Kenyans are pooling investment funds to increase real estate development and keep up with the growing demand for housing.
Project managers are rallying investors within the construction industry to fund projects that reportedly run into the millions. In a unique move, the group’s holistic approach will mean that investors, project managers and construction companies will work together.
Kenya’s housing deficit is currently 150,000 units, with an actual construction figure of 35,000 units per year, leaving a high demand for housing, especially in the low and mid-range market. However, some experts in the country believe that this type of group financing will in fact stimulate the generation of large-scale real estate developments for low- to middle-income families.
Current statistics from the Ministry of Housing show that nine out of ten projects are developed for the high-end market, leaving the middle and low income sectors practically discounted.
Joe Macharia, Managing Director of Bora Capital commented, “Half of our investment will go into multi-family housing for middle-income people.” Lobby Chairman Patrick Kariuki has indicated that satellite cities such as Athi River, Thika, Ongata Rongai and Kikuyu would be ideal sites for this particular type of housing.
Kenya fund managers Genesis Kenya have stated that real estate developments in Kenya can offer higher returns compared to stocks and shares. Bora Capital stated that, although it is a new concept without comparable, the project should generate a much needed increase in real estate investment in Kenya.
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