3 Reasons Why Cost of Houses for Wealthy Kenyans Increased
Houses prices for prime property in the country recorded a steady rise according to a report published by Knight Frank in February 2023.
In the report for the second half of 2022, three factors influenced the price of prime property sought after by the wealthy.
The price of prime residential properties recorded a 3.7 per cent annual increase in Q4, 2022, following a 2.8 per cent annual increase in Q3, 2022.
From the report, the last high-quality stock of homes for high-net-worth individuals was a major contributor to the high prices.
A collage of two mansions located in Nyari Estate, Nairobi
In various studies, the wealthy in Kenya have unique tastes in the house preference ranging from the environment, and amenities to the house designs.
Some of the estates preferred by the rich include Muthaiga, Kitisuru, Red Hill, Spring Valley, Nyari, and Loresho, among others.
Secondly, the peaceful and calm electoral period in August 2022 also increased house prices.
According to real estate experts in the past, sellers and buyers shied away from buying property due to the uncertainty of the results and the economic impact of one administration on the next.
In a past interview, HassConsult research and marketing manager Sakina Hassanali argued that long-term real estate investments do not fluctuate around elections, given that projects have long-term horizons and return projections.
Conclusively, the growth of multinationals in Kenya also affected the cost of prime residential property in the country.
These were listed as international development agencies that have taken over the Kenyan market, offering a variety of unique home options to the rich.
Interested homeowners can choose between multi-million homes comprising studio, one, two, and three-bedroom units in various exclusive areas.
A luxurious mansion