Understanding Kenyan and diaspora real estate market trends

The Kenyan real estate market has always been a dynamic landscape, but recently, a new wave of players has entered the scene, Kenyans living abroad, or the diaspora. Amidst inflation, we take a look inside the real estate market trends. CNBC Africa earlier spoke to Stephen Mbugua, Acting CEO at Safaricom Investment Co-operative. The current real estate trends show a mixed scenario, with commercial properties experiencing a slowdown while residential properties witness a surge in demand, especially in urban areas like Nairobi. The trend has been attributed to factors such as rate hikes, inflation, and other economic influences impacting price movements. Inflation leads to higher costs for raw materials and reduces disposable income, squeezing both potential investors and consumers, thereby slowing down the growth in the real estate sector. When it comes to diaspora interest, there has been a marked increase in investments in the Kenyan real estate market. Diaspora investors often prioritize urban residential properties and high-return commercial properties, while local investors tend to focus on residential properties for personal use and rental income. Policies promoting tax incentives and a favorable legal framework can make the real estate sector more investor-friendly. Safaricom Investment Cooperative aims not only to provide real estate solutions but also to enhance the economic and social well-being of investors by adding value to properties and creating secure environments. Despite challenges such as fraud and lack of information, the outlook for Kenya's real estate market remains positive, with affordable housing initiatives providing opportunities for all investors and leveraging new technologies for growth and market penetration.