying property development projects.
• Online shopping is leading to reduced occupancy in malls.
• Oversupply of commercial property and high-end residential properties are driving down prices and rentals.
• Security problems and terrorism.

Outlook

The outlook for 2020 is poor and stakeholders are reluctant to estimate the extent. The sector has potential for growth, with the expansion of urban areas in counties offering opportunities to property developers and other investors. The government at a national and county level, is keen to pursue various partnerships which should support development and financing for the real estate sector, especially affordable housing and infrastructure. A continued decrease in supply of new commercial office space over the next two to three years is expected with most new office stock coming from currently constructed buildings. Rental prices for offices are expected to remain unchanged in the short term due to downward pressure arising from oversupply in the market.

Read More..
Real Estate Activities in Kenya
Real Estate Activities in Kenya 2020

Full Report

R 1 900.00(ZAR) estimated $105.39 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.77 (USD)*

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
2.1. Geographic Position 2
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 4
4. SIZE OF THE INDUSTRY 5
5. STATE OF THE INDUSTRY 6
5.1. Local 6
5.1.1. Corporate Actions 15
5.1.2. Regulations 16
5.1.3. Enterprise Development and Socio-Economic Development 18
5.2. Continental 18
5.3. International 20
6. INFLUENCING FACTORS 21
6.1. Economic Environment 21
6.2. Technology, Research and Development (R&D) and Innovation 22
6.3. Labour 24
6.4. Environmental and Social Concerns 25
6.5. Cyclicality 26
7. COMPETITION 27
7.1. Barriers to Entry 27
8. SWOT ANALYSIS 28
9. OUTLOOK 28
10. INDUSTRY ASSOCIATIONS 29
11. REFERENCES 30
11.1. Publications 30
11.2. Websites 30
APPENDIX 1 31
Summary of Notable Players 31
COMPANY PROFILES 35
ACORN HOLDINGS LTD 35
AIRWAVE PROPERTIES LTD 38
AMAZON VALUERS LTD 40
AMS PROPERTIES LTD 42
AZIZI REALTORS LTD 44
CANAAN PROPERTIES LTD 45
CENTUM REAL ESTATE LTD 47
ELEGANT PROPERTIES LTD 49
ENKAVILLA PROPERTIES LTD 51
FUSION GROUP LTD 53
HASSCONSULT LTD 55
HOME AFRIKA LTD 56
ILAM FAHARI I-REIT 59
KENYA VALUERS & ESTATE AGENTS 61
KNIGHT FRANK (KENYA) LTD 63
MYSPACE PROPERTIES (KENYA) LTD 65
OPTIVEN LTD 66
PAM GOLDING PROPERTIES KENYA 68
RE/MAX KENYA 70
USERNAME INVESTMENT LTD 72
VILLA CARE LTD 74