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The housing bubble in Kenya has burst with a loud popping sound

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Pay a visit to Athi River, Kitengela and other peris urban areas and see ghost Estates rotting away with no habitation and developers sinking in debt they can’t pay.

Visit the hub, notice it’s half-empty. The tenants in it are paying half-rent currently to coax them into staying so as try attract others.

Building is not the problem, selling off what you have built to make your money back is the current problem.

The Delta company did 400 housing units in Sasaki, they struggled like crazy to sell.

Concurrently, they duty Delta in Westlands and they are happy to host COG as their biggest tenants.

The owner swears he’ll never touch housing estate ever again. He learnt his lesson.

The housing need is far from being met. But, we are not having housing development that’s affordable to the very masses that need it.

Cytonn investments rode on selling to the diaspora population.

It’s quickly getting saturated and waking up to the reality that one spends KSh 20 million on a house in Syokimau to rent it for KSh 50,000.

In such case, it takes 33yrs to just get your money back, by that time you are dead and have never enjoyed a shilling worth of profit from the house.

READ ALSO:   SPONSORED: Tujibambe Mombasani Na Optiven #IssaCoastPlan

Comments:

– Its only in Kenya where you buy an apartment at KSh 30 million and rent it out KSh 80,000 per month and rarely get a tenant

– Yep. The bubble poped. The prizes must be re adjusted for affordability. Now housing finance is on a 30% discount campaign.

Unfortunately, it’s a marketing gimic. They have to go down by 40-50% in reality. Developers were making over 100+% in profit. They have to settle on a realistic 20-30% mark up. Or 100% loss.

– The problem with the real estate developers is…they seem to target the upper and the middle upper class of customers …develop a product for the mass market and you will sell.

This can work out if the government subsidises building materials or scrap off taxes ..to make the end product affordable (which is impossible coz we are a young economy)Otherwise building in Kenya is Damn expensive.

– The government is inflating land prices with the current 4% stamp duty on land. It’s a tough call for our children.

– Developers need to face reality,

1. Kenyas Economy is rotten and getting more rotten by the day.

2. Kenyans even in the diaspora are very aware of ROI…if it doesnt make sense then they dont even touch it.

READ ALSO:   SPONSORED: Mahiga Homes Directors embark on a meet-the people tour of USA [VIDEO]

3. Days for developers to make 100% profit are gone…gone kabisa.

There are also cheaper methods of construction now.

Stealing money in Kenya is also becoming very difficult..the small guys who used to roll this money down to the mwananchi are now being caught ..no illegal money flying around anymore…

As a realtor biggest problem is developers refusing to listen especially in Nanyuki where I am based.

– That estate location matters so much, I was in a term building some apartments in Kitengela each cost KSh 15 million, yet some 2KM away is a prime land selling KSh 1.5 million.

I freely advised a buyer to go buy the land and build a good house worth 5M and get something running with the rest of his cash.

– Am seeing some KSh 11 million houses in Nakuru, hao watalilia kwa choo, kwanza the kanyumba is worth KSh 3 million surely ati coz it’s gated, nkt sick joke

– REAL ESTATE Is Just A Front To Launder/Clean Illegally Acquired Cash,,Can Never Work Out Where 70% Population Earns 3Dollars Wages A Day,,!Q

– Many a times I don’t advice my clients to buy offplans, sometimes one ends up not getting a dream of his /her life..though it depends with the company one intends to…..allways good to buy a plot and built the dream of your life house!

READ ALSO:   VIDEO: Kenyans in US among those heading to court after 'Banda Homes' fails to deliver as agreed

– Most companies are targeting the rich, very few Kenyans can meet their demands of pay KSh 500,000 today and clear the balance of KSh 1 million within 3 months.

What is crippling the Real Estate branch is Greed and lack of government control as far prices are concerned.

-In Germany for example, there are Rules and Regulations pertaining to renting and construction issues.

As a landlord/lady you just can’t demand any amount of money just because it is your house.

The price depends on Location and Square Metres in Question.

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PHOTO: What was happening Today at Amani Ridge the Place of Peace

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We thank God for the ongoing works at Amani Ridge the Place of Peace in Kiambu.

Today we were focused on the following works:

1. Cabro laying ongoing. (Cutting in progress)

2. Wall of Knowledge column and coping concrete in progress.

Do you want to join this Family 👪 of untold peace?

Commit today before change of price by 20% by the end of this month (12 days to go)

What was happening Today at Amani Ridge the Place of Peace

Call us on: 0790300300 or 0723400500
Website: www.optiven.co.ke

READ ALSO:   SPONSORED: Tujibambe Mombasani Na Optiven #IssaCoastPlan
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Behold – Installation of Elevated Water Tank at Victory Gardens Phase 3, 4 & 5 Starts in Earnest

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The much awaited day is finally here with us. The promised elevated water Tank at Victory Gardens Phase 3, 4 & 5 has kick-started in earnest.

This 40, 000 litres capacity tank will stand 15m tall and will effectively offer a round-the-clock assurance of flowing water to the residents of this top gated community in Kitengela.

Tune in to our FB Live this coming Friday (You can like this page in advance: https://www.facebook.com/georgeoptiven/) to know more about this project as we all inspect the new water tank installation progress.

Indeed, the works on this leading project is now coming to its tail-end as all other value additions are already complete. These include:

✅ Murraming
✅ Water piping
✅ Three Phase Transformers on site (Two of them)
✅ Trees planted
✅ Gardens with fruit’s
✅ Optiven Drive access Road
✅ Solar street lights (covering the whole project)
✅ Manned gates by Uniformed Security

If you want to join this ready-to-build gated community, call us Today on:
Call 0790300300
www.optiven.co.ke

READ ALSO:   SPONSORED: Tujibambe Mombasani Na Optiven #IssaCoastPlan
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Soaring like an eagle & unleashing your full potential

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SOARING LIKE AN EAGLE & UNLEASHING YOUR FULL POTENTIAL are two powerful motivational books that will easily inspire you to pursue your dreams.

100% of these books’ sales proceeds are channeled into Optiven Foundation’s charitable activities that are geared towards social-economic empowerment of communities across Kenya.

You can participate in this noble cause by getting your own copy today at only Ksh1, 000 or USD 10.

Call us on: 0718 776 033
For more information, visit: www.optivenfoundation.org

READ ALSO:   WACHIURI: Top 5 Tips On How To Positively Dominate And Influence
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