Categories of Real Estate in Kenya
In case you are interested to join the real
estate industry, it is important to have a guide and direction so that you can
determine where you feel suits your purpose. Real estate industry is diverse
and classified into various categories as we will see below. The industry is
quite old and new interested investors may not be aware of the different
categories that the industry plays around. Each of the different categories of
real estate industry has its own advantages and disadvantages but the goal is
to find which suits most of your purpose. Whether your purpose is owning,
flipping, renting out or developing it, the following are the different
categories of real estate investments intent;
Commercial Category
This category of real estate investment is
seen with the intent of generating profits or for business oriented activities.
This type of investment is mostly practiced to lease out to business owners
especially office spaces and skyscrapers. The goal is to pay for the
building-that is rent. It focuses on big companies and has stability in its
cash flows. Most of such buildings have conditions attached to them while being
rent out. They are commonly found in towns and centers that have a huge flow of
economic activities.
Industrial Category
This category of real estate investment
focuses on property that is used for production and manufacturing purposes.
Factories, warehouses and commercial buildings that are focused on production
process are placed in this category. They include; research centers,
development parks, warehouse as well as heavy manufacturing plant buildings and
property associated with industrial parks.
Residential Category
As the name suggests, this is the category of
real estate investment where property is focused for residential purposes
(living purpose). They include houses, apartments or townhouses with the
purposes of sheltering, whether a single family of a multi-family residential
sheltering.
Retail Category
This category is characterized with sizable
stalls that are mostly for business use. In Kenya, some of these are semi
permanent especially if outside the city while those around the city are
permanent. The owner may have direct interaction with the tenants or
alternatively hire an agent. They are mostly suitable for middle class earners.
Mixed Used Category
An investor can choose to have all the above
and blend them in such a way that they fit in one space. According to
commercial Kenya, mixed use complex is a development, a building, complex of
buildings that is developed for mixed use by a private developer or those who
combine the above four categories into one single project.
In conclusion,
Understanding your purpose of investment and
all the risks that are associated with them, it will be easier to plan on what
you need and how to generate profits.