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Nairobi Metro Region Projects and construction in the Nairobi Metropolitan Region


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Old October 11th, 2017, 03:14 PM   #81
ewangai
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Originally Posted by Kenyan_yungin View Post
Bruh! which empty flats?

Pinnacle hasn't been built yet. Ama there's another Pinnacle I'm not aware of?
apologies, meant to say 'le mac'
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Old October 11th, 2017, 03:18 PM   #82
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Lemac are overpriced
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Old October 11th, 2017, 08:28 PM   #83
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Lemac are overpriced
I agree. for what you get, most of these flats are overpriced
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Old October 12th, 2017, 05:15 PM   #84
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All these housing projects coming up/already up are madly overpriced. Developers are making a killing selling units to investors at exorbitant prices who were given unrealistic figures. Developers give figures of expected returns to buyers at the assumption that the unit will have 80% occupancy rate or higher. But the reality is these units stay empty most of the time because rental rates are too high. Most of these properties are bought on credit by buyers who end up not collecting enough rent to service the loans because of long periods of no tenancy. By this time, the developer is unveiling another project and getting more investors burnt.
There is plenty of cash to be made in low income and student housing sector.
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Old October 12th, 2017, 05:46 PM   #85
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All these housing projects coming up/already up are madly overpriced. Developers are making a killing selling units to investors at exorbitant prices who were given unrealistic figures. Developers give figures of expected returns to buyers at the assumption that the unit will have 80% occupancy rate or higher. But the reality is these units stay empty most of the time because rental rates are too high. Most of these properties are bought on credit by buyers who end up not collecting enough rent to service the loans because of long periods of no tenancy. By this time, the developer is unveiling another project and getting more investors burnt.
There is plenty of cash to be made in low income and student housing sector.
The market will correct this.As is, the demand far outstrips the supply. I remember apts in kile would take almost 2years to be sold out back in the days. At the exorbitant price investors would recoup cap at. 30% sales and a two year wait collecting profits was not bad. Mind you, this was in the early 2000s when number of apts in kile were countable, unoccupied and looked like a bad investment('oversupply'). It's the same phenomenon with the likes of avic, cytonn,montave and pinnacle. Montave apts go for as low as 8M and is almost fully sold out. I can bet Avic will even beat this. Mixed used is the trick here and is what will sustain this momentum while exclusive office towers like britam and uap take longer to fill up. Also remember mortgage financing is almost non existent in kenya.Just a matter of time and big chinese players like avic will build and provide financing at low rates. We are far from reaching the plateau. Only politics and violence can slow this down

Last edited by royco mchuzi; October 12th, 2017 at 05:52 PM.
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Old October 12th, 2017, 06:04 PM   #86
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All these housing projects coming up/already up are madly overpriced. Developers are making a killing selling units to investors at exorbitant prices who were given unrealistic figures. Developers give figures of expected returns to buyers at the assumption that the unit will have 80% occupancy rate or higher. But the reality is these units stay empty most of the time because rental rates are too high. Most of these properties are bought on credit by buyers who end up not collecting enough rent to service the loans because of long periods of no tenancy. By this time, the developer is unveiling another project and getting more investors burnt.
There is plenty of cash to be made in low income and student housing sector.
The market will correct this.As is the demand far outstrips the supply. I remember apts in kile would take almost 2years to be sold out back in the days. At the exorbitant price investors would recoup cap at. 30% sales. So two year wait collecting profits was not bad. Mind you, this was in the early 2000s when number of apts in kile were countable, unoccupied and looked like a bad investment('oversupply'). Its the same phenomenon with the likes of avic, cytonn,montave and pinnacle. Montave apts go for as low as 8M and almost fully sold out. I can bet Avic will even beat this. Mixed used is the trick here and is what will keep this momentum.Exclusive office towers like britam and uap might take longer to fill up. Also remember mortgage financing is almost non existent in kenya.Just a matter of time, and big chinese players like avic will build and provide financing at low rates. We are far from reaching the plateau. Only politics and violence can slow this down
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Old October 12th, 2017, 07:41 PM   #87
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Is it really true that demand exceeds supply? I doubt this is true really, it doesn’t seem to be so for office buildings at least. May be in the residentials? But honestly those prices are so high I’m not sure how locals can manage to buy them. May be businesspeople, but again how many of those do we really have to sustain that market! I think the sector needs some targeted analysis of need, demand and supply.
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Old October 13th, 2017, 08:49 AM   #88
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Yes,its true the demand outstrips the supply by far depending on the segment of the market you target.I am also of the school of thought that supply should outstrip demand (in all segments) so that the pricing comes down.Real estate in Kenya is way expensive.
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Old October 13th, 2017, 05:18 PM   #89
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Originally Posted by royco mchuzi View Post
The market will correct this.As is the demand far outstrips the supply. I remember apts in kile would take almost 2years to be sold out back in the days. At the exorbitant price investors would recoup cap at. 30% sales. So two year wait collecting profits was not bad. Mind you, this was in the early 2000s when number of apts in kile were countable, unoccupied and looked like a bad investment('oversupply'). Its the same phenomenon with the likes of avic, cytonn,montave and pinnacle. Montave apts go for as low as 8M and almost fully sold out. I can bet Avic will even beat this. Mixed used is the trick here and is what will keep this momentum.Exclusive office towers like britam and uap might take longer to fill up. Also remember mortgage financing is almost non existent in kenya.Just a matter of time, and big chinese players like avic will build and provide financing at low rates. We are far from reaching the plateau. Only politics and violence can slow this down
The demand outstrips the supply narrative is really not what these companies are doing. They are churning out units targeting upper middle and expat community. It's no secret that the targeted market has already been satisfied because Kenya doesn't have millions of upper middle class population nor millions of expats. That's why you find highend housing projects laying empty. When they talk of serious shortage of housing in the country they mean lower middle and low income segments. That's where you will find housing shortage of over 250,000 units par year and increasing.

We can not go by your Kile analogy in this argument. Remember some things; there were tiny numbers of such arpartments back then. That's about the same time Kenya was starting to experience real growth as a result of Kibaki coming to power. That growth was enough to warrant increase of middle class that was able to occupy those units. This demand that rose and the shortage that followed after as a result made the property owners increase property prices by 25% and eventually to 40% and boom that's when we started seeing all the articles and analysts talking about Kenyan real estate having the highest returns even topping the world eventually on couple of occasions.

This signaled the entrance of global real estate firms trying to get a piece of the pie. Well they came and they built. All of them targeting the same market And now we have madly overpriced and oversupplied units for the intended market, which never had the same demand as the lower income segment.

Plus the fact you see every developer marking sold out or 70% or 50% sold out doesn't really mean any of the units is fully paid for. Most of the time they are just down payments by potential buyers. Most of the time all they could have are down payments for 100% of the units and guess what they will advertise? Fully sold out. And sometimes these fully sold out, almost sold out, 50% sold out etc are gimmicks to get potential investors interested. It creates more urgency and legitimacy when an investor sees that at least some or most of the units are already booked.

The number of units in the market today far outstrips that that was in the market back in the days while the demand never increased to the point of warranting the construction spree of housing we see today. The only way the market will correct itself is if we started experiencing healthier economic growth than what we currently have. Going by the current trend, the middle class will never be able to meet the supply unless we stop at what we currently have till we fill them up. It won't be long before prices fall by over 25% as a result.

Developers are the real winners here. They churn out units in record time and numbers, sell them all making insane profits and are into the next. The investor will be left to wait for over 15 years just to break even, not forgetting loans they will be servicing out of pocket. Any real estate investment that takes over 8 years to break even is not sustainable.

Last edited by primezz; October 13th, 2017 at 05:25 PM.
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Old October 16th, 2017, 12:12 PM   #90
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I just saw a post on their FB and looks like some of their projects are backed by Finland's Taaleri Plc.

These guys manage assets over $4 billion, which makes me even more optimistic about the projects Cytonn is undertaking.
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Old November 15th, 2017, 12:00 AM   #91
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whoa!! spectacular
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Old December 15th, 2017, 12:25 PM   #92
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Any progress around here....now that amara ridge is complete
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Old February 10th, 2018, 05:14 PM   #93
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I think these people have a project in Tatu city. There's a big bill board at the junction of Ruiru Kiambu road and the eastern by pass.Will post the name of the project after confirming. ..
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Old February 10th, 2018, 06:51 PM   #94
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River run maybe..http://riverrun-estates.com/
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Old February 10th, 2018, 09:06 PM   #95
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I think these people have a project in Tatu city. There's a big bill board at the junction of Ruiru Kiambu road and the eastern by pass.Will post the name of the project after confirming. ..
Its not related to this thread, so stop bumping an old thread without anything new
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Old February 11th, 2018, 03:58 PM   #96
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Its not related to this thread, so stop bumping an old thread without anything new
Hehe..😂😂😂
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Old February 22nd, 2018, 09:55 PM   #97
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Hell just saw the bill board coming up
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Old February 22nd, 2018, 11:00 PM   #98
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on site ama?
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Old February 23rd, 2018, 06:54 AM   #99
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Great News,kilimani "moms and Dads" mtushow hii story hehe.
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Old February 23rd, 2018, 09:17 AM   #100
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Cytton hawachezi na kazi
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