Kenyans are raising investment funds to increase property development and keep up with the growing demand for housing.
Project managers are rallying investors within the construction industry to finance projects reportedly running into the millions. In a unique move, the group’s holistic approach will mean investors, project managers and construction companies working together.
Kenya’s housing deficit is currently 150,000 units, with an actual construction figure of 35,000 units per year, leaving a high demand for housing, especially in the low to mid-range market. However, some experts in the country believe that this type of group financing will stimulate the generation of large-scale real estate development for low- and middle-income families.
Current statistics from the Ministry of Housing show that nine out of ten projects are developed for the high-end market, leaving the middle and low income sectors practically discounted.
Joe Macharia, CEO of Bora Capital, commented, “Half of our investment will go into multi-family housing targeting middle-income individuals.” Lobby chairman Patrick Kariuki has indicated that satellite towns such as Athi River, Thika, Ongata Rongai and Kikuyu would be ideal sites for this particular type of housing.
Kenyan fund managers Genesis Kenya have stated that real estate developments in Kenya can offer higher returns compared to stocks and shares. Bora Capital stated that although it is a new concept without comparison, the project should bring about a much-needed increase in real estate investment in Kenya.
Obelisk offers clients opportunities to invest in several carefully selected real estate projects from around the world, including the most sought-after established regions and the most dynamic emerging markets.