Hass Consult projects steady property market on stable demand
Steve Umidha @UmidhaSteve
Demand for housing will see an uptick once the economy picks up early 2020 as prospective home buyers feel more secure about their jobs, property consultant Hass Consult has said.
In its property index for the Third Quarter, the firm said overall market prices remained static with just 0.3 per cent increase over the quarter and 2.27 per cent on an annual basis – even though rent prices have grown by 4.08 per cent since 2001.
Land prices on the other hand registered an overall marginal growth, with areas like Upper Hill having the most expensive land with an acre in the suburb going for Sh512 million while in the satellite towns and fast-growing towns like Ruaka, the most expensive land retailed at Sh89 million per acre.
Prices in the satellite towns also recorded a 0.06 per cent dip during the period under review citing the Covid-19 pandemic.
“A few suburbs have backed the trend of falling rents which still continue as tenants are negotiating for discounts amid the tough economic environment.
We have not seen a major drop in land values despite the challenges such Covid-19 and the tough economic environment proving that investors still see this as the best bet over the long-term,” said Sakina Hassanali, Head of Development Consulting and Research.
Kenya Bankers Association House Index (KBA-HPI), early this week showed that the rate of house prices growth in the third quarter of 2020 had remained flattened registering a 0.08 per cent contraction compared to the 0.20 per cent reported in the second quarter of the year – with the pandemic having a bearing on both the demand and supply.
“As we have argued before, during periods of a sharp contraction in economic activity house prices either remain flat or decline slightly,’’ said the Kenya Bankers Association Chief Executive Habil Olaka while commenting on the KBA-HPI report released on Monday.
Another indicator showing a promising future is the recent gazettement of the Retirement Benefits (Mortgage Loans) (Amendment) Regulation, 2020 which will pool more resources to sector.
whose implementation could see more home-ownership opportunities for most Kenyans and create a pool of ready cash for developers to help fix the country’s housing gap.