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Landlords in posh estates count losses as rents decline

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Landlords in high-end estates are counting losses as effects of the spread of the Covid-19 pandemic continues to erode rental earnings.

According to the latest Hass Consult Property Index, rent income from high-end estates such as Runda, Spring Valley, Loresho, Kitisuru and Lavington fell marginally in the first quarter of this year, with analysts warning the worst is yet to come.

“Whereas the property market began showing signs of resilience as confidence trickled in, the Covid-19 pandemic which was first locally recorded in early March, will have an effect going forward,” said Sakina Hassanali, Head of Research and Marketing at Hass Consult.

Ms Hassanali said the effects of the pandemic will emerge in the second quarter.

“Globally, the pandemic has caused markets, across all asset classes to perform poorly but the extent of this effect on our local market will depend on how we manage the Covid-19 pandemic.”

Last month, Treasury ruled out suggestions that the government should be compelled to waive rental payments for tenants whose income has been impacted by the pandemic.

Compared to last year, Kitisuru saw rental yields fall the sharpest by 7.7 per cent, followed by Loresho (7.3 per cent), Spring Valley (6.5 per cent) and Lavington (3.4 per cent).

READ ALSO:   Nairobi house prices, rents drop

In other estates however, landlords have seen an increase in rental yields. Gigiri, Kilimani, Langata and Rigeways recorded a marginal increase in rental yields.

Land prices similarly fell across both suburbs and satellite towns in the first quarter of this year, sustaining the decline recorded in previous quarters.

Gigiri, Kilimani, Langata and Upper Hill reported a decline of between 1.6 and 2.8 per cent in the first quarter of 2020. Land prices in Thika, Kiserian and Ruaka similarly went down in the period under review.

Hassanali said in the short term, landlords and agents will be pressured to offer rent discounts and freezes as the stay-at-home orders are extended and economic activity remains low.

Hassanali however said despite the challenges brought by the pandemic, there could be an opportunity for investors if the situation is well managed and there is a gradual recovery in the economy

“The COVID-19 pandemic has left some landowners with unexpectedly limited liquidity and as a result we may see a bigger supply in land moving forward,” she said.

By The Standard.co.ke


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Business

Navigating through the Covid-19 Terrain and a Story of Exceptional Transformation at Optiven

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Navigating through the Covid-19 Terrain and a Story of Exceptional Transformation at Optiven

Optiven Group has continuously had all its eyes trained on its vision of economically and socially empowering and transforming the society.

This vision was however momentarily shaken by Covid-19, especially on the month of March 2020, when the first case was reported. Soon, all was not business as usual. The pandemic scared our staff and customers alike. With huge loans to pay, massive salary bills and many office rentals to cope with, everything seemed daunting. The worst was when we closed our offices and temporarily sent hundreds of staff home. That was extremely agonizing to bear.

As an entrepreneur, this was one of my worst periods ever. The headaches were not ceding ground and the only thing that was consoling was the power of prayers. It is during such times when the test of leadership comes to play.

Our most affected area of business was our sister venture entities in the name of restaurants. Indeed, we sent hundreds of staff home. We are now however thanking God that 85% of these staff are back and with a projection of bringing back the rest soon, as business starts coming back.

READ ALSO:   Nairobi house prices, rents drop

Importantly, soon after Covid-19 pandemic hit, Optiven Group was swift in adopting new strategies and quickly embracing appropriate technology to counter the new terrain. This is perhaps one of the reasons why the firm is still expanding, especially on the area of job creation and mentorship front.

It is largely courtesy of these strategies that despite the current pandemic, we have managed to launch enormous mentorship programs such as the George Wachiuri School of Mentorship and also engaged in encouraging SMEs that have really been struggling to stay afloat through our business mentorship sessions. Through the latter, we have continued to inspire over 7,000 active participants through George Wachiuri’s Facebook LIVE shows that are also available on my You Tube channel, this has continued to give hope to many.

Still, during this period, we have managed to create over 100 permanent jobs for both senior and middle level employees, plus over 200 casuals that daily work in our projects. This job increase is in line with our goal of creating over 30, 000 jobs by the year 2030.

On the real estate front, we really had to think away from the box and undertake a massive 360 degree transformation that was educated by thinking differently and changing how we used to do things before Covid-19.

READ ALSO:   Nairobi house prices, rents drop

Thanks to this, we have continued to provide our customers with even more offerings in terms of value additions to our projects. It is during this period of Covid-19 when we decided to put our efforts towards GoingGreen in most of our projects. Matter of fact, we have surprised our customers by further transforming our projects through installation of green energy, massive tree planting, and installation of water recycling systems, encouraging plot owners engage in farming of organic foods and subsequently feed their families from their previously idle plots. Significantly, we also changed from use of Kenya Power electricity in our projects to the use of solar energy on almost all amenities and by so doing, we have now managed to save millions of shillings in terms of KPLC bills. Most importantly, we are glad that we are now fully plugged on the green energy agenda.

All along, the company has continued to flourish through innovation, partnerships, massive philanthropy activities and even more importantly, a commitment to always entrust all our undertakings to God.

We are glad that we are consistently realizing our vision of being pacesetters in social economic transformation through opportunities such as job creation that have a positive multiplier effect on the society.

READ ALSO:   Nairobi house prices, rents drop

Guided by the same vision, we always dedicate 5% of what we make in business and channel it to the less fortunate through a registered foundation viz Optiven Foundation. We have hundreds of orphans whom we support to go through school. We also support the physically challenged to get free wheelchairs and support girls to access schools. The Foundation also cares for over 300 families and helps them to get food daily.

Indeed, we at Optiven exist to economically and socially empower and transform the society.

#ChangingLives
#EyesOnTheCommunity
#CreatingJobs
#GoingGreen
#HousingKenyans

Contact Optiven Group:0790 300 300
Email: admin@optiven.co.ke Website: www.optiven.co.ke George Wachiuri Blog: www.georgewachiuri.com
YouTube: https://bit.ly/2VdSuFJ


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How I made my first million

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At what age did you make your first million? 

I was 19.

How did you make it? 

I was running a creative design and printing agency. I bid for and won an order to design and print marketing materials for a global NGO which has offices in Kenya.

How did you spend or invest it? 

I re-invested most of it into the business by buying more machinery to reduce costs associated with outsourcing. I also set up a new business with a friend – a movie shop in Nairobi CBD.

The biggest money mistake you have ever made? 

Setting up the movie shop was the greatest money mistake – but I picked up two of the greatest business lessons. One, to never divest too early, and only invest in a business you understand well.

What is the best investment you have ever made?

 I would say investing in myself and in my exposure through travel. Travel has made me see endless possibilities for innovating new products, business models and solutions in the African market. A combination of the international exposure and strong local market understanding is priceless.

What is the worst purchase you have ever made? 

The movie shop. I bought a ready business that I did not understand and it went crumbling down. We eventually closed it a few months later.

READ ALSO:   Nairobi house prices, rents drop

If you had a spare million or two, where would you invest it right now?

I would invest it in my current business – a software technology company. This is because I believe the business has potential to become a great success.

What is the biggest money lesson you have learnt about growing it and making it work for you? 

Initially, we all have to work for money. However, I have learnt that the wealthy person has learnt how to make money work for them, through consistently investing what one earns.

Where do you learn about finances? 

I read a lot of books about real success stories from entrepreneurs because I believe entrepreneurship is a great way to create wealth, while creating value in the society. I also stay curious to learn about different investment vehicles because I know I shouldn’t put all my eggs in one basket.

Any financial myths you think should be busted? 

Money is not the root of all evil; greed may be. Money is a good thing because it can create freedom and prosperity, if well spent.

What two personal finance rules do you follow? 

Live within your means; and work to make money as a tool to accomplish real goals. Real goals are not just about making “enough” money, because it is almost impossible to define “enough.”

READ ALSO:   Nairobi house prices, rents drop

Investing or saving…Which one carries more weight?

Investing. However, they go hand to hand as saving to invest is acceptable.

One can get rich easily… but how does one stay rich? 

By constantly making calculated investment risks, and always striving to be wealthy, not rich.


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Business

LET’S HOLD HANDS WITH OPTIVEN FOUNDATION

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By helping someone achieve their dream,
You are well on your way to achieving your own dream!

Together with partners like you, the Optiven Foundation is changing one life at a time, by reaching the most vulnerable and meeting their needs. Because the needs are growing daily, we are open to hold hands with you and make our world a better place. Make your donation to Optiven Foundation via Paybill 898 630, Account name: Mobility

For more info, call us on +254 718 77 60 33 or info@optivenfoundation.org
www.optivenfoundation.org
#TransformingLives
#RestoringDignityof Senior citizens
#SharingHopewithOptiven


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Special Offer: Own one starting at Ksh 3.7M


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