According to the Kenya National Bureau of Statistics, the number of households in Kenya was over 12 million in the 2019 census. This number of households has led to an increase in the demand for rental houses.
This blog explains the reasons why Kenya is a good place to invest in real estate. Whether you want to invest in residential, commercial, industrial, and or Airbnb business, Kenya is the right place to do so.
We are a dedicated Kenyan site where we offer to support local investors in achieving their investment goals. We can start by helping you list your investment property on our site for free.
Keep reading to learn more about investing in the Kenyan real estate market.
Benefits of Investing in the Kenyan Real Estate Market
The government has put in place policies that make it easy to get financing for rental housing projects. These policies make life better for both landlords and tenants. As a result, the rental business in Kenya is booming due to favorable laws.
There are many reasons to invest in rental houses in Kenya. One of the most important reasons is the location. Kenya has beautiful weather and stunning scenery. It is a perfect place to raise a family or retire.
The Kenyan coastal region is suitable for investing in the Airbnb business due to its tourist attractions. In addition, the country has wildlife that attracts tourists. Therefore, it's possible to set up Airbnb in areas near Tsavo, Maasai Mara, Lake Nakuru, and others.
Favourable climatic conditions in the country are also a good reason to invest in Kenya. There is no extreme summer or winter, making it a suitable location to grow a home.
2. Economic growth
Kenya is a developing country. As a result, it has room for more development.
Kenya's economy has been growing steadily in recent years, and this is expected to continue in the coming years.
Whether you are a local or a foreign investor, the Kenyan real estate market is the place to start your investment journey.
The Kenyan people are business oriented, meaning there will always be demand for more commercial properties.
This makes investing in rental houses in Kenya a good idea, as there is a growing demand for rental properties.
Several factors drive Kenya's economic growth, including strong agricultural production, a growing tourism sector, and a growing manufacturing sector.
We expect this growth to continue in the coming years, making Kenya an increasingly attractive investment destination.
Investing in rental properties in Kenya is a good way to generate income, as there is a growing demand for rental properties. With Kenya's economy expected to continue growing, now is a good time to invest in rental properties in Kenya.
The Konza techno city will come with undeniable investment opportunities. As a result, many people will come to search for jobs in the city, hence increasing demand for rental properties in the area.
3. Increased demand for rental properties
The COVID-19 pandemic has led to an increased demand for cheaper rental properties as people look for more affordable and secure housing options. In Kenya, this has resulted in a sharp increase in rental prices and a decrease in the availability of rental properties.
Kenyans seem to understand money management, and they are doing the best they can to save money. That's why most are after affordable rental houses.
Therefore, if you build affordable rental properties in cities like Nairobi, Mombasa, Nakuru, and Kisumu, you will attract more renters.
Investing in rental properties can be a great way to generate income and build wealth, especially in a market with high demand and limited supply. If you're considering investing in rental properties, now is a great time to do so.
4. Government policies
The government introduced Real Estate Investment Trusts (REITs), which are specialised companies that allow investors to pool their resources and invest in large-scale real estate projects.
In 2021 the Kenyan parliament passed the Landlord-Tenant Bill that protects rental properties in Kenya. That proves that the government is keen on rental property operations, which should favour both landlord and the tenant.
Therefore, you should not fear dealing with stubborn tenants in your rental property, the law has something for them.
Overall, the government policies in place are very favourable for investors looking to put their money into rental properties.
5. Rental income potential
The rental income potential is a great reason to invest in rental property in Kenya. The Kenyan economy is growing rapidly, which means that there is an increasing demand for rental properties. Additionally, the government is investing heavily in infrastructure projects, which is also driving up demand for rental properties.
You can start mixed-use developments, which ensure you have both residents and commercial tenants. In addition, such developments improve an area because more amenities are available.
Kenya has a young population. Therefore, there is hope for more demand for rental properties as the youth search for greener pastries in urban areas. Additionally, we expect the population to grow significantly over the next few years, further increasing demand for rental properties.
6. Cost of Living
Compared to other neighbouring countries, the cost of living in Kenya is relatively low, making it a good choice for retirees. In addition, the cost of materials is also cheap, with stones, timber, and sand locally available.
The Bottom Line
Kenya is a great country to invest in real estate. In addition, the country has young and ambitious people who understand digital marketing. Therefore, you won't break a sweat finding the best marketing personnel for your real estate business in the country.
If you want to start investing in Kenya, we have the best locations to yield more returns for you. You can see our listings to see which you can afford.
Frequently Asked Questions
Why is Kenya a good investment place?
Kenya is a developing country, which gives it more room for investment. In addition, the population is also growing, which shows that there will be more demand for housing and other essentials in the future.
What type of real estate should I invest in Kenya?
You can try either commercial property or mixed-use developments. People like to stay near marketplaces where they can access basic staff easily. That's why mixed-use developments serve in residential areas.
Is it worth investing in Kenya?
Yes. Investing in Kenya is among the right decisions you will make in your lifetime. Business in the country is always booming due to high population growth and ambitious minds. The youthful population in the country also makes it a good shot to invest in the Kenyan real estate market.