East Africa property market to weather storm as price volatility remains

Real estate firm IndigoHomes is making significant strides in the East African market after a successful venture in Ghana. The company is enthusiastic about delving into Kenya's relatively untapped middle-income market. However, challenges such as high input costs, new taxes, and escalating steel prices raise concerns about the viability of the property market in the region. In an exclusive interview with CNBC Africa, Chris Coulson, the Chief Executive Officer of IndigoHomes, shed light on the prospects and challenges facing the real estate sector in East Africa. One of the key themes highlighted in the interview was the importance of sustainability in development projects. IndigoHomes has been at the forefront of sustainable practices, incorporating innovative technologies like aluminium foam work and PV systems for street lighting to enhance energy efficiency and reduce waste. The company's commitment to sustainability extends to local procurement practices and exploring off-grid electricity solutions to minimize its environmental impact. Affordability emerged as a crucial factor in the East African property market, with inflation rates remaining high and squeezing household budgets. Coulson acknowledged the industry-wide challenges posed by increasing building costs, rising steel prices, and financial constraints but emphasized IndigoHomes' unwavering commitment to delivering high-quality products despite the cost pressures. He stressed the importance of maintaining quality standards throughout their projects, from design to construction, to uphold the brand's reputation and ensure customer satisfaction. Looking ahead, Coulson shared insights into IndigoHomes' expansion plans and investment outlook in East Africa. With successful projects in Ghana and the recent launch of Woodley Park in Kenya, the company aims to diversify its product offerings and explore more affordable housing options while maintaining its quality standards. Despite the economic uncertainties, IndigoHomes remains optimistic about its future prospects in the Kenyan market and envisions undertaking multiple projects over the next few years to solidify its presence in the region. The real estate sector in East Africa faces challenges amid price volatility and cost pressures, but IndigoHomes' strategic approach to sustainability, quality, and affordability positions the company as a key player in the evolving market landscape.