KWEMA JULY-AUGUST 2013
10 MILLION & BELOW >>NAIROBI’S TOP HOUSING DEVELOPMENTS BELOW 10MILLION<<
JIMMY NG’ANG’A HIS REAL ESTATE DEVELOPMENT HOBBY & ADVICE FOR ASPIRING DEVELOPERS
NAIROBI RANKED AS #5 CITY IN AFRICA
CAPITAL GAINS TAX FOR KENYA?
SANLAM PLANS 5BN INVESTMENT IN KENYA
PROPERTY NEWS FROM AFRICA & AROUND THE WORLD
4-31
10
36
Ambani buys Prime Property worth KES2.9BN
Lukenya Valley
Feature: Top Properties 10million & Below
Interview: Jimmy Ng’ang’a Shares His Building Experiences
54
Nairobi Ranked as Fifth Among Cities Predicted to be top contenders for investors
35
38 44
Green Park Estate
FEATURED PROPERTIES 10MILLION & BELOW 04
Feature Property Sunset Boulevard
26 Feature Property Sidai Village
Mountain View Mansion
ARTICLES AND PROPERTY UPDATES 21
Sanlam plans KES 5BN investment in Kenya
28
Capital Gains Tax, a blessing or a curse?
06 Feature Property Mowlem Heights
30
08 Delta Plains
31 Feature Properties Zahara Gardens, Fortcom and Gilead Homes
16 Sheshe Gardens 18
22 Feature Property Lukenya Hills
40
21 Century tops in Global Brand Survey
42 47
Commercial Real Estate Boom in Namibia 24 Is Dubai at it again?
49
Ghana’s Real Estate Sector Looks Promising in 2013
50 Energy Certificates compulsory in Spain 51 Sluggish Economy weighs on Zim’s Real Estate Market 53 US Real Estate prices to continue rising
Contributors:
Everest Park
Front page photograph and photos on page 56 courtesy of Mutua Matheka (@truthslinger // mutuamatheka.co.ke)
Feature Property Athi View
43
Feature Property Runda View
Feature Property Kisaju View
OTHER IMPORTANT DEVELOPMENTS 32
Konza Technology Park
34
Green Garden Apartments
37
Prime Land and Properties
40-41
Junction Apartments, Mugumo Court and Storm Park
Editing: Corrine Kihara (@youngmisskihara) and Mwangi Kimani. Writing: Baraka Njagi (@njaginjagz) and Corrine Kihara (@youngmisskihara). Special thanks to Laka Nyaga (@laxophonist)and Prisca Ojwang (@priscaojwang) for leasing photography equipment.
Who Are We? Kwema is a Swahili word that translates to “It is well.” We act as a market place that connects developers/property owners and potential buyers. Kwema Realtors is a real estate company based in Nairobi, Kenya that markets property and also advices its clients on how to make proper purchasing decisions.
kwemarealtors@gmail.com 0727 207313 0738 976215
Note from the CEO Howdy! In this issue we will focus on low cost housing, we have profiled developments that are below KES 10million. We believe that everybody has a right to quality and affordable housing. Housing in Kenya is very expensive, mortgage rates a high and quality housing comes at a cost that is not readily met by most. We want to applaud those that are targeting low and middle income earners and offering premium products for this fast rising market. Please feel free to get in touch with us for any housing, property related needs or queries. And all the best in your endevours! Baraka Njagi CEO KWEMA REALTORS
Making Dreams Reality”
SUNSET BOULEVARD
One, two, and three bedroom apartments in four, five and six storey buildings on 25 acres of land. Features:
Lush gardens, shopping mall. The middle part of Sunset Boulevard is a car free-zone where one can roam freely between home and the greens. 24hour high security.
Made in Kenya but designed internationally... Other developments by the developer include residential projects such as Kileleshwa Palm Springs, Lavington Princess Park, Karen Bel Air country homes and the Greenhouse office park.
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Location:
Off Mombasa road and adjacent to the River Athi. Easy access: 22minutes away from Nairobiâ&#x20AC;&#x2122;s Nyayo stadium, 10 minutes away from the Jomo Kenyatta International Airport. With the new railway line in place it takes 40minutes to reach the CBD by rail.
Making Dreams Realityâ&#x20AC;?
FEATURE PROPERTY
All apartments include: Master ensuite Secured mahogany doors Utility and dobby areas Fully fitted kitchens Wardrobes in all bedrooms Guest cloakrooms cermic tiles French windows Great view of the lounge Hot water showers Good circulation
One bedroom apartments 560 sq feet
2.8M
Two bedroom apartments 760 sq feet
4.2M
Three bedroom apartments 1,000 sq feet
“Superior design adopting
4.8M
innovative working parctices to generate a sophisticated look for your home
”
Making Dreams Reality”
5
FEATURE PROPERTY
Mowlem Heights Location: Komarock, off Kangundo road. Accessible through thika road or Mombasa road (eastern bypass).
Two bedroom apartments
4.7M Features: Lounge with dining room and living area. Kitchen has a spacious pantry. Laundry area and stoop.
Extras:
70 sqmeters 2 bedrooms and 2 baths.
Security: 24hour security, electric walled fence and controlled access. 500meters away from a police post. Ample Parking, 2 backup generators, club house, day care center and a shopping center.
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Making Dreams Realityâ&#x20AC;?
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FEATURE PROPERTY
DELTA PLAINS Dealta Plains is easily accessible, off Mombasa road 1.5km from Mlolongo.
All houses are fitted with: - Master en-suite
â&#x20AC;&#x153;A community of 153 units on 10 acresâ&#x20AC;?
- Lounge and dining opening into the garden - Spacious kitchen with pantry - Service yard - Domestic servant quarters - Guest cloakroom
Tulip 8.2Million 3bedroom townhouse measuring 116m2 Plot size - 7.8m by 19.8m
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FEATURE PROPERTY
Lilly 8.2Million
3bed townhouse measuring125m2 Plot size - 7.7m by 18.9m
Daisy 8.6Million
Jasmine 9Million 3bedroom townhouse measuring 137m2 Plot size - 7.8m by 19.8m ) Daisy-terraced homes(7.7m by 18.9m) Jasmin-semi detached homes(7.7m by 18.9m)
Rose 11.5million*
3bedroom townhouse measuring 156m2 Plot size - 9.9m by 19.8m
Extra Features:
Water treatment plant & borehole Generator for common areas Mini shopping center Secured gated community Gym
*Not one of the properties 10million and below, but still an integral part of Delta Plains
Making Dreams Realityâ&#x20AC;?
9
On Real Estate Development, Honesty, a Good Name & Excellence.
Jimmy Ng’ang’a
Meet husband to one wife, father of two and part time developer. We speak to him on his part-time hobby; developing residential units.
10
Making Dreams Reality”
INTERVIEW
Making Dreams Reality”
11
INTERVIEW JIMMY NG’ANG’A
J
immy owes his building experience to his teenage years. His father passed on early leaving his mother to complete the couple’s dream home. Because she did not want to directly deal with the workers, she left him with the responsibility of supervising and paying them. It was this experience that begun his interest in construction.
How did you get to develop your first personal project? Decades after I helped my mum with building our family home, I established a family of my own. We started by renting a house, but soon decided to build on a plot of land I owned in Kasarani. This was going to be my first personal project; a two in one three bedroom house. I would rent the house below and live upstairs. You can imagine my excitement! Not only would I be able to live in a house I built with my own hands, but I would also get some additional income from the extra unit. However as more people moved into the area and built apartments it became very clear that I would have no privacy; the apartments towered over my three storey house. So I decided to rent out the house in Kasarani and become a tenant in Ndenderu. Building in Kasarani was a “classroom experience”. The foreman was an old man, and because he was almost my father’s age, I thought I could trust him. 12
How was this experience? Sadly I was wrong; throughout the duration of the project he stole from me. For example, he told me that the workers work half-day on Saturdays, but get paid a full day’s wage. He continued with his guise for some time, until I decided that it was better for them not to come on Saturdays at all. Sensing that he would lose some money, he changed tune and said we could work something out. It was only later that I figured out that he had been conning me! At completion of the project I found out that I had spent more time than the estimated period and double the original amount. Thankfully I was building on my savings and not a loan!
INTERVIEW JIMMY NG’ANG’A
What was your next development? After this, I bought a ¼ acre plot in Ruaraka and began work on developing 14 apartments. This time I started with KES 40,000 reason being I didn’t want to be put off by the costs. I got off to a humble start, digging the mitaros (ditches) that would be used as the foundation. I figured out that the only way to get started was to do something that would motivate me. Every time I went to the site and saw the mitaros (ditches) it encouraged me to go further! Several people start building and then stall because of a lack of funds. Because I did not want to go through such a situation, I worked on the structure and after I was finished, broke the rest of the development into phases - everything from the plastering to finishes was done apartment by apartment. Because I wanted to finish without debt, I also built on savings and cooperative loans which are much cheaper than commercial loans. Today the 14 apartments (Gilead Homes) are finished and bring me a monthly rental income. (Two units are for sale on page 31).
A visit to Gilead Homes and you notice that it is a very different set of apartments from the neighboring apartments. Clothes are not hanging at the front, cars are neatly parked in a tidy, graveled parking lot, and there is plenty of open space. A stark contrast with developments in the surrounding area where developers maximize on every inch of space, leaving very little room for children to play or cars to park. He adds: “Aesthetics are very important to me. I wanted to be different, so I made sure that there was space for the residents to utilize. I also do not like how buildings look with clothes hanging from the front. So I made sure that each of the apartments had pipes that collect the water that drips from the clothes lines. It is the very simple things that mean the difference between neighborly feuds and peace; small things like red clothes dripping colored water from the veranda above to the veranda below.”
13
Take-outs from Kasarani • One should not cry over spilt milk. The lessons I learnt were school fees in the school of life. You pay for experience and it is expensive.
• You could have a general idea of what building is like, or have probably talked to your friends and have read stories, but until you have begun and finished building something you realize that you “knew nothing.”
Take-outs from Ruaka • You don’t have to be a big time developer. I had a job but I still found time to construct.
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• Hustle of building: “high” costs, ease which you can be taken advantage of, working with fundis (construction workers) can be a nightmare. Building is not for everybody, you need to have the patience (buying what’s already been built is hustle free). Building is a risk that one has to be willing to make, however in the end it is a Making Dreams Reality” risk with a high pay off.
INTERVIEW JIMMY NG’ANG’A
Do you have any Advice for aspiring developers?
1.
Start by building something that is not too involving. For example, if you have a plot that you want to develop a house on; start with the servant’s quarter or guard house. Remember that the principles are the same for any structure that you would want to develop. In addition to this, every time you see the structure it tells you that you have begun!
4.
Live or work next to where you are constructing as it helps when supervising the workers. The workmen will act and work differently depending on how close you are.
5.
Take a drive and see what other people are doing. For example you may see a pattern or design of a window grill, window, door that you like. Every time you go and take a drive it should inspire you to create something greater and better.
2.
Start with what you can afford. Finances always come once you have begun with your idea. Get started and start small. Money follows motivation and innovation. Start with the fence, gate or even gardening.
3.
Plant trees or flowers.
Have a plan and idea of where the driveway or garden will be and begin working on that. Apart from being much simpler than the construction, it also helps with your motivation and when the project is finished it will look like you have stayed there forever.
6.
Develop a mental picture of what you want your development to look like. Development requires that you develop the idea in your mind not just physically; as a man thinks so is he.
Making Dreams Reality”
15
SHESHE GARDENS
2 Bedroom Apartment
6.5 Million
Location:
1km from Mlolongo. Easily accessible from Nairobi’s CBD either by public transport (including train) or private means.
Features
Spacious lounge and Balcony Fitted Kitchen with yard and pantry
“Luxurious stylishly designed apartments.” 16
Making Dreams Reality”
FEATURE PROPERTY
3 Bedroom Apartment
8.5 Million Features
Master ensuite Spacious lounge and Balcony Dinning room Fitted Kitchen with yard and pantry
Making Dreams Realityâ&#x20AC;?
17
FEATURE PROPERTY
Location:
45 minutes from the city centre, along the newly redeveloped Mombasa road. Touches Mombasa road a few
meters from the Kitengela/Namanga road Intersection.
EVEREST PARK Main Features:
Ample Parking Modern Fitted Kitchen Spacious Bedroom and Lounge area Laundry/Drying area with facilities for washing machine A commercial centre with a supermarket, restaurants, shop, clinics, offices. Kindergarten at a more private area within the development.
One Bedroom Apartments
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Making Dreams Realityâ&#x20AC;?
2.4Million
Two Bedroom Apartments
FEATURE PROPERTY
4Million
Three Bedroom Apartments Both 2 and 3 Bedroom Apartments are fitted with: Large Living Room opening to Balcony Modern High Class Finishes and Fittings Large Bedrooms enough to take two 4ft beds Large Master
Ensuite Bedroom opening to Balcony Separate dining area Modern Fitted Kitchen
Laundry/Drying area with washing
machine facilities Spacious Study Area
5.5Million “Spacious, stylish and built to the highest standards. The units are especially built with the investor in mind as well as young executives.”
Making Dreams Reality”
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PROPERTY UPDATE AFRICA
Plans Sh5bn Kenya Real Estate investments
South African firm Sanlam is planning to invest $65 million (Sh5.5 billion) in Kenya’s real estate sector through its property fund launched last month.
Kenya is among about seven Sub-Saharan African countries that the firm has planned to invest $1 billion (Sh85 billion) over the next
All investments are targeting double-digit returns. “The Fund will be dollar denominated and will target an annualised return of between 14 per cent and 18 per cent. This return will include both a cash distribution and capital value improvement,” said the report.
few years, according to a report published by global real estate consultants, Jones Lang LaSalle. The investments are to be done through the Sanlam Africa Core Real Estate Fund, which was launched on the Mauritius Stock Exchange last month and managed to raise $100 million (Sh8.5 billion) in the first round. Thomas Reilly the fund’s Chief Executive is already looking at a pipeline of potential deals worth more than $1bn (Sh85 billion) in Kenya, Nigeria, Zambia and Mozambique. He hopes to grow the fund to $500m (Sh43 billion) within the next three years,” said Jones Lang LaSalle in a brief on the African market. Sanlam has already identified deals in the Kenyan market that are estimated at $65 million (Sh5.5 billion), the report seen by the Business Daily says. Other potential investment destinations for the fund include Tanzania where the fund targets $85 million (Sh7.2 billion), Mozambique $162 million (Sh13.8 billion), Zambia $263 million (Sh22.4 billion), Nigeria $167 million (Sh14.2 billion), Ghana $259 million (Sh22 billion) and Uganda $190 million (Sh16.2 billion).
Sanlam joins other international investors that are eager to buy into Kenya’s property market. The International Finance Corporation (IFC) and India’s Reliance Industries have made billions of shillings worth of investments either directly or indirectly. The IFC recently announced a planned Sh4.1 billion investment in Garden City Mall, a shopping complex conceptualized by private equity firm Actis on Thika Road while Reliance Industries, through a subsidiary Delta Corp East Africa Limited, has bought 10 high value properties in prime locations. Update Via: Business Daily Newspaper
Making Dreams Reality”
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FEATURE PROPERTY
Location:
20km from Nairobi 1.5 km from the Nairobi - Mombasa Highway, and 12km from the new Syokimau Railway Station
Lukenya Hills
80% already sold
Lukenya Hills Phase 1 Plinth area of 96m2/1033sq feet Master bedroom ensuite
6Million
Two bedrooms Lounge and dinning room
FItted kitchen Built-in wardrobes Walk around garden
Connected to sewer line Boreholed water Overhead steel
tank Cabro paved internal roads Onsite convinience store Childrenâ&#x20AC;&#x2122;s playground Razor fence on perimeter wall KPLC power 22
FEATURE PROPERTY
Lukenya Hills Phase 2 plinth area of 96m2/ 1033sq feet plot size 12 x 20 meters
6.5Million All the features in phase 1 and added:
Solar panels
Shower cubical in master
bedroom car pack shade
“A high class home at a reasonable price with quality finishes”
Making Dreams Reality”
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FEATURE PROPERTY
ATHi ViEW Located in Syokimau. 7km from industrial area and 14.7km
from the CBD.
Shops, communal garden area with a basketball court, extra parking slots for guests, borehole, 630KVA transformer, waste water management and sewage treatment plant. 4 bedroom semi detached
maisonettes each 1700 square feet. 2 cabro
parking slots plus a self contained DSQ and spacious backyard space Each plot is individually gated with a solid 1.8meter stone wall to divide each plot. DSQ placed at the front of each house, leaving a
large landscaped garden at the back 24
FEATURE PROPERTY
Four bedroom Maisonettes (90 units available)
9.95Million Ensuite master bedroom, Ensuite guestroom, 2bedrooms, Cloakroom, Fitted wardrobes, Pantry, Spacious living room, Comfortable dining room, Self contained DSQ, Allocated washing area, Landscaped back garden, 2 cabro parking slots, 1.8meter wall diving each plot, Borehole water, KPLC power, Childrenâ&#x20AC;&#x2122;s play ground, Electric fence on perimeter walll, 2.5km
Syokimau Railyway Stattion
from 9 units of: 2 bedroom apartments 904 - 1100 square feet
5.8Million 6 units of: 3 bedroom apartments 1215square feet
7Million
>>
Each apartment has a:
Phase 2
Comfortable dining/lounge
3 & 4 bedroom maisonettes with balconyand 2 & 3 bedroom apartments.
<<
area, Fitted kitchen and wardrobes, Adequate
bathroom facilities, Allocated washing and drying area, & 1 cabro parking slot
Making Dreams Realityâ&#x20AC;?
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SiDAI ViLLAGE
7 Milion Three Bedtoom townhouses
Location:
100 acres of land in Athi River on the main Nairobi Mombasa Highway. 45Minutes from the city center, after the Kenya Meat Commission.
Features:
Master Bedroom Ensuite Solar water heating Private parking and Gardens Borehole and Main water supply Semi-open Kitchen with pantry DSQ is to the front of the property
Laundry yard Separate Guest cloak rooms 26
Making Dreams Realityâ&#x20AC;?
FEATURE PROPERTY
Extra Features:
Perimeter wall with electric Fence Individual title
Deeds, Planned schools, swimming pool, shopping complex, Multipurpose Hall, Football pitch and Basketball court, Petrol station and Matatu park
“High-quality finishes and a design geared towards a more engaging and fulfilling lifestyle”
“Designer
houses for lower income groups that offer an international flavor of design”
Making Dreams Reality”
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PROPERTY UPDATE AFRICA
Capital Gains Tax… Blessing in Disguise? By Corrine Kihara
The concept of capital gains tax varies from state to state, and even the policies that govern capital gains taxation differ from country to country. In the United Kingdom for instance, there are several laws that address this tax, and cater to the different types of persons within the society. In other states such as Israel, there is a flat
rate of 25% that applies across the board and this rate is changed on the basis of inflation. As it stands, Kenya currently has not enforced capital gains taxation but was supposed to do so this year and although
the National Treasury Secretary, Mr. Henry Rotich, has stated that this will not happen any time soon - mainly due to the logistics involved, it has caused a flurry of mixed emotions.
Another party that is in support of the idea is the Kenyan accounting firm, PKF, which had some of their senior financial officials call on the government to reinstate capital gains tax, which
1985
was suspended in , as it could greatly contribute to curing the existing budget deficits. When the PS in the ministry of finance, Joseph Kinyua was talking about why the government intended to charge the levy he stated, “It will
target the real estate sector, which has recorded tremendous growth over the years.” However, despite the benefits that could be
Capital Gains are generally the profits made from a sale of property. Profits here entail the difference between the price at which the property was bought and the price at which the property was sold.
drawn from this tariff, especially in the long term,
investors have completely backed away from the idea, this having been seen in the damage done by the news to the stocks and real estate markets respectively.
And so, the term capital gains tax would generally refer to a situation whereby, these profits are taxed. It has been said that this could greatly benefit the real estate sector, with the government saying that this project aims to
encourage the wealthy to contribute to our economy’s growth and development. Well, one must ask, how useful is this?
The Actis Managing Director for East Africa, Michael Turner, stated that the new levy would raise the Treasury’s tax revenue, which would help ease
competition for commercial bank loans between the private sector and the government. “Real estate is dependent on interest rates being relatively low, and so if without capital gains taxation the government turns to borrowing more from banks it will hurt the sector.”
The shilling itself took a hit, raising questions that some damage may have been done to the economy. The general feeling is that this will greatly sap the profits, which would be withheld from source. The government has guaranteed that it will not touch the issue for the next 6 months, putting investors at ease. However, the Kenya Revenue Authority stated that the reason it has suspended capital gains taxation is
current regulations in place are not adequate. because the
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FEATURE PROPERTY
7.95M 2 bedroom 6.8M 3 bedroom
Runda View Location: Ruaka, a few minutes away from the Village Market
2 bedroom with master en-suite 3 bedroom with master en-suite Each apartment has a Wash/splash area, Spacious living room and bedrooms, Balcony, Two underground parkings per Apartments
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Making Dreams Realityâ&#x20AC;?
FEATURE PROPERTY
Zahara Gardens
7.5M
Features: 2 bedroom (All bedrooms have in-built wardrobes) Modern finishes for kitchen, bathroom & bedrooms Kitchen/laundry yard Perimeter wall with electric fence Ample parking Childrenâ&#x20AC;&#x2122;s play area Great Location: across the road from Ngong race course
Fortcom
3 bedroom
9M
3 bedroom + DSQ
12M
PHASE THREE 3 Bedroom, Master with Ensuite And Guesthouse. Kitchen pantry, Laundry Area, Balcony Play Ground for the Children DSTV and Internet connections
Gilead Homes Location: Ruaka, next to the main road, and Ruaka Shopping Center. 10mins from Village Market Features: 2 bedroom Appartment with pantry, splash area and built in cabinets in every bedroom. Manicured Gardens. Ample parking and open space within the compund
Two bedroom apartments
5.5M
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KONZA TECHNOLOGY PARK 2 acre commercial plots ranging from 3 - 6 million shillings depending on proximity from Mombasa raod. 10.8 acre plots adjacent to the 2 acre commercial plots. 6 - 9 million also depending on proximity to Mombasa Road.
Development in The area: 2 kilometers from Maanzoni lodge Within the famed
Machakos
county. Note that the county has received a commitment of Sh56.3 billion from investors. Following the signing of an MoU between governor Alfred Mutua and investors after a two day conference at Maanzoni lodge.
Walking distance from
32
Making Dreams Realityâ&#x20AC;?
“Planned investment in the area:
Nairobi hospital will put up
an ultra modern medical center with 200 beds at a cost of more than Sh1.5 billion.”
“In the next 10 years expect
massive Investment in tourism, real estate, health, emergency services and
consumer services.” Planned bypass for trucks and heavy commercial vehicles
Across the road from the planned Konza City Technology park
Making Dreams Reality”
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GREEN GARDEN APPARTMENTS Location: Lavington Luxurious three bedroom apartments, master en-suite and an en-suite guesthouse.
Mahogany floor. Aluminum windows. Spacious pantry, Breakfast table, stove hood for ventilation in each unit.
6 units available. 22million 5 bedroom penthouse
22M
3 Bedroom + Guesthouse
all en-suite
with visitors cloakroom, lounge corner bar, dinning, family room,
master bedroom with a mini lounge and large balcony. Two wings. High quality finishing. Three balconies
One Unit Available
34
Making Dreams Realityâ&#x20AC;?
60M
NEGOTIABLE
MOUNTAiN ViEW MANSiON Mountain View Estate Off Waiyaki Way Main House
Guest house:
Extra Features:
Sunken lounge and fireplace, dining area, spacious kitchen and pantry, 3 bedrooms (all ensuite with balcony access) 1 master bedroom Basement: Living/ Dining room Kitchen 2 bedrooms (self-contained)
Same finishing as main house Separate from the main house includes: Living room/ dining room Kitchen 2 bedrooms (self-contained) 1 master bedroom And self-contained servants quarters
Tanks for adequate water supply Back-up generator Expansive parking and well manicured gardens
Making Dreams Realityâ&#x20AC;?
35
PROPERTY UPDATE AFRICA
Ambani buys 10 upmarket properties in Nairobi Update Via: Business Daily Newspaper The report does not reveal transaction prices for the reported deals, and it is not clear whether the sale of one of the Delta
Towers to PwC for a reported cost of Sh4.4 billion was part of the transactions captured in the financial year.
Consolidated plots owned by Delta Corp cover approximately 27.5 acre, the report says. Indian tycoon, Mukesh Ambani, has deepened his investment in Nairobi’s real estate sector with the acquisition of 10
prime plots valued at
Sh2.9 billion that are to be used for
commercial and residential development. The plots and ongoing development projects are jointly owned by Mr. Ambani’s Reliance Industries and Delta Corp East Africa Limited (DCEAL). Reliance Industries is the majority shareholder with a 60 per cent stake, while Delta Corp holds the remaining 40 per cent. “DCEAL has acquired 10 prime plots of land in Nairobi with a planned developable area of approximately 1.2 million square feet of commercial and residential assets,” says the latest Delta Corp end of year report for up to March 31 2012. Mr. Ambani has in recent years acquired prime plots within Nairobi which he has developed and either sold or rented out to international organisations, private companies and government parastatals.
“With rising demand for both commercial and residential space, areas like Upper Hill, Westlands, Kilimani and Mombasa Road are fast emerging as new commercial centres,” says the report. “Currently, four projects are under various stages of development,” says the annual report,however, without disclosing the location of the projects. The 2011
sale of Delta Centre to the World Bank was reportedly valued at $22.8 million (Sh1.9 billion). The Delta
Corp annual report also says that the company has leased property to the Ministry of Justice, National Cohesion and Constitutional Affairs. The company’s entry into Nairobi is driven by Kenya’s growing middle class, inflows of investment and a promising natural resource industry.
Some of the most recent multi-billion shilling transactions include the sale of the Delta office towers located in Westlands to the University of Nairobi and financial consulting firm PwC, and another block in Upper Hill area, Delta Center, to the World Bank. The Delta Corp annual report says the company
made an after-tax profit of Sh510 million from a turnover of Sh2.2 billion in 2012. 36
Making Dreams Reality”
Size: 100 acres Location: 7km from Oletepesi. A town after olepolos in Kiserian. 30km from Nairobi Price KES 350,000 per acre Size: 120 Acres Location: 10km from Kitengela, 10km off Namanga road, on an all weather maram road. Princess Building
Price: KES 800,000 per acre
Location: Within town off Tom Boya street Price: 240million Transcontinental Building Location: within town off Latema & Tsavo Road 1/4 acre plot Price: 300million
PRIME LAND & PROPERTIES
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LUKENYA VALLEY
1.3M
1/6 ACRE
“Enjoy the Kenyan countryside & amazing views of the Lukenya Hills.” Location
35km from Nairobi and 11km from Mombasa road. Just off Kinanie road and 1km from the Greater Eastern bypass that is under construction. A few hundred meters from iluluwe golf resort
38 6
Making Dreams Reality”
A fish farm, a few kilometers from Lukenya Valley. The developer Mr. Timothy Mahinda has been able to turn the dry area into a green inviting paradise.
â&#x20AC;&#x153;The new road network and improved urban rail systems have opened up the
possibilities of commuting further distances to work, without extending the time taken. Lukenya Valley is designed to take advantage of these new opportunities by offering a home
in the country that is close enough for you to work in Nairobi.â&#x20AC;?
Features Perimeter Fence 8feet up surrounding the estate. Murram roads, Water and Electricity, Storm water drainage, Sewer line will be developed. If you would want to view Lukenya Valley, please communicate with Baraka Njagi on: 0727207313 kwemarealtors@gmail.com
Range of designs available for selection. Common theme of
brown decra type roofs and natural stone and rendered walls
Management company where every plot owner has a share
Each house will have its own sub-lease. Coming with that sub-lease is a share in the Management Company. The residents will manage the estate and provide improved services for the benefit of all.
Making Dreams Realityâ&#x20AC;?
7 39
JUNCTION APARTMENTS Location; 200 meters from Junction Mall 48 Units Available
2 Bedroom All Ensuite
15Million
2 Bedroom Premium All Ensuite
16Million
3 Bedroom All Ensuite + DSQ
18Million
Features Solar panels for water heating Two High Speed Lifts per Apartment Block
Gym, Steam sauna, Swimming Pool, BBQ area, and
jogging track Data / Ethernet cabling, CCTV, DSTV Two parking levels
Century 21 tops in Global Brand Survey Update via: www.property24.com
Century 21 Real Estate LLC, the franchisor of the world’s largest real estate sales organization, announced the results of a third-party global survey that shows consumers identified the Century 21 brand as the ‘Most Respected in the Real Estate industry’.
In the study conducted by global market research firm Millward Brown, the Century 21 brand achieved 96 percent total brand awareness among consumers in the market to buy or sell a home in the past two years or in the next two years.
The study also notes that the Century 21 system remains one of the top recommended real estate agencies in likelihood to recommend and to give future consideration. It was reported that Century 21 maintained its lead in brand awareness among consumers presented with a list of real estate organizations, a position it has held since 1999.
The nearest industry competitor was five percentage points behind. The study also notes that the Century 21 system remains one of the top recommended real estate agencies in likelihood to recommend and to give future consideration. Century 21 has around 8 000 independently owned offices in 73 countries and around 120 000 sales associates.
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Making Dreams Reality”
MUGUMO COURT 3 bedroom apartment
11Million 3 bedroom apartment + DSQ 11.5Million
Features Master Bedroom
is Ensuite. Ample Parking Space. Laundry Area. Balcony. Kitchen Pantry.
Location 10 minutes walking
distance from Junction Mall. Easily accessible
15million 4bedroom with SQ
Storm
Four Bedroom houses, each with DSQ
Gated Community Each House has a gate, Car park, Garden Area in the back & front. Balcony in the master bedroom. Security Fencing, Play area for the children
Park
Location: Zimmerman
Making Dreams Realityâ&#x20AC;?
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PROPERTY UPDATE AFRICA
Commercial Real Estate business booms in Namibia Update Via: www.sacommercialpropnews.co.za The countrywide boom in the real estate sector is now visible in Namibia, especially in Windhoek, which will soon be getting a largest
commercial property development, the 54,000m² Mall of Namibia - The Grove. South African property investment and development company Atterbury (who have a 47% stake in Ghana’s biggest mall; West Hills Mall) will develop Namibia’s largest single commercial property development, the 54,000m² Mall of Namibia - The Grove in Windhoek, with Demashuwa Properties and Safland Property Group. Atterbury Property Developments MD James Ehlers says: “The three-levels
of appealing shopping, restaurants & entertainment at The Grove will open in September 2014, launching Namibia’s dominant retail mall.” The R1.3 billion Mall of Namibia - The Grove is at the heart of the Hilltop mixed-use estate in Windhoek’s fastest growing node, Klein Kuppe. This mixed-use estate will include a hotel, offices, apartments, medical centre and health and fitness centre. Already The Grove’s neighbors include Food Lover’s Market and Metro, creating an exciting retail precinct in Namibia’s capital city, with superb access for local residents, visitors and tourists alike. The Grove has already secured Game, Shoprite, Woolworths, Edgars and Spar stores as anchor tenants.
“The
development has been greeted with enthusiastic retailer interest for its 126
stores with most South African national retailers already represented in Namibia lining up to trade at the mall. Several retail brands have also chosen to make their Namibian debut at the Mall,” says Cobus van Heerden, Retail Director at Atterbury Property Developments. “There is also keen
interest
from local Namibian retailers.”
Entertainment and restaurants are also key ingredients in Mall of Namibia - The Grove. It will include Namibia’s most cutting-edge cinema experience as well as a great variety of contemporary restaurants offering open-air dining under the African Sky, with spectacular
of Windhoek.
views
Other tenants already signed include Truworths, Dis-Chem, Jet, Tekkie Town, Pep, Ackermans, Jay Jay’s, Legit, Sportsmans Warehouse, Rhapsody’s, Vida E, Clicks, Spar, Cappuccino’s and Wimpy. During its construction, Mall of Namibia - The Grove will create
direct employment opportunities for 700 people. Once open,
retailers and centre operations will create between
1,200 and 1,500 permanent employment opportunities.
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Making Dreams Reality”
FEATURE PROPERTY
Kisaju View Park Estate 4 bedroom deluxe mainsionette with staff quarters 5.6millon 3 bedroom en-suite bungalow with staff quarters 3.2million 3 bedroom with staff quarters
3million Features
Location
infrastructure, excellent security, social amenities, schools, commercial and medical centers, electricity connections and piped water. Sewage plant.
60kilometers from Nairobi on the Nairobi-Namanga Road Take a Right Turn, drive for 500meters, then make another right turn and drive for 5kilometers (Follow The Signs). Location: In close proximity of Konza technology city, International Universities and Jomo Kenyatta International Airport.
Each unit is enjoined in a small community of not more than 20 other units which are built around a sizeable mixed use courtyard that allows for children to play. Each community has its own visitors parking, park benches, greenery and so on.
Making Dreams Realityâ&#x20AC;?
43
GreenPark Estate
FEATURE PROPERTY
Location
Off Mombasa road by Athi River, with panaromic views of the Lukenya Hills.
44
“Peaceful environment in a secure and scenic setting with a suberb lifestyle.”
Making Dreams Reality”
FEATURE PROPERTY The reason that Greenpark is an award winning development is because of their attention to detail. All the units have:
Beautifuly crafted ceilings &
cornices. High quality tile or parquet flooring Choice of open plan or closed kitchens Spacious living room and dining areas
Hgh quality kitchen cabinets and wardrobes in all bedrooms
Hand crafted curtain and shears rods Bathroom vanity cabinets and fittings
imported sanitary-ware
Solar heating system Reverse osmosis water filter system Double piped water supply Rain water harvesting system Dhobi area
Choice of aluminium framed
windows or steel with burglar bars Spacious kitchens
Large gardens Patio doors
Five clusters of houses with a grand total of more than
224
600 units. completed
A total of units have been , with the other 376 units being planned to be developed. Each of the five
nursery school, shopping center, maintained recreational areas, paved roads and sidewalks, storm drainage, street lighting and a dedicated security staff and guardhouse.
clusters has a
Making Dreams Realityâ&#x20AC;?
45
FEATURE PROPERTY
Super Bungalow
GreenPark Estate
Each unit is situated on approximately 1/4 acre of land with the plinth area of the bungalow being 180m2 Two ensuite bedrooms with increased wardrobe space Master bedroom with his and hers w.b.h., bathtub, shower and vanity units Large sitting and dining area Two cabro parking places to each house Two bedrooms with shared and enclosed bathroom with vanity units Larger windows in living areas Dishwasher, washing machine provision Water filtering system Solar water heating
15.99 Million Quarter Villa
19.63 Million Bungalow
Each unit is on approximately, 1/4 acre of land with a build up area of 146 square meters Two bedrooms ensuite Master bedroom with bathtub and vanity units Generous living and dining area Two cabro parking places to each house Optional open plan kitchen Solar water heating Water filter system
Four houses of 110 square meters on 1/4 acre plot master bedroom ensuite with large wardrobes Solar heating water Two cabro parking places to each house Spacious open plan kitchen Large sitting room and dining area Water filter system
8.5 Million
Semi - Detached House
46
12.45 Million
Generous master bedroom with large wardrobes Large ensuite bathroom with vanity unit Room for a breakfast table Entry hallway with a visitors toilet Solar heating Ensuite DSQ adjacent to the kitchen Spacious kitchen with separate pantry Large sitting room and dining area Water filter system Two cabro parking places to each house
PROPERTY UPDATE
Is Dubai at it… Again? By Corrine Kihara
Better Homes, which currently has an approximate The second you key in the words “Dubai Real Estate” into the Google search box, the options for investment at your disposal are so vast they may confuse you with their variations. From residential villas and apartments to over the top office space, Dubai is bursting
at the
250 agents servicing the residential and commercial sectors, recruited
100 agents in the last 12 months and is looking to add another 150 new recruits in the coming months.
seams with not only real estate “transaction
hikes” (according to Cluttons’ report of Q1 2013) and greater demands from renters, but a slight raise of the eyebrows from keen observers of this Middle Eastern picture.
Despite all the great tidings of real estate success in the Emirate, there are those who are trying to blow caution into the public’s eye. Corporate Commercial Real Estate Services (CBRE), the world’s largest commercial real estate services firm, stated in its latest report that
Even with the obvious spectacular performance of the emirate’s real estate market today, one
the Dubai
cannot help but wonder whether all this quick
begin to feel the rising cost of living. The firm
gold may be too good to be true.
It has been reported that Dubai house prices have risen for the 16th straight month. According to the Knight Frank Global House Price Index,
9%
residential prices rose by more than in the three months to the end of March this year. The report went on further to document that the
Emirate was the second best performing state out of a considered 55 in the period between Q4 2012 and Q1 2013, only behind China which registered growth of 10.7%. This success has even spilled benefit into growing employment. Better Homes, Dubai’s largest real estate agency (and there are quite a few large firms in Dubai), is planning
to in-
crease its staff by around 60%. This will be by recruiting an additional 150 agents to
cater to the growing demand in the emirate’s real estate sector.
real estate market must be monitored continuously as the residents argues that if greater
laws and
regulations are not implemented, Dubai’s
competitiveness at a global level could be affected. The firm warned that the surging rises in prices could be a little premature. “The residential sector has maintained positive momentum amidst solid market fundamentals and steady economic growth,” the firm’s research paper stated. “However, there is a modicum of concern that the recent
escalation of sales and leasing rates could actually be a little ahead of reality.” The firm also comments on the fact that, while
sales had grown by a very healthy 30% in the first quarter year-on-year, figures have actually dropped since the last quarter of 2012. This goes hand in hand with the fact that many of the sales that have been made have occurred in well established areas of the Emirate, such as Downtown Dubai and Emirate Hills.
Making Dreams Reality”
47
PROPERTY UPDATE DUBAI
A slew of many grand development projects have been undertaken by the 2nd most populated Emirates of the UAE. These include, the very large
Mohammed Bin Rashad (MBR) City,
a mixed use development that will be located in
Dubailand; it boasts of shops that will include the world’s
largest shopping mall, over 100 hotels, a Universal Studios franchise and a public park that is larger than Hyde Park in Central London. Another project is being undertaken by Dubai real estate firm Deyaar, which is to launch two new projects this year and start sales on another major development. Its Chief Executive, Saeed Al Qatami, said that one of the new projects would be an AED500
million ($ 136,128,500
million) residential development in the emirate’s Business Bay district, which it was in the process of securing bank financing for.
The question is, is it too much, too soon? Does Dubai stand to harm its own progress with all these new projects? Jones Lang LaSalle’s Market Overview Report for Dubai recognizes the
impressive progress made by the market but also said that “The challenge is to ensure that this confidence does not lead to exuberance. If the market has learnt anything from the past decade, it is that an extended period of sustained growth is far more beneficial than a short period of unsustainable growth followed by an inevitable crash.”
Let’s see how true that is.
48 40
PROPERTY UPDATE AFRICA
Ghana Real Estate Market promises to flourish in 2013
The Ghanaian economy is currently experiencing an influx of investors from the West, East and the African sub-region. The demand for luxury residential and commercial buildings has been on the rise and building more executive developments in the prime areas of the capital cities will aid in meeting the needs of high earning individuals. Data gathered from the Ghana Investment Promotion Council (GIPC) indicates that the
real estate industry is an attractive sector for foreign investors as it promises high returns. The rise of the Ghanian property market has been well documented in the past decade and there has been an improvement in infrastructure deficit with better prospects for growth still to come.
Millions of dollars are being realized by
private entrepreneurs, especially in the real estate sector and the ever changing skyline of Accra illustrates this well. The private sector is possibly one of the main engines of growth in Ghanaâ&#x20AC;&#x2122;s economy, says Kenneth Ofori, business manager for Devtraco Plus, a luxury real estate company in Ghana. The stable democratic atmosphere and the discovery of oil reserves in 2010 have made Ghana the fastest
growing economy in the West African sub-region.
Devtraco Plus reported this month that they are about to complete Palmers Place in Accra, one of their flagship developments in Ghana, which comprises seven five bedroom luxury townhouses in phase one. These townhouses are triple storey semi-detached homes in a secure complex with a guardhouse, clubhouse and swimming pool. Mr. Ofori further explains that challenges facing real estate companies go beyond the lack of synergy between the property market and the financial sector. Difficulties
attached to the acquisition of land in prime areas, as a result of litigation & complex land transfer procedures, are the main difficulties facing Ghanaâ&#x20AC;&#x2122;s luxury real estate market.
Currently, reports indicate that 80,000 barrels a day are being supplied. As the economy grows, so will the demand for quality residential and commercial properties.
Update Via: www.sacommercialpropnews.co.za
Statistics from the Ministry of Water Resources, Works and Housing indicates a shortfall of approximately 80,000 housing units per
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PROPERTY UPDATE EUROPE
Property Energy Certificates now compulsory in Spain Update Via: PropertyWire. Additional writing by Kwema Realtors Energy performance Certificates (EPC’s) are used to give prospective buyers a detailed look into how energy efficient a
property is; how it can be improved and how much money can be saved. They are used in Europe where harsh weather conditions require them to install extra items like loft (attic) insulation, domestic boilers, hot water tanks, radiators, specially insulated windows and so on. The certificate informs potential buyers or tenants on insulation efficiency and consumption of electricity and gas and became compulsory on 01 June 2013.
The fine for failing to provide one is about 3,000 British pounds (about KES 500,000). EPC’s help in reducing
CO2 emissions into the atmosphere. Recently a law was passed in Spain requiring properties for sale or rent to have an energy certificate which cost between KES 21,000 & KES 49,000 depending on the size of the property. The certificate shows energy efficiency on a scale of A to G, similar to the system used for electrical appliances and brings Spain into line with other European countries such as the UK and France.
The energy rating must be displayed in advertising material. The data is purely informative for potential buyers or tenants. In the case of a low rating, owners will not be obliged to carry out improvements, unless, that is, they want to move up into a higher category. All countries in the European Union are compelled to sign up for a 2007 EU Directive on Energy as part of a strategy to deal with climate change and sees the introduction of the energy certificates. Elisa Sarría, technical director of Tinsa, said that properties built since 2007 should in theory already have an energy efficiency certificate. According to the firm’s estimates, the majority
of homes in Spain would fall in category ‘E’, revealing general poor efficiency levels.
There are exceptions. For example, the law will not apply to some tourist accommodation, properties occupied for less than four months a year and properties whose energy consumption is less than 25% of what it would be for a whole year.
50
Making Dreams Reality”
Sluggish Economy weighs on Zimbabwe’s Real Estate Market Update Via: www.sacommercialpropnews.co.za Zimbabwe has been facing political and financial turmoil for more than a decade, derailing the government’s ability to function and respond to crises, thus adding pressure to the country’s real estate sector. A recent Economic Report for Africa mentioned that Zimbabwe is now ranked
10 economic performers in Africa.
among the top
A recent trend has shown that most retailers are starting to pay more attention to store growth in both South Africa and Sub-Saharan Africa. For a long time some of these companies have been shunning opening outlets in Zimbabwe, mainly because of the economic instability and the uncertainty associated with the country. The adoption of the Greenback has brought about a level of stability and Zimbabwe will undoubtedly attract a few suitors in the retail sector over the next few years or even months.
Retail Market
Retail space remains in high demand, both in the CBD and suburban locations. There has been uplift
60%
in retail prime rents for new lettings in Harare of about during 2012, but the sustainability of the achieved rents is doubtful in an environment of weak consumer spending. The Mall of Zimbabwe, a major new development with 68,000 sq m of retail space, is due to see construction commence in early 2013, with completion slated for 2014. With an estimated cost of
US$100 million (KES 85billion), it will be the single largest private property development ever in Zimbabwe. A notable recent investment transaction is the sale of the Pomona Shopping Centre, which changed hands at a reported price of US$7.8 million (KES 663million), giving a yield of 8% on market rent.
Making Dreams Reality”
51
PROPERTY UPDATE AFRICA
Office Market The take-up of Office space has been poor as a result of the depressed economic climate in Zimbabwe, according to Knight Frank. Occupiers are struggling to meet rent and service charges, and the levels of arrears are generally high. Voids have increased, in some buildings to over
30%. More than a year after it came on stream, the 12,000 sq m of office space in the Joina City development in Harare remains with over
50% unlet. Two significant office developments, the Celestial Park and the Old Mutual project, with a combined lettable area of 26,000 sq m, are currently underway along Borrowdale Road and should be completed within the next twelve months. Property investment activity continues to be restricted by tight liquidity conditions, although notable recent office transactions have included John
Boyne House (4,000 sq m), which achieved US$4.7 million and Star Africa House (2,000 sq m), which sold for $3.55 million.
Industrial Market Demand for Industrial space has reduced in recent years, as Zimbabwe has
become more of a consumer of imported goods than a manufacturing country. Void rates are increasing and rents are depressed. Tenant viability is questionable in the current difficult economy, putting at risk the security of income streams. Industrial
investments
are considered the least attractive of all
sectors and the recent sales that have taken place have been entirely for owner-occupation.
Residential Market The absence of long-term mortgage/loan financing has restricted residential market activity. Some financial institutions have been able to secure external lines of credit to support mortgages for private purchases, but the secured loans have been for relatively small amounts over short periods, e.g. 10
years at rates of
15-18% per annum, making them expensive for borrowers. Nevertheless, the market has seen price
25%
52
increases of up to during 2012. The rental market remains weak because of low disposable incomes.
PROPERTY UPDATE AMERICA
Forcast: US Real Estate prices forecast to keep climbing Residential property prices in the United States rose in the last 12 months to the highest
in
seven years, as the recovery in residential
real estate gained momentum, according to new figures. Property values are expected to keep climbing thanks to cheaper
borrowing costs and renewed consumer confidence at a time
The Case-Shiller Index follows other reports this month that show continued strength in residential real estate. Sales of new homes increased 2.3% in April compared to March, the second highest level in almost five years, according to Commerce Department data. And the median selling price jumped 14.9% from a year earlier to a record $271,600.
when the number of homes on the market is at its lowest for almost a decade. The latest S&P/Case-Shiller index of property
10.9%
values increased on an annual basis, the biggest 12 month gain since April 2006. This comes on top of a February.
9.4% annual increase in
Meanwhile, respondents to the monthly Bloomberg Real Estate Survey are upbeat. “We have a
continued, gradual recovery. The data is solid,’ said Brian Jones, a senior economist for Societe Generale in New York, who projected
a 10.6% increase, the highest forecast in the Bloomberg Survey. Bloomberg Survey estimates ranged from increases of 9.3%
to 10.6%.
The S&P/Case-Shiller Index also shows that on a quarterly basis prices covering all of the US climbed 10.2% in the first quarter from the same period in 2012, compared with a 7.3% gain in the December 2012 quarter. Los Angeles, Seattle, Charlotte, North Carolina, Portland, Oregon, and Tampa, Florida, showed their biggest month to month gains in more than seven years. The year on year measure, which includes records going back to 2001, provides a better indication of price trends, the group has said. All
20 cities in the index showed an increase in year on year prices, led by gains of 22.5% in Phoenix and 22.2% in San Francisco. The smallest gain was in New York, up 2.6%.
Existing home sales climbed, to a 4.97 million pace, the highest level in more than three years, according to the National
Association of Realtors. The median price rose 11%, the fifth consecutive month that property values advanced more than 10% year on year. “Other housing market data reported in recent weeks confirm these strong trends,” said David Blitzer, chairman of the S&P index committee. But he added that at the same time, the larger than usual share of multifamily housing, a large number of homes still in some stage of foreclosure and buying to rent by investors suggest that the housing recovery is not complete.
Lower mortgage rates are helping the market. The average rate on a 30 year fixed mortgage was 3.59% in the week ended May 23, down from 3.78% a year earlier, according to data from Freddie Mac. The rate reached a record low of 3.31% last November. Update Via: PropertyWire
Making Dreams Reality”
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Nairobi Ranked as Fif Cities Predicted to contenders for inv
Update by Kwema Realtor the Business Daily Newsp
fth Among be top vestors
rs and paper
PROPERTY UPDATE AFRICA
Hot Spots 2025: Benchmarking the Future Competitiveness of Cities by The In a report titled
Economist’s Economic Intelligence Unit (EIU) and Citi Group profiling the world’s cities that are predicted to be top contenders for investors’ dollars and melting pots for
fifth out of the seven African countries ahead of Alexandria and Lagos and 112 globally talent in the next decade, Nairobi made it to
(sharing the spot with Hanoi).
While we are ranked 5th in Africa we should be concerned at our low bottom of the table rating. South Africa had the top three African cities;
Johannesburg (66), Cape Town (77) and Durban (95) while Egypt had Cairo at 106 and Alexandria at 117. Nigeria’s capital city Lagos was rated 119. Nairobi was categorized among the “important
emerging cities” with potential to be globally
“In its broadest form, competitiveness
is defined
as a city’s ability to attract capital, businesses, talent and people. The Index
benchmarks the competitiveness of cities at two points in time: today and in 2025,” said the report. New York was top in the overall global ranking while Tehran was at the bottom of the list. Nairobi’s ranking represents a drop of one position from the 2012 ranking, having scored 36.9 out of 100, one more point than last year. Nairobi’s profile as a regional business hub has been growing as seen by the number multinationals, from diverse industries, that have chosen to open shop in the Kenyan capital or have chosen the city as their base for Africa-wide operations.
Tullow Oil, BP Group, Shell, General Electric, Google, IBM, Visa International, Pepsi, Nestle, Foton Automobiles, Bank of India, HSBC and JP Morgan Chase were
competitive. They went on to add that “The EIU analyst team reviewed the list and included established financial and commercial centres (for example, Geneva), as well as important emerging cities (such as Ahmedabad, Ho Chi Minh City, Nairobi, Panama City), which did not meet our initial criteria of population and GDP size.”
granted a license to open a representative office by the Central Bank of Kenya. Industry players said that more can be done to increase Nairobi’s competition and the first place to start would be to revamp the city’s infrastructure.
The report ranked cities based on their
as a major city, say that poor
competitiveness & ability to attract international capital. 54
Global real estate consultants Knight Frank, whose reports on trends have prominently featured Nairobi
roads, interrupted water and power supplies are hindering the city from achieving higher rankings.
PROPERTY UPDATE AFRICA Knight Frank Chief Executive (Kenya), Ben Woodhams, said that poor infrastructure is the city’s biggest problem and at best, private sector interventions are stop-gap fixes. “People are doing the best they can such as running generators but more has to be done,” said Mr. Woodhams. The report also says capital
and talent follow where it is easier to do business and good roads, reliable and constant power are part of this. “A city’s physical infrastructure, financial maturity and global appeal help businesses to operate efficiently,” said the report. Despite the inadequate infrastructure, Kenya’s
capital has a lot going for it especially being the gateway to the East African region, added Mr. Woodhams. “Generally speaking Nairobi is a good place to be. There is a massive population in East Africa and that is why global The Citi-commissioned EIU research will enhance understanding of the factors driving urban competitiveness and illuminate
how the highest performing cities continue to create competitive advantages,” said Citi Chief Executive Michael Corbat.
Kenya’s capital ranked at the tail end of the list in nearly all of the parameters that were used
implying the Herculean task that awaits city planners. The ranking looked at the city’s economic strength, physical capital, financial maturity, institutional character, social and cultural character, human capital, environment and natural hazards risk and global appeal. Nairobi ranked 117 in environment & natural hazards risk,
improving city disaster management plans, improving environmental governance policies (water Specific areas to improve include
quality, waste strategy and air quality),” said Eva Blaszczynski, senior analyst at EIU in an email response.
Other areas where Nairobi ranked poorly and where there is need for improvement
were physical capital which looks at infrastructure and where the city ranked 113, as well as social and cultural character which looks at crime levels in which Kenya ranked 106.
Economic strength was Nairobi’s strongest area at rank 52. “That being said, Nairobi did make progress in this
category, mostly its city Real GDP growth rate which we forecast will be about 5.3 per cent by 2025. Areas in which Nairobi could improve are raising its GDP per capita rate as well as Real GDP,” said Ms Blaszczynski. Knight Frank ranked Nairobi as the city with the fastest
growth rates in rent for high-end commercial property in 2012. With rents in the city’s top areas
17.9%
increasing by ahead of 15 other cities in Africa, Asia, Middle East and Europe surveyed by Knight Frank. The increase was due to growing demand as more multinationals expand to the continent and choose to set up base in Nairobi in addition to entrants of oil and mineral prospecting firms.
said analysts at the EIU.
55