Bridging Africa’s housing deficit

Kenya’s real estate sector is seeing a mix of performance as government policies on affordable housing face challenges. Despite this, private developers like Mwenda Thuranira, the CEO and Founder of MySpace Properties, remain confident in the potential of the property market. Thuranira, in a recent interview with CNBC Africa, provided valuable insights into the current state of the real estate market in Kenya and across East Africa. Thuranira highlighted the impact of external buyers, particularly the diaspora buyers taking advantage of the strong dollar against the shilling. This influx of buyers has fueled movement in the real estate market. Additionally, affordable mortgages at a 9% interest rate for 25 years have attracted buyers, both those looking to invest cash and those seeking mortgage options. The CEO of MySpace Properties emphasized the demand for both residential and commercial properties in the market. Developments like the Sand Park project in Siokimau, catering to low and middle-income housing segments, have seen significant uptake, especially properties below 10 million Kenyan shillings. Thuranira noted that Nairobi remains the leading location for property uptake, followed by other key cities like Mombasa, Kisumu, and Nakuru. Regarding land as a key asset class that has recorded double-digit growth, Thuranira explained how land appreciation drives property pricing and development costs. The CEO mentioned growth opportunities in emerging areas outside Nairobi, such as Kadyando and Dika site, resulting from ongoing urban expansion. Thuranira's dedication to bridging the housing deficit within African capitals was evident as he discussed the importance of government-private sector collaboration in facilitating affordable housing solutions. He stressed the need for streamlined mortgage financing to boost real estate development and homeownership across the continent. Looking beyond Kenya, MySpace Properties is eyeing expansion projects in East Africa, including countries like Uganda, Tanzania, and South Sudan. Thuranira mentioned plans for commercial real estate ventures in these regions, with significant investments allocated for projects like My Town Karen and the development of 50 My Town Malls across Africa. As the real estate sector faces challenges like property glut in certain segments, Thuranira remains optimistic about the market's resilience in the face of economic fluctuations. He emphasized the value of real estate as a stable investment, especially in times of currency fluctuations. In conclusion, Thuranira's insights shed light on the dynamic real estate landscape in East Africa, emphasizing growth opportunities, the importance of financing mechanisms, and the potential for market expansion. Despite existing challenges, the sector continues to attract investment interest, driven by the growing demand for diverse property offerings and the intrinsic value of real estate as a long-term asset.