The property market in Kenya is slowly taking shape after the adverse effects of the Covid-19 pandemic that hit the world in 2020. The pandemic jeopardised most properties in Kenya, as many people left urban centres for their rural homes due to unemployment.
The Kenyan property market is growing and adopting new technology changes that help the sector grow. This blog unveils the prediction of the next 5-10 years in the property market in Kenya. We will uncover the potential opportunities and challenges that every realtor should take note of them.
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What To Expect in 5-10 Years in The Property Market in Kenya?
1. Artificial Intelligence (AI) in The Property Market in Kenya
Artificial intelligence is the new talk in town, with the latest being the GPT( Generative Pre-trained Transformer. GPT can interact with humans by answering their questions. The good thing is that search engines like Google have incorporated AI-based search results that answer the searchers' intent.
That means a potential buyer searching for the best houses in Nairobi will not have to go through multiple sites to get the best houses. Instead, the AI-based search will bring property listings to the top of the search results.
This technology affects the real estate websites listing properties in Kenya. That's why these websites should focus on creating content that answers the searcher's intent. And if it's a transactional post like property listings, they should bring the best listings that would attract Google AI.
It will be an added advantage for the sites whose properties appear on top of the searches because that will mean more conversions in terms of revenue.
On the other side of AI, Chatbots help communicate with website visitors as they await customer care. Chatbot is a great tool to incorporate into the real estate website since they can be an excellent way to capture potential clients.
AI will change how people browse the internet and make purchase decisions in the next 5-10 years in the property market in Kenya.
2. Economic Factors
Not only in Kenya but the world's economy has also been affected by the pandemic and the Russian-Ukrainian war. The Kenyan shilling has dramatically lost its value against the US dollar. The current rate is Ksh.138.15 as of 5/24/2023. This is very high compared to Ksh.100 per dollar in the last three years.
The Kenyan economy has been among the strongest in the East African community, but it's now growing weaker daily. According to the CBK report on inflation in Kenya, we are currently at the highest average annual inflation of 8.71%.
These statistics show that the price of commodities will keep on rising if nothing happens. That doesn't leave the real estate market in Kenya. If the Kenyan shilling grows weaker, properties will sell for more money to compensate for their value.
If the Kenyan economy remains terrible, the next 5-10 years will have very high prices of properties in the country. The current properties will sell for more, hence high profits.
However, new properties will have a less profit margin due to the high cost of construction materials. But that should not scare you from budding properties in Kenya. As you all know, land is an appreciating asset that can never reduce the price.
3. Smart Homes
Technology is taking over in every industry, including real estate. A smart home is a set up with electronic devices that the homeowners can control from anywhere in the world, with a simple internet connection.
This new technology is becoming popular in high-end properties in Kenya. And it will not stay long as homebuyers start searching for smart homes.
A smart home includes a security system that owners can access from anywhere, which enhances faster response in case of a security breach. A smart home comprises appliances such as a home theatre, temperature moderation, lights, fridges, etc.
Almost all homebuyers would like a home with ready cameras(visible) and active security systems in the coming years. Therefore, it's high time for real estate investors to learn to incorporate the Internet of Things in their properties to stay relevant in the next 5-10 years in the property market in Kenya.
4. Buying and Selling Property
Buying and selling of property will change in the next 5-10 years as technology advances. For instance, the marketing of properties will take a new form as search engines have added AI into their search results to improve user experience.
Users will get more targeted results on search engines that will help them get whatever they need. A good user experience means more sales for the properties. Therefore, real estate agents should create excellent listings that satisfy users' intent.
Furthermore, social media is another tool that buyers will use to search for property recommendations in Kenya. Therefore real estate investors should build their social presence to sell more.
5. More 3D House Models
3D house models will flood the property market because homeowners would like to have a glance at their new homes. As a property seller, it's important to have 3D house models that guide the constructors in what to do.
In the next 5-10 years, realtors should include 3D house designs in the property tour video. A 3D design will help the homebuyer understand the house in detail.
What Are The Opportunities For Real Estate Investors in Kenya?
Real estate investors should focus on growing their portfolios to fit the booming property market with emerging technology. As a realtor in Kenya, you can benefit in the following ways in the next 5-10 years.
- If you incorporate new marketing strategies with AI in mind, you will sell more through AI-based searches.
- 3D house models will help you develop high-end properties with high market demand.
- You can leverage the Internet of Things and include them in your properties to pose unique features for your properties in Kenya.
What Are The Challenges For Real Estate Investors in the Next 5-10 Years in Kenya?
- The property market in Kenya is not streamlined due to current economic factors such as inflation.
-It's costly to include the Internet of Things to make a smart home, though it may pay up once you sell or rent the property.
-Investors will dig deeper into their pockets when searching for new property investments in the country.
The Bottom Line
Real estate is a booking market, but sometimes, supply exceeds demand due to several economic factors, such as the high cost of living. However, real estate remains less volatile than the stock market or cryptocurrency.
If you want to invest in real estate, the right time is before prices increase significantly. We will guide you to make sober investment decisions that will help streamline your property business in Kenya.
Forecasting The Next 5-10 Years in The Property Market In Kenya: Frequently Asked Questions
Will house prices increase by 2030?
The simple answer is that properties usually increase value. Therefore, the prices will increase by 2030. However, the increment rate depends entirely on economic conditions between 2023 and 2030.
Is 2023 a good time to invest in the Kenyan property market?
We would say that every time is a good time to invest in a property that will eventually bring money or appreciation in a few years. So, 2023 is a good time to invest in the Kenyan property market.