A ruling by the High Court stopped the charging of single business permit fees on certain professions that includes Real Estate agents registered under the Estate Agents CAP.533. This is because charging such fees would amount to double taxation.
Since 2010, there are two layers of Government, National and County Government. The National Government does have its own mandates and levies taxes on some functions. However, some functions are levied by the County Government in areas where the services fall within the County and where there are no similar taxes levied by the National Government. Once the National Government levies a particular tax, the same cannot be levied by the County Government.
In Constitutional Petition No. 97 of 2016, The Kenya Pharmaceutical Association and Pharmaceutical Society of Kenya sought the Court’s intervention to prohibit County Governments from demanding, seeking or receiving applications for Single Business Permits or fees for such application or permit or license or otherwise from its members. The Judge explained the crucial difference between trade license fees and practicing license fees stating that the County Government is prohibited from issuance of Regulatory Licenses. The trade licensing fee is paid for trading in the County. The Judge further reiterated that the function of the County Government is trade development and regulation which excludes the regulation of professions which render services only.
In the Fourth Schedule to the Constitution, among the services devolved to the County Government is Trade Development and Regulation which includes:
(a)……
(b) Trade licensing (excluding regulation of professionals).
The County Government is therefore prohibited from issuing regulatory licenses for professionals under which real estate agents falls under.
What other professionals do not pay single business permits?
Blacks’ Law Dictionary 10th Edition at page 1903 defines profession as ‘A vocation requiring advanced education and training especially one of the three traditional learned professions – Law, Medicine and the Ministry.â€
Concise Oxford English Dictionary 12th Edition defines profession as ‘paid occupation, especially one involving training and a formal qualification.â€]
So registered professionals like accountants, surveyors, medical practitioners, engineers, accountants and lawyers may rely on court judgements not to pay the single business permit fees.
Do Pharmacies need to pay for single business permits?
Every pharmacy needs to pay for single business permits.
This was determined by J. Mativo in Petition 97/2016, the Kenya Pharmaceutical Association of Kenya Vs Nairobi County Government and 46 others County Governments. The court held that they are liable to pay trade licenses because they also sell pharmaceutical goods. The court said:
“Pharmacy is a profession but to the extent that it also involves selling of pharmaceutical products. It is a trade as opposed to a profession such as law or Architecture which render services only. By being asked to pay trade licenses, for their business premises, the County Government cannot in any manner be said to be regulating or controlling the profession.â€
Let us know anything we may have missed on the comment section below.
Real estate is becoming a very competitive field. You need to find a way to list properties available for sale. Beyond listing your land and houses for sale, buyers and sellers are expecting a lot more. To succeed as a real estate agent, you need to have something extra.
Several skills can give you an edge and help you make more sales. These skills will also set you apart from the competition.
Let’s read together based on my experience in the industry and what I have found to be important. You will also note that most of these skills are important in other industries as well. So, if you are not in real estate, you find these useful as well. Let’s get started!
1.Local area knowledge
Every real estate agent needs to have adequate knowledge of the area within which they are selling land or houses. If you know your locality, customers will learn to trust and depend on you for guidance. You will need to understand real estate regulations in Kenya. You also need to know of upcoming developments and other real estate agents in your area.
Real estate buyers prefer working with a real estate agent who is knowledgeable. This is because they are about to make one of the biggest decisions of their life. Customers are also about to commit a lot of money.
2.High Integrity and Trust levels.
Honesty remains one of the best skills to have as a real estate agent. Customers also expect you to show you can be trusted and honest. Thus, real estate customers rely on referrals from friends and family. Being dishonest, unethical and immoral can tarnish a career fast, and for good.
If you have a bad reputation, no real estate buyer will work with you. Reputation matters a lot in real estate. You need to maintain a good client base who can provide evidence of recent successful deals.
3.Technological skills
Technology advances every day. Therefore, you need to leverage technology to your advantage by being technological savvy.
As a real estate agent, you need to understand how to use social media to sell real estate. From posting to WhatsApp groups and Facebook or showcasing your real estate on Instagram. You can take things to the next level by having a website.
If you do not have a website, then you do not need to worry. Various listing websites are available with some being available for free.
4.Resilience
Real estate is a tough field. On average, most real estate agents complete a few sales within the year. If you are not resilient, you will not manage to stay long in the field. As an agent, following up on leads requires constant calling and checking on your leads before they convert. Following up on every lead is crucial in achieving success in real estate.
You will need to have a way to keep track of leads. Having a notebook is a good starting place. Else, invest in an automated system.
Successful real estate agents do not wait for clients to call them. They keep a check on all appointments, meetings and showings themselves. They are also flexible and will adjust their schedule if the client requests.
5.Passion
To succeed in anything, you need to have passion. Real estate is no exception.
For real estate agents, passion involves enjoying speaking and taking clients to site visits. You also need passion to help people. This is because you will need to support clients make decisions that are best for them.
6.Teamwork and networking
In real estate, your network is your net worth. If you work alone, you will find customers hard to come by. Referrals remain the way most agents find business. If you do not have a large network, then you will sell less and be unable to find success. Teamwork involves you also providing other real estate agents with referrals and leads.
For any career, building your network and reputation is important for success. If you’re a local agent serving a small market, getting involved with the community can be a great way to build your brand. By engaging with the community, you can become the ‘go-to estate agents in the area.
7.Negotiation skills
Most buyers start their real estate journey online. With a lot of information being available online, buyers have more information than before. With a more knowledgeable client, negotiation skills are becoming important for real estate agents.
The crucial lesson to remember about negotiating is that your goal is not to win, but to get a deal done. To do that, you will have to come up with a solution that will satisfy both the buyer and the seller.
8.communication skills
People prefer to work with people they get along with and like. Buying and selling properties is no different. To have a good rapport with real estate buyers, you then need to have good communication skills.
Good communication skills help to create a good relationship with customers. It also helps to enhance your level of professionalism. You need to be available on most communication channels like email, Skype, WhatsApp, or text messages. You should also be quick at replying to your client’s messages.
You don’t only communicate with the buyer but also the seller during negotiation. In some cases, you’ll need to communicate with your colleagues. Other real estate agents will give you advice or guidance as you grow in the business.
9.Great marketing skills.
The real estate market is becoming more competitive. More real estate agents are joining the industry. To sell land or houses, you need to have great marketing skills. With the right marketing strategy, you can get more clients and referrals that will help you grow your business.
A real estate agent understands how rules and regulations apply to real estate. In Kenya, you need to understand the Estate Agents Act, The Land Act, Rent Restriction Act and tax matters as well. You need to understand how these affects real estate.
As a real estate agent, you must guide your customers in navigating through all the regulations and not mislead them in any way. Most homeowners are unaware of real estate laws when they buy or sell a house. They depend on a real estate agent to guide them through this complicated process.
There are many skills a real estate agent should have. The above skills are the core skills that will make a successful real estate agent. The effective implementation of these skills will help you have a great and rewarding real estate career. These skills are important whether you’re starting out or already a professional.
Real estate is always a tough market. There are thousands of properties for sale in the area, and a shortage of buyers. This can be from all the competition or from the fact that people don’t know how to find properties they’re interested in. Either way, getting your property noticed can sometimes be difficult. With these tips, you’ll be able to catch the eyes of potential buyers.
1. Use good SEO practices
Search engine optimization, also known as SEO, is the secret to getting your listing prioritized and seen. Thorough keyword research is necessary for this. This helps users utilizing an online search engine to find listings to focus their search. Choose the right keywords or phrases to precisely describe your listing so that the target audience will find it in search results.
Online real estate listings are a great way to get noticed, and they’re free! These sites will allow potential buyers to see all the properties you want them to see. These free real estate listing sites like Premier Agent are very useful and it’s a good idea to at least have a profile on one of them. To really get the most out of these websites, you’ll want to edit your listing regularly and respond quickly to any messages you receive through the website.
Do you have professional photographs of your property? Great! They’re an invaluable tool in selling your property, and they can help attract a lot of traffic to your listing. If you want to really get the most out of these pictures, though, you might want to consider doing a virtual tour of your property. In addition to taking pictures, a professional photographer will be able to film footage inside the property and offer it for viewing on websites like YouTube, where people can see homes in motion and make comparisons between different properties. These videos are an excellent way to get noticed online, and they’re all free!
https://www.youtube.com/watch?v=sEgyd_VqrXA
4. Share your listings on social media
Social media is quickly becoming one of the most significant components of digital marketing, offering great benefits that allow businesses to contact millions of people around the world. If you are not using social media to sell today, you are stuck in the past. If you can find a way to use social media, your property has a great chance of getting noticed. To begin, you can use your personal Facebook or Twitter accounts to inform your friends and family about your real estate listing. Focus on developing a great marketing campaign and release it on Facebook or Instagram.There are social media marketing tools that can help you run your pages. You will benefit from increased online visibility and interest from potential buyers. If you need help Digital Marketer will help you run all your social media accounts.
5. Know Where Your Audience Is
If you’re going to get your property noticed, you’re going to need an audience. The best way to find out who might be interested in seeing your home is to find out who’s already looking for properties like yours. This can be done through websites that offer free information on the demographics of different neighbourhoods in the area, as well as through online forums dedicated to selling or buying properties of a particular type. Take some time to read up on all these sites and see how you can use them to sell your property.
Getting your property noticed, especially in such a large market, can be difficult. You will need to improve your marketing efficiency as much as possible for this. In addition, while addressing a potential client, we will want you to be as professional as possible.
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As real estate agents, we are trying to convince our customers to buy the properties we have. Whether we are selling land or selling houses, learning how to get others to buy is important.
Here are 10 ways to persuade others to buy from you.
1. Be willing to take a deposit.
Real estate is one of the most capital-intensive business ventures and investments. At times, most customers do not have enough money to buy the property outright. These customers could be willing to complete the sale if given more time.
Providing the customers the ability to pay in installments spread over time could be a way to get them to buy. You may provide a 3, six or 12 months repayment period when selling land. When selling houses, a longer period may be ideal as buying a house need much more money.
2. Create a fear of missing out.
The world’s properties are all distinctive in some way. Although this may not be obvious to a buyer. There are always things you can do to make people think your property is “one in a million.”
Let the customer know the number of inquiries you have been receiving on the property for sale. You can also identify why the price, size and location are hard to find. Let the customer know that there have been many inquiries.
Let the customer know of any new developments that make buying the property a good deal. When dealing with land for sale, explain upcoming developments. These include roads, schools and police stations. This helps to explain the potential price increases to the customer.
When selling a house, explain factors like the growing presence of Airbnb. This will help the customer see how the house can fetch income if listed on Airbnb. Let the customer know of opportunities like furnishing the house and letting it.
4. Be Responsible in Your Transaction
When buying and selling properties, there are laws to follow. Do not be in a rush to sell and then skip some of these steps. These steps include conducting due diligence, signing agreements or making a down payment. If legal support is needed, do not hesitate to let the customer know.
You may gain very little by speeding your purchasers to shop for a property. Create trust and let the buyer understand that you’re operating in their best interest. See things from the customers perspective. This way, you can recommend properties that best suit their wants. That way, customers feel valued, and they’ll appreciate you a lot.
6. Talk from expertise, bank on your information
A broker’s business relies on experience. A buyer would need to make certain that you have sound information. When speaking to customers, back your conversations with facts. you must be ready to state different aspects of the property you’re pitching to them.
I have spent hours of my life freely sharing information (take this blog, for example). People can tell when someone is being helpful even if there isn’t a direct financial benefit. If you put this into action, you’ll discover that it’s not hard to find people who can assist you when you’re in need.
8. Show your authority
Credibility and the capacity to show your expertise are both prerequisites for authority. Because there are so many “wanna-be experts on the internet. These “wanna-be” agents talk big but have no experience or outcomes to back them up.
Having enough expertise is crucial. You don’t have to be an expert, but you do need to understand the subject at hand.
Create a well-designed website to further build your brand. A website helps build confidence in the people about you. This increases success as you can show evidence that you can be trusted.
9. Become Reliable and Likeable.
Once you’ve gained commitment, follow up with customers. You can do this by reminding them of your agreement. When trying to sell a house, these are some of the greatest leads you may pursue.
We are much more likely to say yes to people we like, and the fact is we tend to like people who are similar to us, who make us feel good, or who help us achieve what we’re looking to do. Build this with your customers so that they can call you back.
10. Ask for reviews and recommendations
It is a good practice to ask for feedback, once you have closed the deal. If you have a website, ask a satisfied customer for their recommendation. These reviews may be the difference that shows your experience and service quality.
Conclusion As with any other form of sale, you must have the authority to sell the property. You then need to know how to convince a homebuyer to make a deal. By following the steps above, you can sell the property easily.
Kenya has an annual housing demand of 250,000 units with an estimated supply of 50,000 units. This leads to a huge deficit in housing. This deficit and the growth of the middle class have led to increased demand for quality real estate.
Nairobi takes a huge chunk of this deficit. This presents an opportunity to make good returns on real estate.
Most landowners do not have access to capital to develop their vacant land. But, we have developers with capital, but not enough to buy land and build on it. This is because the prices of land available for sale in Nairobi have sky-rocked in the last few years. It is becoming difficult for both land owners and property developers to develop Real Estate Projects.
This is where joint ventures come into play. A joint venture is a business arrangement under which two or more parties come together to undertake a project. This leads to the parties pooling their resources together.
Today I share some of the locations which are “hot spots in Nairobi†when it comes to Joint Ventures. While the spots are all good for investment, the attractiveness varies. Some factors relied on include factors like location, size and terms offered.
In Nairobi suburbs, most joint ventures have taken the form of gated communities with stand-alone units. In the list of joint venture hotspots below, flats are preferred. This because flats use less surface area of land is during construction. This allows for several housing units can be constructed within a small land size.
Now, let’s dive into the 10 most profitable joint venture locations in Nairobi.
1. Parklands.
The name parklands arise from the proximity of the area to City Park, Nairobi. During Kenya’s colonial days, the British demarcated the area as a residential neighborhood for civil servants. During the 1940s and 1950s Parklands was one of the most congested suburban areas of the Nairobi metropolitan area.
Currently, Parklands has become synonymous with the Asian community. Parklands’ proximity to Muthaiga Mini Market, Westgate, Sarit Centre, Diamond Plaza, and the Village Market add to its affluence. Most joint ventures in this area have been mixed commercial/residential buildings.
Rent ranges from Ksh 30,000 for a one-bedroom apartment and Ksh 150,000 for a 3-bedroom apartment. For property for sale, a one-bedroom apartment can go on sale from Ksh 8M with a 3-bedroom fetching upwards of Ksh 20m.
2. Kilimani
Kilimani is home to Nairobi’s newest buildings and beautiful skyscrapers. The estate is located approximately 4 kilometers, away from the Central Business District. In the past, this estate was dotted with multiple single dwellings. The old houses and bungalows are coming down to give way to apartments and tall buildings. Kilimani has become more populated thanks to the rise in commercial property, retail space and residential houses.
Rent ranges from Ksh 50,000 for a one-bedroom apartment and Ksh 150,000 for a 3-bedroom apartment. For property for sale, a one-bedroom apartment can go on sale from Ksh 8M with a 3-bedroom fetching upwards of Ksh 20m.
3. Pangani
Pangani is a leafy, upper-middle-class neighborhood in Nairobi. It is made up of mainly single-family homes, with some high-rise apartments and townhouses. In Ngara, the government is trying to put up several affordable housing units.
Due to its proximity to Nairobi CBD and ease of transport Pangani developments will always be in demand.
4. Westlands
Westlands was majorly a residential neighborhood during the colonial period for the then well-to-do society. In the early 2000s, land for residential and office space purposes in Nairobi’ CBD became exorbitantly priced. Most companies with their headquarters in the CBD started moving.
Westlands became one of the better options for businesses owing to its urban feel, cheaper land rates and proximity to the CBD. Soon after, the real estate in Westlands grew, attracting not only businesses but the residential market as well.
Westlands enjoys proximity to major international organizations like the United Nations and the African Union. Demand for housing and land will always be there in this neighborhood.
5. Lavington.
Lavington is one of the major suburbs with high-end residential mansions. The neighborhood radiates peace, calmness, and tranquility. With the presence of different schools, a variety of restaurants and fun activities to do with family and friends, Lavington is bursting with so much personality.
6. Kileleshwa
Kileleshwa suburb has its name fleshed from Leleshwa, a Maasai word for a tree dominant in Naivasha.
Located approximately 5 kilometers from the Nairobi CBD, Kileleshwa is one of the lushest estates in Nairobi County. Most housing units are flats, maisonettes, and gated communities.
7. Upper hill
Construction has seen a major upswing in this area in recent years, dotting the neighborhood with skyscrapers. In 2017, for instance, work started on the tallest building in Africa. Upper Hill is a busy neighborhood with restaurants filled with office workers and bars with people winding down after a long day at work.
8. South B and South C
South C lies next to Wilson Airport and is bordered by South B to the East, Langata Estate to the west and the Nairobi National Park to the south. Here, houses here are in high demand due to the estate’s closeness to the Nairobi CB. Rentals in South C are quite pricey vs other Nairobi estates along Mombasa Road.
South C has all kinds of residential units such as single rooms, bedsitters, one-bedroom, and two-bedroom apartments that are for rent and sale, maisonettes and gated communities. Most housing units are maisonettes and gated communities.
South C is inhabited majorly by Somalis, although other Kenyan ethnic tribes can also be found within the estate. It houses people from all walks of life too e.g. Business leaders, expatriates, students, etc.
9. Eastleigh
Nairobi’s Eastleigh neighborhood hosts one of the largest ethnic Somali communities outside Somalia. The largest population is Kenyan Somalis as well as Somali nationals. Other communities flock to this area for business. Whether during the day or at night, Eastleigh has always been a burst of activity.
Eastleigh has become an important center of Somali diaspora life and a hub for a trust-based trading community that operates across East Africa and into Asia and the Middle East. Demand for commercial real estate is at an all-time high with importers particularly in textiles setting up shop here.
10. Ngong Road
Ngong road neighborhood is one of the most sought-after neighborhoods in Nairobi. Ngong road is especially known for its malls, commercial buildings, business and car dealerships. Commercial rentals earn more than residential rentals.
Ngong road has always been one of the richest neighborhoods in Kenya. The recent road expansions have just enhanced the appeal.
Conclusion:
The benefits of forming a real estate joint venture in Kenya include several advantages for the business partners. These benefits could include the ability to scale the venture rapidly; the ability to combine the skills and resources of the partners; the potential for economies of scale; the potential for leverage; and the ability to take advantage of economies of scope.
There are different types of properties to choose from when venturing into real estate joint ventures. There are houses, apartments, commercial buildings, and even teaming up to sell vacant land. Each type of property has its advantages and disadvantages. So before investing, make sure you know what kind of property you want to invest in.
These above neighborhoods are generally in high demand and you have a good chance to close a deal when you target them. However, do not ignore other areas for joint venture opportunities in Nairobi. Our advice is to give these areas 80% of your energy to improve the chances of success.
Selling a house can be a daunting process for many people. It’s not just about finding the right buyer, but also about having the right price and location. However, selling a house does not have to be a daunting and drawn-out process.
You need to have a good understanding of how much the house is worth as you price it for sale. You can do this by looking at the selling price of comparable properties that are on sale within the same neighborhood.
Most home owners and real estate agents get the temptation to overprice the house so as to get a tidy profit or commission. This strategy may lead to the house staying on the market for a particularly long time before someone offers a price on it. On the other hand, if you under price, it may be taken as if the house has an underlying problem.
2. The location and Neighborhood.
Location is the first thing every potential buyer considers and so should you. This goes in line with the old saying that the property market is all about three factors. Location, location, and location. If the house is in a good neighbourhood, then it might be easier to find buyers and sell it faster than if it’s in an area with poor infrastructure or crime rates are high.
Factors such as accessibility, schools, traffic, shopping malls among others have an impact on the suitability of the house to potential buyers. Some of the top amenities people are looking for when buying a home include malls, grocery stores, restaurants, shopping malls and entertainment spots. If a house is close to a major highway or public transport, this helps too.
You need to review the condition of the house and identify any repairs that need to be done. Review if repainting needs to be done. If painting is needed, do ignore this as it goes a long way to sprucing up a house.
If the house needs major renovations, then these should be done before placing the house for sale. This is because if a customer comes and notices items needing repair, it’s hard to call them back even if you do the repairs. If a few upgrades are needed, go ahead with these as little upgrades won’t cost you much but can bring you bigger returns.
On the compound, ensure this is well taken care of. Ensure you trim any overgrown hedges and if the compound has trees, cut overhanging branches. Ensure also that the grass is cut with a few well-done flowers in front and in the backyard.
4. Marketing.
When deciding to sell your house, decide on whether you want to handle the sale yourself of you would like to have a real estate agent do that for you. Although you may understand the real estate market, it’s probably not a great idea to try to sell your home on your own, especially if you haven’t done it before.
In the past, I have tried some of my properties, but I found that I had to turn away customers who called when I had other commitments.
If you turn away a client who wants to view the house, there is a good chance you will not hear from that buyer again. To maximize your chances of selling, consider hiring a real estate agent. There is a good chance they move on and start viewing other properties in the neighborhood.
Real estate agents promote your house for sale in mediums where in their professional judgement feel it will get the most exposure. This can include on various social media platforms, listing websites, as well as traditional print marketing like flyers and billboards ensuring your property receives maximum exposure.
It’s a fact that close to 90% of property searches begin online. You will be failing if you don’t have high-quality photos of your home. Poorly taken photos could show the house as needing repairs when it’s in top shape. Invest in a phone with a good camera and take quality photos. Good photos should be clear and taken during the day when there is plenty of natural light available.
5. Economic Conditions.
The prevailing market conditions impacts a person’s ability to buy or sell a home.
Even if your home is in excellent condition, located in the right neighborhood, the number of other properties for sale in your location when compared to the number of potential buyers in will impact your home value. In markets where there are a lot of buyers looking to buy the few available homes is a seller’s market. In such a market, it’s easier to sell your house. It also makes it possible to sell the house for a good price.
A market with few buyers but many homes on the market is referred to as a buyer’s market. If you’re selling in a buyer’s market, you may have to adjust the price to attract more offers.
Real Estate is one of the easiest yet the most profitable industry one can venture in. Though it’s not easy to sell a property, ones you sell you are promised of a tremendous impact in your business transaction. It also presents a chance for economic growth and social development in a certain area. It’s a dream for every real estate to make high profits from the investment, and if this is the case, we have identified several factors that you should consider before putting up your property on the market.
1. Price
Pricing your property too high or too low can chase away your potential buyers. If for example, a house is highly priced and does not match such a value in reality, clients may not be able to afford it or may consider it unworthy. If the house is low priced too, it may raise clients’ eyebrows on what could have been a problem with such a home and maybe scared away from such property It’s therefore very important to know the value of your house. When setting up a price to your property it is important to understand the market competition in your neighborhood. The other thing you could do is hiring an agent. A real estate agent will help you in setting the price and in selling of the property because they have an experience in the industry. Here is a simple guideline on how to price your home for sale
2. Supply and demand
It’s important to consider all situations in the market because there are some that favor the selling of a property while others don’t. Real estate, like other assets is subject to supply and demand. When the demand is high the price rises. When supply is low, the demand for the limited properties goes up and the prices of the properties increase as well. This means that selling that selling similar properties when there is an oversupply or when the demand is too low will not in any way favor you. It will therefore advisable to wait for the right market condition to avoid making losses from your properties.
3. Marketing strategy
We are living in an era where potential buyers are not only looking for a good listing but also listings that are captivating. Technology has changed everything for better. There so many popular sites where buyers search for the properties without necessarily doing a physical visit but chances are you are not on all of them. It’s good list your properties on these sites to ensure that you are tapped into the largest pool of buyers. There are top 7 real estate listing sites and agencies in Kenya that you can consider listing o. some are free and other are paid. The other thing you can consider is social media marketing. If used rightly, Social media is a very powerful tool that can bring remarkable success to your real estate business. It helps you reach a wide range of audience within a very short time but you must consider these tips to make sure your properties stand out in the market. The main point is not listing on many sites it’s about how you showcase your properties. Make sure you have taken high quality professional photos that will grab attention of the many buyers scrolling through different websites
In addition, we have rolled out a map-based search feature that allows you to search for property on a map. This provides you an ability to compare prices with properties within a similar range to arrive at a better value for your money.
4. Government policies
Did you know that all land is government owned? It’s the government that is responsible for tittle deeds issuing, transfer processes and all policies of selling and buying a property are government base. The government can offer incentives to accelerate real estate industry. For instance, the government can provide credit that allows more people to afford property and thus drive prices upwards. Through infrastructural development like roads, sewer, electricity connections, the government can make a hitherto underdeveloped area a prime area for real estate growth.
5. Property Tax
One thing you should never forget before selling the property in the property tax Just make sure you have paid up all the taxes due on your property before putting it up for sale. If you do not want to pay them yourself, then at least make sure that the buyer pays them when he buys the property from you. Also, important to note, changes in taxation can either enhance to decrease investor appetite. If for instance the government raises the capital gains tax, less people would be willing to sell property while fewer people will afford the resultant property prices. If the government allows higher mortgage relief, this may lead to an increased uptake.
Always ensure that the property tax receipts are regularly updated and in perfect working condition so that they can be shown to the new owner. Learn real estate taxation from Land rates, Land Rent, Income tax, Capital Gains, stamp duty and VAT.
When buying property land in Kenya, location is one of the important factors to consider Importance of location in real estate purchase always seem most underestimated yet it is what translates into profitability for the investment. The Hass consult has revealed most profitable areas you can invest in land and have high returns within a very short period of time. Despite the high prices, the occupation is also high and this provides an opportunity for investors looking to put up rental apartments or put up houses for sale. There so many best places to invest in real estate in Nairobi.
These are the most profitable areas in Nairobi suburbs that you can consider investing in.
Karen is a high-end neighborhood in Nairobi located approximately 16 km South West of the Nairobi CBD. It was predominantly a residential area but relaxation of zoning regulations has seen an increase in commercial developments, the most notable ones being The Hub Mall along Dagoretti Road, Galleria Mall at the junction of Magadi and Langata Road and the recently opened, Karen Waterfront along Langata Road.
In terms of land for development, Karen remains relatively affordable for developers in the high-end market. During the first quarter of 2021, an acre of land in Karen was selling at Ksh62.8 million. As the year came to a close, the same acre of land was selling at Ksh64.4 million – indicating a Ksh1.6 million spike.
2. Kileleshwa
Kileleshwa is one of the oldest estates in Nairobi, a middle classs suburb to live in. Kenton College, an international primary school, is located here. There are no supermarkets but dukas sell essentials such as fresh fruit, bottled water, toilet paper, painkillers, milk and bread. The beautiful Nairobi Arboretum, which is popular with families and prayer groups on Sunday, divides Kileleshwa from the city centre. Investors looking for high return investment avenues have an opportunity here. An acre of land rose from Ksh231.3 million to Ksh232 million
3. Muthaiga
Muthaiga is about 2.5 miles northeast of Nairobi City Center. On the north, it is largely surrounded by the Karura, the city’s largest urban forest. Limuru Road and the Mathare River are on the southern side, and the Thika Super Highway and Kiambu Road are on the east. Six Parklands Avenue form the western border. It is Nairobi’s most-affluent neighborhood, offering Privacy and lush landscapes. Some of Kenya’s wealthiest business owners live in this area with close proximity to the city center. it’s a very prime place those with wealth and social standing want to own property.
Muthaiga indicated an increase of Ksh3.7 million (from Ksh185.7 million to Ksh189.4 million).
4. Parklands
Parklands, is a neighbourhood in the city of Nairobi, the capital and largest city in Kenya. It is divided into numbered avenues. The name arises from the proximity of the area to City Park, Nairobi.
Parklands indicated an increase of Ksh9.9 million – with the price skyrocketing from ksh 375 million to ksh 384.9 million.
5. Nyari
Nyari is a suburb located at Red Hill Road, Red Hill Drive ,Nairobi. Its the on of the best areas you can consider investing in
Nyari was the best performing suburb with prices increasing by 7.18 per cent
6. Spring Valley
Spring Valley is located beyond Westlands and it is a beautiful neighbourhood surrounded by trees and a natural environment. Local amenities are convenient and accessible to residents with shopping centres, sporting venues and entertainment spots in close proximity. The roads are well-maintained and most of the developments sit on mature gardens that are ideal for those who enjoy the peace and serenity that Mother Nature provides.
Spring Valley recorded the highest price increase in the final quarter (2.2 per cent).
Upper Hill is a district of the city of Nairobi, with several multinational corporations setting up offices. In the 2000s, as land and office space became scarce and exorbitantly priced in the central business district, businesses relocated to Upper Hill and Westlands, where land and office space were more readily available and less expensive. Today, Upper Hill possesses a new modern skyline that is still being filled by modern skyscrapers of different and prestigious designs in the architectural world
An acre in UpperHill is the most expensive in the city at Ksh509.7 million
8. Westlands
Westlands is located approximately 5.9 km North-western of Nairobi CBD and is accessible via Chiromo Road. The area is surrounded by upper middle-income neighborhoods such as Parklands, Riverside, Kileleshwa and Spring Valley it is one of the most vibrant and fastest-growing districts in the upmarket area of Nairobi. The area of focus is well endowed with both infrastructure and amenities such as good roads, hospitals, education institutions, shopping malls, restaurants, and financial institutions. It is is well developed and connected, hence the demand for land is high whiles the supply is limited.
Westlands had an acre of land hit Ksh191.1 million in December 2021 from the initial price of Ksh30.3 million in December 2007.
9. Langata
Lang’ata is a predominantly middle-class residential suburb of Nairobi. It lies southwest of the city’s central business district, east of karen, approximately 18 kilometers by road, from the centre of Nairobi. The suburb consists of many smaller housing developments, estates which include Nairobi Dam, Otiende, Southlands, Ngei, Jambo estate, Onyonka, Madaraka Estate, Kutch Prant, Rubia, NHC Langata, Akiba, Sun Valley, Royal Park and many others. These developments are primarily maisonettes or apartment blocks. Wilson Airport, the largest private airport in Kenya, is found in Lang’ata. Strathmore university,the Nairobi japanesse school main campus of catholic university of east Africa and brookhouse school are found in Langata. It is fairly a good place for real estate investment
Langata recorded an increase in prices gaining 6.1 per cent from ksh63.7 million an acre in 2020 to Ksh67.6 million last year
10. Kilimani
Kilimani is an affluent neighborhood in the city of Nairobi. State House Nairobi, the official residence of the President of Kenya is located in Kilimani, on State House Road. Kilimani Primary School, Milimani Primary School, St Hannah’s School, St. Nicholas School, St Christophers School, Cavina School are all located in the neighborhood .The Lyce Denis Diderot, the French international school, is in Kilimani. Adam’s Arcade is the oldest shopping centre of its kind in Kilimani, Nairobi, Kenya, as well as East and Central Africa as a whole. The Nairobi Arboretum, featuring more than 300 exotic and indigenous tree species, is located in Kilimani, adjacent to State House
The land prices in Kilimani per acre have changed from 114M in 2011 to 385M in 2021 and its currently at 413.1M. The significant change has been brought about by the development of infrastructure and social amenities in the area.
However, the report indicates that the satellite towns have had land values increase 9.61 times since December 2007, compared to Nairobi suburbs where land values have increased by only 6.32 fold despite being the priciest. The satellites includes, Ruaka ,that recorded the highest land value where an acre costs an average of Ksh89.1 million followed by Kiambu town at Ksh39.3 million, Mlolongo Ksh31.4 million, and Ruiru Ksh26.9 million. These are the area that you can also consider owning a land
Real estate association is an industry body of agents and brokers that unite for the purpose of effectively exerting combined influence upon matters affecting real estate industry. The association can also provide trainings to other estate agents, seek to influence the government, produce market research, and operate multiple listing services for the benefit of its members. Real estate associations operate as independent organizations with a budget and leadership approved by the members. Starting a real estate association is very easy. You can start as informal gathering and grow it to formalized arrangement with officials and membership dues and later have permanent staff.
Associations are registered under the Societies Act in Kenya by the Registrar of Societies. This is the procedure of registration.
1. Name Search: Have an official name search and secure the proposed name of the association. A name search is conducted to ascertain if proposed names are available for registration. This is a guideline on how to conduct the association name search.
2. Visit the offices of the Registrar of Societies in the Registrar General Division of the office of the Attorney General to make the application for registration. Here you will be given application forms to make the application.
3. Drafting of the Constitution. Preparation of the proposed constitution of the Society. A guideline is provided in the Act
4. Submit your application documents, society’s constitution, required documents and application fee of Ksh.2000 payment receipt to the office of registrar of societies.
Requirements for registration of a real estate association.
i. A list of designated members ( 10 members minimum);
ii. The names, occupation and postal addresses of the officials Chairman, treasurer and secretary;
iii. Constitution of the society which must contain name, postal address and objects of the society;
iv. Application form A and B each in duplicate signed by three of the officers.
v. Copies of the ID, PIN and Passport photo of the officials.
vi. Application fee of Ksh. 2000
The processing of the application takes a maximum of 120 days to be ready. If the application is approved a certificate of registration of the association is then issued. If the application does not comply with the societies rules a Notice of refusal is issued.
Every registered society shall furnish the Registrar annually, the annual returns of the previous year by filing in the prescribed form and at a prescribed fee based on the number of members of the society.
The Registrar of Societies office is located in sharia House, Harambee Avenue, Nairobi. For more information call +254-2-2227461/2251355 /0711 9445555/0732 529995 or send an email to [email protected]. You can also check their website on https://www.statelaw.go.ke
Online marketing is one of the most extensively used ways for selling real estate. When it comes to marketing your listing as a real estate agent, you must be inventive. When marketing your real estate listing in a competitive market or with distinct properties, it is important not to simply repeat specifications and features. Develop a unique skill instead.
Developing innovative ideas will help you stand out in a field where new marketing techniques are constantly being introduced, allowing you to sell your property more quickly. Here are some inventive ways to advertise that difficult listing that you’ve been trying to close a deal on if you have a problematic listing that continues accumulating more days on market.
1. Find a professional real estate agent
If you want to sell your home faster and with a better price, find a real estate agent and a good real estate agent . Real estate agents are well educated and they know the whole property process. They will help you understand today’s real estate values when settling the price for a property listing. The agents have creative marketing strategies which will help your property to be seen by many people and sell faster. Also read ultimate guide to hiring a real estate agent in Kenya.
2. Incentive program for referrals
Start building a list of people you can trust to provide you great referrals if you haven’t already. Consider the kind of job responsibilities and professions that interact with your target market on a daily basis. If you specialize in selling new homes in your community, you may include marital counsellors, financial experts, and mortgage bankers on your list. We know a good referral incentive should draw customer and motivate them to refer others.
Video is, without a doubt, the most powerful marketing tool a real estate agent can utilize to create more leads and sales. Video was once considered a luxury, but it is now the most important tool for successful real estate agents. You will undoubtedly agree that trust is essential in real estate. Gaining a client’s trust and demonstrating one’s integrity is required when assisting them with the purchase or rental of a home. Videos can be utilized to highlight not only the property listings, but also the agent’s qualifications and accomplishments. As a result, potential buyers are more likely to trust you. When you read on the Ultimate guide on how to take real estate photos, you will have a better understanding on how to make your property video footage.
4. Mentally re-list the property
You may need to mentally re-list a difficulty listing from time to time. Making it appear as if the property is back on the market is sometimes a good strategy. It’s also good to come up with inventive strategies to persuade your sellers that they need to upgrade their home or drop their selling price.
5. Manage the process Carefully.
It’s important to control the selling process from the start, ensuring that sellers have reasonable expectations. After 30 days on the market, they may have to drop the price if they want to sell their house as-is without making any modifications. Alternatively, they may need to engage in house modifications if they want to sell their property quickly or at a certain price
6. Don’t give up on a difficult listing.
Put the property back into the marketing cycle once you’ve persuaded the sellers to make upgrades or drop the selling price. To keep the listing, you may need to provide a marketing plan for your property for it to sell fast. It’s difficult to turn around a property, whether you’re trying to buy or sell it, especially in a buyer’s market. However, don’t give up on a difficult listing. Remember you can still sell that difficult listing property successfully.
Bottom Line
Selling a property can be stressful, but it can be made even more so if you’re on a tight schedule. Unfortunately, there are ways you can speed up the process, whether you’re selling because of a new job, relocation or family issues. I f you are looking to sell your property that is taking longer than expected to sell, you can visit our website and list your properties for free or find a real estate agent among our thousands real estate agents who can help you sell your property.
