Even though property in Nairobi is already overvalued there is a group of developers and home owners trying to sell their properties at obscene valuations that don’t match even the inflated standards.
An example is this
There is no way that house is worth 50m realistically. Especially if you take into account factors like location, neighborhood and the relative prices of properties around the city. If you ask the seller they normally tell you that after adding their cost of construction, financing costs and desired profit this is the price they get. But that valuation model does not take into account the aspect of value to the buyer.
If there better offerings in the market being sold for much less why should your property cost this much? Especially if those properties are in traditional luxury areas as compared to yours which is not. The area may be upcoming lakini bado haijafika. Some are in gated communities with amenities like 24 hour security and swimming pools yet yours in stand alone na zinauzwa at a lower price of course but sellers hawawezi kubali. Thoughts by fellow kijiji analysts like @Gaines are appreciated.
Consider the fact that the house hasn’t sold yet. Furthermore, it’s being heavily advertised precisely because nobody is biting. Therefore the market is on your side and it hasn’t yet accepted that price. The owner may be forced to reduce the price or just rent it out in the long run
Such houses tend to be massively overpriced na utapata brokers kama 50 hapo katikati. Wenyewe huuza nyumba na mashida zao zote. If you combine the delusions of the owner and greed of brokers unapata that 50M price tag.
Most of these houses huishi kwa market until the owner capitulates silently. Kuna nyumba zimekaa soko for more than 3 years na zitaendelea kukaa tuu. That usually happens mwenyewe akifanya too many improvements on a house without considering its location. Past a certain point, spending more money on a house does not increase its value because you can’t change its location. Wenyewe hufikiria just because they blew millions on the house buyers should always compensate them for that. That’s not always true. Ukiunda mansion kama za Muthaiga in some remote and insecure area you will eat a big loss ama ukae na nyumba yako.
You go , view the property and ask all the required questions. Then ask to meet the owner yourself and make an offer. Tell them you have given them a month max to consider and give owner your number.
This is the kind of thinking that will forever make kenya remain a shiethole because you believe good houses should only be built in muthaiga. If you go to countries like Britain you will find that houses in rural and remote areas are just like those in cities.
I am very happy that today in Kenya the quality of houses has really improved outside muthaiga and runda, and even in rural areas you will find those muthaiga like houses. Therefore there is nothing wrong with someone in ruiru building a muthaiga like house. Mzungus in kenya do it all the time and when they go to nanyuki, naivasha, vipingo, diani etc they build same high quality “muthaiga” houses in those remote locations and still sell the houses at a premium. So let local developers transform ruiru, kitengela, syokimau, our rural villages etc to the new muthaigas.
The problem is valuation and selling point. If you buy a ranch property, mountain property, golfing properties, beach front property in remote areas with the right views at the right price there is nothing wrong. These properties have unique selling points. But if you sell a house at 50m yet a person can buy land and build a similar but smaller house 50 metres away for 25m uko na akili sawa kweli.
If youre marketing towards Nairobi city dwellers, and you compare it to to other offerings at that price it is a raw deal.
50m na unakanyaga matope ukiingia, the access roads ni shida tupu, judging by the stacked water tanks maji ni shida, on a 50X100 where you can literary have a conversation with jirani - either value ya pesa kenya has gone kabisa ama those who have a lot of money have gotten to a place where their thought process has become compromised.
I travelled to Mozambique a couple of times, and honestly I have really considered acquiring a beach front plot huko,and its in Maputo, at less than Ksh 5m,trully a buroti maguta maguta, that I can put up a simple beach boutique hotel in the future. Exaggerated land and house prices in Kenya are just a scam.
