daily menu » rate the banner | guess the city | one on oneforums map | privacy policy | DMCA | news magazine | posting guidelines

Go Back   SkyscraperCity > Continental Forums > Africa > East Africa > Kenya > Projects, Construction and General Discussion > Business and Economy

Business and Economy Our business, economy and other related discussions



Global Announcement

As a general reminder, please respect others and respect copyrights. Go here to familiarize yourself with our posting policy.


Reply

 
Thread Tools
Old March 15th, 2009, 01:21 AM   #1
Kisumu Ndogo
美国: Rep KE
 
Kisumu Ndogo's Avatar
 
Join Date: May 2007
Location: @penguins.nhl.com ☆☆☆☆☆
Posts: 3,604
Likes (Received): 47

Kenya | Real Estate and Housing Sector

This thread is dedicated to the boom in property (Real Estate) construction and lease in Nairobi and Mombasa and the fears/promises that might arise in future.

Kenya’s new property kings
By DAVID OKWEMBAH Posted Saturday, March 14 2009 at 22:01
In Summary

Influx of questionable foreign cash distorts real estate market and threatens to push ordinary people out of the housing sector
Money from abroad and Somalia shakes real estate sector, especially in Nairobi
Money from Kenyans living abroad and war profiteering in the region has flooded into the Kenyan property market, leading to a doubling of prices for land and houses and steep increases in rents, real estate experts say.

They attribute this trend in part to demand by non-Kenyans, most of them from war-torn Somalia. The areas most affected are Nairobi, Mombasa and other major urban centres where the price of land has more than doubled as property is sold long before it is ready for occupation.

And the increase in prices has not only affected upmarket areas but low and middle-income residential neighbourhoods as well. Findings by the Sunday Nation follow investigations by international security agencies that have discovered that millions of dollars reaped from piracy along the Somali coast and drug trafficking are finding their way into Kenya and other parts of the world through an intricate money-laundering scheme masterminded by international criminal syndicates.

The money-laundering, which also involves proceeds from tax evasion, has focused the attention of international security agencies on Kenya, which is being seen as a regional hub for the illicit activities. Areas of Nairobi most affected by the rise in property prices include Karen where the cost of an acre of land has jumped from about Sh5 million three to five years ago to at least Sh15 million today.
At Kilimani, an acre of land now goes for a staggering Sh70 million, with property valuers and conveyancing lawyers warning that the situation could get out of hand unless checked.

At Parklands, an eighth of an acre sells for Sh50 million, while at nearby Eastleigh, a similar piece is going for between Sh20 million and Sh25 million. Rents have also skyrocketed. In congested Eastleigh a two-bedroom flat that went for Sh10,000 two years ago is renting for Sh25,000 a month today.

At Nairobi West, a three-bedroom house was renting for Sh25,000 two years ago; today the rent is between Sh30,000 and Sh38,000. Real estate experts and lawyers say that much of the money that has flooded into the market comes from Kenyans, including Kenyan Somalis, living outside the country.

And some comes from businesspeople who have fled conflict in Somalia, the Democratic Republic of Congo and Burundi. Many properties in upmarket Nairobi areas including Karen, Upper Hill, Kilimani, Lavington, Westlands and Parklands have changed hands at prices that in the recent past would have been considered outlandish.

Investigations by the Sunday Nation have established that the cost of 10 acres at Karen, which had been put on the market for at least Sh4.5 million an acre, was recently raised to Sh6.5 million when a Somali national made inquiries.

A Kenyan, who also asked not to be identified, was eyeing a property on Kirichwa Road in Kilimani, Nairobi. The bungalow on a quarter-acre of land had been advertised for Sh25 million. It was eventually sold for Sh35 million.


In Nairobi’s Upper Hill area, next to Hill Park Hotel, a prime property recently changed hands and has undergone thorough renovation. It was not possible to determine the cost; the building is now being leased as an office block. In the city centre, two prime plots, one on Loita Street and another next to the Uchumi supermarket near Koinange Street, are also said to have been bought by foreigners.

Timothy Njehia, managing director of Crystal Valuers, told the Sunday Nation that property in Nairobi has appreciated by more than 100 per cent in the past three years. “Remittances from the diaspora have spurred the market and pushed up prices of property by more than 100 per cent,” he said.

The skyline of Eastleigh, a former residential estate, has changed markedly in the past decade as multi-storeyed buildings replace single-level dwellings. “Somalis have pushed the prices of property to an all-time high in the past three years because price to them is not an issue,” James Katana of Green Leaves Properties, Mombasa, said.

He claimed that Somali nationals have taken control of major estates in Mombasa, like Nyali, Tudor, Old Town and Kizingo. “They are even demolishing most of the properties they are buying and building flats which they are converting into apartments and budget hotels.” He said most of the foreigners, mainly Somali nationals, buying properties in prime areas of Mombasa and Nairobi acquire them through proxies.

But a city lawyer involved in conveyancing, who spoke to the Sunday Nation on condition that he be not identified so as not to jeopardise some of his transactions, also attributed the rise in prices to remittances from Kenyans abroad and non-secured local bank loans. He said the increase in prices seen in areas like Eastleigh, Parklands, Kilimani, Nairobi West and Lang’ata was at least in part due to change of use determined by the city council from residential to commercial.

He said First and Second Avenues in Eastleigh have been converted from residential to commercial use, pushing up property prices on the two streets. He said the Somali and Asian communities in Kenya were well known for their entrepreneurship, especially in property conversion. But he did not say whether those buying were Kenyan nationals.

The lawyer said this was also true for Parklands, especially the road that runs from Forest Road cutting across to Highridge shopping centre. He said property prices along this road have more than doubled in the last five years as residential areas are converted to commercial use.

He said the same was true for properties on Ngong Road, Argwings Kodhek and Lenana Road, all in the Kilimani area. While the majority of properties in these areas were residential, they have now been converted into multi-family dwellings, and office and business premises.

Mr Njehia said that in areas like Kilimani, Kileleshwa and Lavington, the cost of building apartments has gone up. But he also suggested that the global credit crunch could soon hit the local property market. The valuer said the local market has started to experience stagnation since the beginning of the year when overseas Kenyans stopped remitting money.

“There is stagnation in the properties market, but the magnitude can’t be measured at the moment,” he said. A banker who cannot be named as he is not authorised to speak to the media, said banks had financed the cost of an estimated 500,000 houses since President Kibaki took over power in 2003.
But he cautioned that with rising inflation, many Kenyans who secured mortgages might start experiencing difficulties servicing their loans. He suggested that as many as half these houses might be repossessed because of inflation spurred by the global credit crisis.

International security agencies are also said to be concerned about the less-than-transparent acquisition of petrol stations and other businesses.
__________________
isupporthekenyancountygovernments

Last edited by Kisumu Ndogo; August 24th, 2009 at 04:20 PM.
Kisumu Ndogo no está en línea   Reply With Quote

Sponsored Links
 
Old March 15th, 2009, 04:24 PM   #2
Kisumu Ndogo
美国: Rep KE
 
Kisumu Ndogo's Avatar
 
Join Date: May 2007
Location: @penguins.nhl.com ☆☆☆☆☆
Posts: 3,604
Likes (Received): 47

Nairobi Designs
Southlands apartments, langata-Nairobi, Kenya
image hosted on flickr

(c) Kenguy
Jabavu Adventist Apartments, Hurlinghum Nairobi Kenya
image hosted on flickr

(c) Sam O
Njema Court
image hosted on flickr

(c) zedascouves

Westlands; Nairobi
image hosted on flickr

The Citadel
image hosted on flickr


image hosted on flickr


Mombasa
image hosted on flickr

(c) carring10's
__________________
isupporthekenyancountygovernments
Kisumu Ndogo no está en línea   Reply With Quote
Old August 6th, 2009, 01:57 PM   #3
SE9
South East Nine
 
SE9's Avatar
 
Join Date: Apr 2005
Location: London
Posts: 25,296
Likes (Received): 14276

Kenya courts a new clientele - Financial Times

Kenya courts a new clientele
http://www.ft.com/cms/s/2/70b2e8a4-7...44feabdc0.html
July 25th 2009


The fashionable village of Shela on Lamu

With its well-run game parks and white sand beaches, Kenya, in east Africa, has long been a popular destination for well-to-do European holidaymakers. Luxury property purchases were not always on the agenda but, following a push by the Kenyan government to court upscale development and an increase in the number of flights from Europe to Nairobi, that appears to be changing, especially on the stretch of Indian Ocean coast from Malindi to Watamu.

Past the mid-market resorts that have dominated the area since the 1980s, there are now several high-end housing options, drawing a diverse group of buyers from Kenyan politicians to international names, such as former Formula 1 racing driver Gianni Morbidelli. One can still find one-bedroom apartments and two-bedroom houses in gated beachfront communities starting at about Ks12.5m (£100,000) and Ks22.5m, respectively. But there are also multi-million-pound villas and a clutch of new, more expensive resorts.

Sonia Irvine, sister of another former F1 driver, Eddie Irvine, and owner of the Amber Lounge events company linked to the F1 season, recently bought a four-bedroom villa at Medina Palms, a new group of 50 residences on six acres at the end of the mile-wide strip between the ocean and Mida Creek that is Watamu.

“I first discovered [the area] a couple of years ago; it’s a lovely resort with a stunning beach and has beautiful blue-green waters,” she says. Her development offers Arab-inspired architecture and eco-initiatives including solar-heated water, low-energy lighting and a turtle-watch programme. “I’ve bought a great plot of land with amazing views”, she adds. I plan to visit in the holiday season and friends and family will use the place too.”

Prices range from Ks22m for a large two-bedroom, 141 sq metre apartment to Ks181m for a six-bedroom, 938 sq metre beachfront villa.

Britons Nigel and Lesley-Anne Rowley, the developers of Medina Palms, live nearby in a four-bedroom property called Dhow House, which they designed and built themselves. This is another increasingly common phenomenon in Watamu, as foreigners purchase older colonial-style properties built in the 1960s, demolish them and build on the site.

As a result, prices on beachfront land have increased five-fold in the past decade. Yet they remain relatively reasonable. Discoverwatamu.com lists a two-acre plot with a small main house plus guest residence and large pool located 400 metres from the main beach at Watamu Marine Park for Ks24m, as well as a four-bedroom house overlooking Mida Creek for Ks116m.

At the recently completed Amani, a four-bedroom house that sold off-plan for Ks43m in late 2007 is now being offered for Ks86m, while the hotel-linked Turtle Bay Resort has 25 apartments with off-plan prices starting at Ks23m. “For many of our hotel guests, owning a property here is an extension of their holiday dreams,” says Turtle Bay general manager Damian Davies.

Local agent Ivor Engel confirms the demand. “There’s a genuine 42-week rental season locally; at Christmas and New Year and the main summer, Easter and half-term holidays, Watamu is so busy people book a year in advance,” he says. “There are [also] many embassy and [non-governmental organisation] workers in the region, who are keen renters, and the local market – from Nairobi, Tanzania and South Africa – is strong.” As a result, more are buying property and “prices have been rising 20 per cent a year for the past five years [with] little sign of a slowdown.”

The area is helped by an airport, located halfway to Malindi; good sanitation and electricity supply and friendly locals.

Beautiful as its coast is, Kenya is not without its troubles. Civil unrest flared in early 2008 – although not specifically in the Watamu/Malindi area – and while the formation of a coalition government has restored peace, tourism has suffered, with visitor numbers dropping from more than 1m in 2007 to about 730,000 last year. But the government has responded with an economic development plan, Kenya Vision 2030, that calls for high-quality development in both coastal and interior regions.

Giovanni Parazzi, a former Nairobi advertising executive who has lived in Watamu for the past 20 years, argues that the latest projects in the area could be the way forward for the rest of the country. “There’s a lot of pressure from new development that the infrastructure and environment can’t support [so] what we need is more high-quality eco-projects like Medina Palms raising the bar,” he says.

Rowley says she’s happy for her development to serve as an example. “We are doing all we can to ensure we develop responsibly, with great awareness of the need to tread lightly in what is a beautiful part of the world.”

. . .

Lamu, a tiny island off the north Kenyan coast, is known for its remote location and low-key, laid-back atmosphere. New development is rare and residents still get around by donkey or on foot.

Yet the island cannot seem to avoid the celebrity spotlight. It featured in Barack Obama’s second memoir, The Audacity of Hope; Princess Caroline of Monaco has three homes there; and it has recently been cited as the holiday destination of choice for stars such as singer Sting, artist Tracy Emin and actor Ewan McGregor. Has the island environment fallen victim to the buzz? Hardly.

“I first came to Lamu when I was 11 and I remember being captivated by the bright kanga and kikoy cloth, walking along the miles of empty and unspoilt white beach collecting shells with my mother and dodging donkeys in town,” says Caroline Pulver, a financial market development consultant based in Nairobi. Today, “the waterfront and main street are busier [but] nothing else has changed and I don’t think it will. You can’t drive a car down a street that is only as wide as a donkey.”

Andrew McGhie, 42, a Londoner who moved to Lamu six years ago, agrees. “Credit-crunch Britain or America don’t figure on Lamu’s radar, unless it’s that people are coming to escape it,” he says. “It’s a world away, a complete antidote to stress and being busy.”

A former publisher, McGhie moved to the island to write a book about historical figures who had fled there, including the late 19th-century Freelanders, Europeans who sought to create a socialist utopia but descended into debauchery, disaster and death, and Latham Leslie Moore, thought to be the illegitimate son of King Edward VII and grandson of Queen Victoria, who ended his days in a Lamu beach hut.

But McGhie soon found himself distracted by property, especially the distinctive Swahili Arab architecture in Lamu Town, which blends Arabian, Indian, Persian, African and colonial European influences. After buying and renovating his own traditional townhouse – which had a title deed dating back to 1918 – he founded Lamu Island Property, which specialises in selling and restoring similar houses, with help from local artisans.

“Building here is sometimes maddening but it is very rewarding to find an ancient near-ruin and restore it to how it might have appeared during Lamu’s golden age several hundred years ago,” McGhie says. “Lamu Town is the oldest existing Indian Ocean trading port [and while] other towns along the coast, from Somalia down to Mozambique, have either fallen apart or been modernised, Lamu has stayed intact. It has exactly the same layout and buildings as 500 years ago. People often say [it] reminds them of quieter parts of old Marrakech or Islamic Cairo. The feel is much more Arabic or Moorish than African – an interesting, ramshackle place of donkeys and drains, with buildings that look unadorned from the outside but lead inside to carved plasterwork, rich fabrics, painted beams and ornate decoration.”

Property prices in Lamu Town range from Ks4.2m (£33,000) for a place in need of repairs that would cost a similar amount to Ks23.6m for a restored Swahili townhouse.

More expensive is Shela, a fashionable melting pot of a village, where the Peugeot car family owns a large residence on the harbour. Here, a restored historic house will cost about Ks52.5m and the early 19th-century mansion built for the Caliph of Zanzibar is on sale for Ks78.7m through Lamu Island Property. “In Shela you find some of the most in-demand real estate in Africa, with properties costing more than Ks315m,” McGhie says.

Britons Leslie Duckworth and her husband, David Campbell, started their small property business in Shela nearly 30 years ago, restoring old houses. But they have since moved on to “the empty beaches” of Kizingoni, where they recently finished a new eight-home, 24-acre development. It includes the four-bedroom Pepo – with private beach access, a wrap-around dining terrace and a separate guesthouse – on sale for Ks78m and the six-bedroom Kazkazi, comprised of four towers set around an elevated infinity pool in large landscaped gardens and priced at Ks147m. All the properties are powered by wind and solar energy, constructed with local materials (including coral-block walls and mangrove and mangati roof beams) and furnished with accessories made in Lamu Town.

“Our clients are typically American, British, Irish, German and French, mainly wanting second homes in the sun that they rent out when they are not there, though one couple live [at Kizingoni] permanently,” says Duckworth.

An additional option for househunters is Manda, another of the seven land masses in the Lamu archipelago, five minutes away from the main island by speedboat. With an airport and a new desalination plant to provide fresh water, it is gaining favour, says Briton Rachael Feiler, who moved to Lamu five years ago to build and run the eco-village Diamond Beach with her mother, Helen. “Much of the beachfront has been bought up by wealthy Europeans ... and prices have shot up quickly,” she says.

They start at about Ks12m for one acre of land, while a luxurious three-bedroom villa on the beach will cost about Ks78.7m. Of course more modest accommodation is available too. “My mum and I live in mud houses with two rooms, a bathroom and a bougainvillea-covered terrace where we relax,” Feiler says.
__________________
-



-
SE9 está en línea ahora   Reply With Quote
Old August 7th, 2009, 11:02 AM   #4
Kenguy
Registered User
 
Kenguy's Avatar
 
Join Date: Dec 2006
Location: East Africa.
Posts: 8,210
Likes (Received): 554

Maybe one day I might own something there.
__________________
The African Renaissance.
Kenguy no está en línea   Reply With Quote
Old August 24th, 2009, 04:27 PM   #5
Kisumu Ndogo
美国: Rep KE
 
Kisumu Ndogo's Avatar
 
Join Date: May 2007
Location: @penguins.nhl.com ☆☆☆☆☆
Posts: 3,604
Likes (Received): 47

Real Estate in Nairobi Surburbia

Kabarnet Gradens, Apartments U/C



Apartments Hurlingam, Nairobi


Office Block, Parklands | Proposed


Kileeshwa 1-3 & Langata 2



Apartments, Kikuyu Town

www.abodekenya.com
__________________
isupporthekenyancountygovernments
Kisumu Ndogo no está en línea   Reply With Quote
Old August 24th, 2009, 04:31 PM   #6
Kisumu Ndogo
美国: Rep KE
 
Kisumu Ndogo's Avatar
 
Join Date: May 2007
Location: @penguins.nhl.com ☆☆☆☆☆
Posts: 3,604
Likes (Received): 47

Loresho Ridge Nairobi



More Apartments | Nairobi
__________________
isupporthekenyancountygovernments

Last edited by Kisumu Ndogo; September 26th, 2009 at 04:08 PM.
Kisumu Ndogo no está en línea   Reply With Quote
Old August 31st, 2009, 04:28 PM   #7
mwanamwiwa
Registered User
 
mwanamwiwa's Avatar
 
Join Date: Sep 2008
Posts: 10,403
Likes (Received): 833

New era in architectural design




Housing boom in Nairobi.

mwanamwiwa no está en línea   Reply With Quote
Old August 31st, 2009, 06:44 PM   #8
BUTEMBO21
Mutu ya Chuma.
 
BUTEMBO21's Avatar
 
Join Date: May 2008
Location: Under the Sun and the Moon
Posts: 39,830
Likes (Received): 2953

That is beautiful guys. My favorite architecture.
__________________
BUTEMBO21 está en línea ahora   Reply With Quote
Old September 16th, 2009, 01:28 PM   #9
mwanamwiwa
Registered User
 
mwanamwiwa's Avatar
 
Join Date: Sep 2008
Posts: 10,403
Likes (Received): 833



Profile

Syokimau is the fastest growing residential area and the latest suburb of Nairobi Metropolitan following decongesting the city of Nairobi compaign. It is part of Mavoko Municipal Council. It is neighboring Jomo Kenyatta International Airport on the south end and across from KAPA Oil Refineries along Mombasa Road. It is only 15 minutes from downtown Nairobi. Syokimau has grown from a few homes in 2002 to numerous estates, and exclusive Bungalows and villas. Land is fully serviced. Homes coming up in this prime land are mostly villas and masionettes each sitting on an ideal 100 x 50 ft plots.

Syokimau has several schools and probably one of the best private primary schools in the country. Notre Dame, Mt Sinai primary schools and Acacia junior academy stand well at the core of the suburb. Syokimau is only a few kilometers from major chain stores and other shopping convenience centers.

Property experts are predicting a rise in prices of residential properties in Syokimau with the completion of Mombasa dual highway in sight. Some are buying land and constructing houses in readiness for occupation as numerous businesses and industries are expanding along the modern dual carriage- Mombasa highway. Nearly all players in property business see the Mombasa Road stretch between Mlolongo as the hottest-spot in town.
Fuelling the demand are the prospects of the modern highway and construction of bypasses linking the road to strategic towns like Namanga—a border town. The area’s location in relation to the airport, the planned construction of five-star hotels, world-class entertainment facility and its relative short distance from Central Business District (CBD)are some of the key reasons real estate players are putting forth as the cause of rise in demand.

Institution of Surveyors of Kenya (ISK) and other leading realtors says the Mombasa Road Stretch to Athi River region has the best property prospects to anybody wishing to put up property either for personal occupation or for speculative purposes.

It is time to throw yourself in the ring - Call your Jambostar agents and you will be part of the latest housing boom in the country.
mwanamwiwa no está en línea   Reply With Quote
Old September 17th, 2009, 10:21 PM   #10
mwanamwiwa
Registered User
 
mwanamwiwa's Avatar
 
Join Date: Sep 2008
Posts: 10,403
Likes (Received): 833

Nairobi residential:






Apartments



mwanamwiwa no está en línea   Reply With Quote
Old September 21st, 2009, 08:36 PM   #11
Kisumu Ndogo
美国: Rep KE
 
Kisumu Ndogo's Avatar
 
Join Date: May 2007
Location: @penguins.nhl.com ☆☆☆☆☆
Posts: 3,604
Likes (Received): 47

Great Job Mwanamwiwa.

__________________
isupporthekenyancountygovernments

Last edited by Kisumu Ndogo; September 26th, 2009 at 04:26 PM.
Kisumu Ndogo no está en línea   Reply With Quote
Old September 21st, 2009, 08:43 PM   #12
Kisumu Ndogo
美国: Rep KE
 
Kisumu Ndogo's Avatar
 
Join Date: May 2007
Location: @penguins.nhl.com ☆☆☆☆☆
Posts: 3,604
Likes (Received): 47

More Upcoming & U|C Apartments in Nairobi





Apartments|Duplezes are in: Parklands, Kitisuri, Lovington Areas | Nairobi
__________________
isupporthekenyancountygovernments
Kisumu Ndogo no está en línea   Reply With Quote
Old September 22nd, 2009, 08:51 AM   #13
mikeotechi
Construction Analyst
 
mikeotechi's Avatar
 
Join Date: Aug 2009
Location: Nairobi
Posts: 106
Likes (Received): 0

Kenya National Bureau of Statistics Data a Gold Mine

By Carol Musyoka Business Daily
Posted Monday, September 14 2009 at 00:00
Last week I was stuck in hideous traffic about two shakes of a duck’s tail from my house. Every single inch of road was covered by the never ending ingenuity of Kenyan drivers to create paths where no car has ever trodden.
In keeping with the same herd mentality — of which I am very ashamed to admit I subscribe to every now and then — I had the ingenious idea of taking a rather circuitous route to my house via a securely manned gated community.
As soon as I approached the padlocked gate, the security guard asked me who I was going to see and I promptly gave him a name of one of the residents that I happen to know lives there.
Open sesame and a shorter path to my house was provided. As I smugly drove through the formerly public but now privatised road, my daughter chimed from the back seat “Mummy, are we going to visit uncle so-and-so?”
Without thinking I quickly responded “No, I am just using a short-cut.”
“Well, then you told a lie to that askari at the gate and it means that you are going to hell, because Jesus does not like liars!” was her caustic rejoinder.
Having been dispatched to eternal hell and damnation by my six-year-old judge, it got me thinking about how little pieces of information can determine an industry’s destiny.
Last week, I was pleasantly surprised to visit the Kenya National Bureau of Statistics website and find relatively up to date information on leading economic indicators such as prices of tea, coffee, visitor arrivals and departures at JKIA, oil, sources of electricity, production of soft drinks, assembled vehicles and much more monthly data, ranging from as early as March 2009 to as recent as July 2009.
It was extremely refreshing to find a government department that has gone the electronic way to disseminate critical economic data, and even more so to find such data to be relatively up to date where July 2009 numbers were available, but with room for improvement where only March 2009 data was available.
However one of the most surprising jewels of data that I unpacked was the latest figures from the Nairobi City Council for the value of building plans approved between June 2008 and June 2009.
Having discussed in several forums whether Nairobi’s property bubble was about to burst, I now felt ready to tackle that debate armed with credible numbers on what the foreseeable future held in store as far as supply was concerned.
The data from Nairobi City Council provided the value of approved building plans for both residential and non-residential structures, allowing the reader to determine a reasonable trend analysis.
It would be even more useful if the reader was given such data for the last 10 years – wishful thinking I admit – but armed with other economic data, information that would allow a researcher in the real estate industry to make a fairly reasonable short to medium term projection of the future.
Why would such information be useful? Using the United States as an example, the US Census Bureau publishes monthly data in its New Residential Construction Report, referred to by Wall Street as “Housing Starts”.
The report provides three metrics which are housing starts, that is, the beginning of the foundation of the home, building permits as of when they are granted and finally, housing completions. The data typically divided into single family and multiple-unit housing, covers the entire country and is used by a variety of industries.
In the manufacturing industry, for example, it enables manufacturers to predict future demand for home appliances, fabricated metal, nonmetallic mineral and wood products that are some of the largest contributors of inputs used in residential construction.
For the real estate industry, the data, coupled with information on housing sales, helps residential developers forecast supply and demand for either single family units or multi-family units such as apartments.
In 2005, which was close to the peak of the housing bubble in the United States, housing analysts believed that many developers converted their structures for rental apartments into apartments for sale, the latter of which are called condominiums in American parlance. This was largely due to a higher demand for purchase of apartments driven by the favourable mortgage environment that eventually led to the sub-prime mess.
Coming back to Kenya, further details from the Kenya National Bureau of Statistics would help drive predictable business assumptions for certain industries.
To begin with, the survey of approved building plans should extend to other urban centres such as Mombasa and Kisumu as well as the Greater Nairobi municipalities such as Ngong, Mavoko, Thika and Limuru that are also benefitting from the construction boom.
Armed with this information, suppliers of inputs for residential and non-residential construction such as cement manufacturers, wood suppliers among others are able to forecast whether to shrink or grow stocks.
For the tax collector, data on residential units for sale can be correlated to the number of owner-occupier tax benefits being claimed to derive the number of units that should be generating rental income and therefore taxable income.
For the financial industry, such data can be used to forecast demand for construction loans and residential as well as commercial mortgages. Where such data is juxtaposed to interest rates forecast, adequate provision can be made for demand for, or reduction, in mortgages.
If interest rates are forecasted to drop then a higher number of housing starts for example would generate a higher demand for mortgages and vice versa.
Such information also helps the loan approvers determine if a developer seeking a loan for a residential or commercial construction project is following or bucking the trend within the construction industry and make an informed decision thereof.
Further granularity in the data provided by the Statistics Bureau would be useful in the area of completions versus permits issued. Such information helps data users to see a history of completed projects which provides a level of accuracy in predicting what the final housing stock will be vis-à-vis the building permits granted. It also helps data users to identify the effects of the overall economy on the ability of building projects to be concluded.
As they would say in the Royal Ascot Derby, “we’re off to a good start” and I must give credit to the team at KNBS for collecting and publishing critical economic data that is practical to industry players in planning for the future.
The devil, they say, is in the detail and getting further detailed analysis in terms of geographical scope and types of residential and non-residential building plans will give data users far stronger capabilities to make informed business decisions.
Personally, I’m off to look for divine forgiveness to avoid the fire and brimstone that I’ve been threatened with following my traffic avoiding kerfuffle!
__________________
www.csaproperty.net.
(Ideal Locations.Effective Comparisons.Trusted Connections).
#1 Construction/Real Estate Database for the Africa Great Lakes Region.
mikeotechi no está en línea   Reply With Quote
Old September 22nd, 2009, 10:22 AM   #14
ernestombayo7
Veteran
 
ernestombayo7's Avatar
 
Join Date: Apr 2007
Location: London SE8
Posts: 3,247
Likes (Received): 281

mike,whats the url for Kenya National Bureau of Statistics website?
ernestombayo7 no está en línea   Reply With Quote
Old September 22nd, 2009, 02:43 PM   #15
mikeotechi
Construction Analyst
 
mikeotechi's Avatar
 
Join Date: Aug 2009
Location: Nairobi
Posts: 106
Likes (Received): 0

www.cbs.go.ke
__________________
www.csaproperty.net.
(Ideal Locations.Effective Comparisons.Trusted Connections).
#1 Construction/Real Estate Database for the Africa Great Lakes Region.
mikeotechi no está en línea   Reply With Quote
Old September 22nd, 2009, 03:21 PM   #16
ernestombayo7
Veteran
 
ernestombayo7's Avatar
 
Join Date: Apr 2007
Location: London SE8
Posts: 3,247
Likes (Received): 281

Quote:
Originally Posted by mikeotechi View Post
thanks.its a great site.hard to believe its a government site.
ernestombayo7 no está en línea   Reply With Quote
Old September 24th, 2009, 03:26 PM   #17
chui
Registered User
 
chui's Avatar
 
Join Date: Apr 2007
Posts: 309
Likes (Received): 13

Quote:
Originally Posted by mikeotechi View Post
By Carol Musyoka Business Daily
Posted Monday, September 14 2009 at 00:00
However one of the most surprising jewels of data that I unpacked was the latest figures from the Nairobi City Council for the value of building plans approved between June 2008 and June 2009.
Having discussed in several forums whether Nairobi’s property bubble was about to burst, I now felt ready to tackle that debate armed with credible numbers on what the foreseeable future held in store as far as supply was concerned.

Unfortunately, Carol Musyoka does not reveal whether the data shows if Nairobi's property bubble was about to burst.
chui no está en línea   Reply With Quote
Old September 25th, 2009, 07:39 AM   #18
mikeotechi
Construction Analyst
 
mikeotechi's Avatar
 
Join Date: Aug 2009
Location: Nairobi
Posts: 106
Likes (Received): 0

We Don't Need No Buried Treasure,We Don't Need It....!

Quote:
Originally Posted by chui View Post

Unfortunately, Carol Musyoka does not reveal whether the data shows if Nairobi's property bubble was about to burst.
Chui,I do think Property Bust or not may well be the subject of another write-up from the good lady. What Carol is illustrating and shedding light-on are the possibilities that can be drawn from the Central Bureau of Statistics Database. I think we are too used to speculative and conspiracy theories in what we read from our writers to appreciate some positives. When "The Citizen" headlines,"Raila's Dark Day in the US", that provides a better read than a full splash of him,Ida and the American first family at the front page of the mainstream dailies.
Now this Property Bubble bursting, to a layman like me is very wordy honestly. However,my simple take is that prices of Property are driven by the market forces of demand and supply.Carol Musyoka suggests that their is tonnes of data at the Bureau,but we need to agree that no steps have been taken to Analyse this data as indicators of what is happening in the Kenyan property sector.Housing Market indicators used in different global markets are not necessarily the same.
A quick check at Wikipedia will enlighten that,"economists have developed a number of financial ratios and economic indicators that can be used to evaluate whether homes in a given area are fairly valued. By comparing current levels to previous levels that have proven unsustainable in the past (i.e. led to or at least accompanied crashes), one can make an educated guess as to whether a given real estate market is experiencing a bubble.".We have no evidence that there has even been an attempt to carry out such an exercise, let alone in Nairobi but the whole country. Some Analysts have actually attributed the high demand of Property in Kenya to the global recession in the US with investors preferring to remit their money back home. Others speak of the piracy earnings, off the coast of Somali. We only know that remittances of US$50 million per month from Kenyans in the diaspora is recorded by the Central Bank.
This data is hardly enough to derive some conclusions about Property Bubble bursts.However, building on what is available at the Central Bureau of Statistics,its possible to make some informed conclusions.
__________________
www.csaproperty.net.
(Ideal Locations.Effective Comparisons.Trusted Connections).
#1 Construction/Real Estate Database for the Africa Great Lakes Region.

Last edited by mikeotechi; September 25th, 2009 at 07:45 AM. Reason: ..
mikeotechi no está en línea   Reply With Quote
Old September 25th, 2009, 08:29 AM   #19
ernestombayo7
Veteran
 
ernestombayo7's Avatar
 
Join Date: Apr 2007
Location: London SE8
Posts: 3,247
Likes (Received): 281

Quote:
Originally Posted by mikeotechi View Post

Chui,I do think Property Bust or not may well be the subject of another write-up from the good lady. What Carol is illustrating and shedding light-on are the possibilities that can be drawn from the Central Bureau of Statistics Database. I think we are too used to speculative and conspiracy theories in what we read from our writers to appreciate some positives. When "The Citizen" headlines,"Raila's Dark Day in the US", that provides a better read than a full splash of him,Ida and the American first family at the front page of the mainstream dailies.
Now this Property Bubble bursting, to a layman like me is very wordy honestly. However,my simple take is that prices of Property are driven by the market forces of demand and supply.Carol Musyoka suggests that their is tonnes of data at the Bureau,but we need to agree that no steps have been taken to Analyse this data as indicators of what is happening in the Kenyan property sector.Housing Market indicators used in different global markets are not necessarily the same.
A quick check at Wikipedia will enlighten that,"economists have developed a number of financial ratios and economic indicators that can be used to evaluate whether homes in a given area are fairly valued. By comparing current levels to previous levels that have proven unsustainable in the past (i.e. led to or at least accompanied crashes), one can make an educated guess as to whether a given real estate market is experiencing a bubble.".We have no evidence that there has even been an attempt to carry out such an exercise, let alone in Nairobi but the whole country. Some Analysts have actually attributed the high demand of Property in Kenya to the global recession in the US with investors preferring to remit their money back home. Others speak of the piracy earnings, off the coast of Somali. We only know that remittances of US$50 million per month from Kenyans in the diaspora is recorded by the Central Bank.
This data is hardly enough to derive some conclusions about Property Bubble bursts.However, building on what is available at the Central Bureau of Statistics,its possible to make some informed conclusions.
all indications are that the bubble is still growing.the number of housing projects in Nairobi and Mombasa are all testimonies of the huge demand.the biggest problem seems to be shortage of affordable housing.i.e houses for low income earners.it would be very good if we were to see more houses in the range of 2-4 million kshs built.
ernestombayo7 no está en línea   Reply With Quote
Old September 25th, 2009, 12:16 PM   #20
mikeotechi
Construction Analyst
 
mikeotechi's Avatar
 
Join Date: Aug 2009
Location: Nairobi
Posts: 106
Likes (Received): 0

http://www.nation.co.ke/oped/Letters...u/-/index.html
__________________
www.csaproperty.net.
(Ideal Locations.Effective Comparisons.Trusted Connections).
#1 Construction/Real Estate Database for the Africa Great Lakes Region.
mikeotechi no está en línea   Reply With Quote


Reply

Tags
development, real estate kenya

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT +2. The time now is 05:55 AM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Feedback Buttons provided by Advanced Post Thanks / Like v3.2.5 (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

Hosted by Blacksun, dedicated to this site too!
Forum server management by DaiTengu