This is a reminder that buying an apartment in Nairobi is a fool’s errand. People who bought apartments in Kilimani 10 years ago can only sell them for 68% of the buying price today. Also, the rent they collect today is 8% lower than what they collected ten years ago, before accounting for inflation (meaning that the real rent/selling price is much lower).
Someone who sank 20 million in an apartment in Kilimani 10 years ago can only fetch 13.6M today before taxes, broker fees etc. That’s a 6.4 million loss at least.
Uyu hajajenga. He watches from the sidelines and relies on fake data from fake companies like Hass Consult covered in fancy brochures to hoodwink Kenyans like him.
Hass Consult is an outfit comprised of illiterate Zoomalian Arabs. Look at their projects. They all look different from the renders they have on their fancy website. Their projects are dog shit with the exception of Enaki. How then can you trust their data? What credentials do those Zoomalians have to tell you, a Kenyan, about how things are on the ground? Na hamnanga akili. That’s how mzungus come to Kenya and convince you that they know more than YOU, a native Kenyan on the ground. Meffi ya kuku nyinyi bure sana.
Alafu looking at the data they shared, it’s common sense that while the price of units has gone down, SO HAS THE size in square meters. Surprise surprise, it’s even MORE expensive than it was 10 years ago.
Tumieni akili. You’re Kenyans. You should know things much better than foreigners like idiot Zoomalians creating fancy reports to hoodwink the fake mindo krass like @Gaines who trust OTHERS more than their own credentials and street smarts.
Alafu where in that report does it say that 0.68 FOLD is a decrease? Where’s that info? That’s an assumption. Common sense dictates that prices have increased by that much since 2015.
Do you serious believe that a 10M apartment in Kilimani in 2015 is now 6M? Wacheni bangi. Read the report albeit being fake.
I blame illiterate Zoomalians for not being able to present things clearly. Do you expect a GOAT FUCKER to all of a sudden acquired the skills to make statistical reports? Stop taking illiterate Zoomalians seriously. Have you ever met a smart Zoomalian in your life? These guys can only do biashara ya kawaida that doesn’t involve brain power.
Endea school fees Kagumo kijana. You are a disappointment to your school. Also, learn the difference between a “0.68 Fold change” and a “0.68 Fold increase”. The report states it is a “0.68 Fold change”. Kumbaff.
Investing in Kenyan real estate is pure gambling if you are not in the elite class. If you manage to survive conmen and hungry govt agencies, the next battle you will eventually have to face is the lack of zoning laws enforcement and govt infrastructure services which you have 0 control over.
You successfully invest in apartments or build a home just for the county to bypass zoning laws and the neighborhood/ estate becomes a concrete jungle with deteriorating roads from tippers passing through on a daily, lack of a sewage system, KPLC refusing to upgrade their grid that now has to handle 10x more consumption, everyone drills a borehole so future water problems will be insane once the cartels pounce, crazy traffic from all the high density apartments, hawkers and criminals moving in wanting to capitalize on the population boom, the list goes on. Which investment vehicle is safe for middle - upper middle class in this country? Govt can change capital gains tax rates any time they want to gatekeep us peasants from achieving wealth.
To some extent tru. Where we bought in Mombasa, the association banned apartments except on the first row next to the main road. When we got our plots , the place was under 1 million, now it is over 10 million.
There has been pressure to change the rules because a quarter of the estate remains unsold but people have voted No every time, nearly unanimously.
Meanwhile parts of Nyali are seeing the exact Kilimani effect, in particular Mogadishu where Somalis turned a green, leafy area into another version of Mkomani and parts of New Nyali too. The older buildings have to demand less rent especially under Rutonomics. The rise in real estate prices on the Island and in Bamburi stalled after last year’s floods as well because all of a sudden there was a deluge of properties on the market made up of water damaged buildings and the ones built on swamps, areas with poor drainage like close to Bombolulu and the middle of Bamburi as well as nearly the entire Mvita etc.
There ARE places experiencing the opposite effect, namely parts of Westlands and Kileleshwa. There is demand for specific types of housing units and specific locations in both estates that has led to positive returns the past 10 years.
In short, you build those Chinese style squeezed units that make up 90% of Kilimani, Hurlingham and Syokimau, expect negative returns in the long run. But the 90sqm one bedroom apartments in Kileleshwa and Westlands are always full(See General Mathenge Road for example.Asians dominate that road and demand is high as they continue to migrate away from the Somalis taking over Parklands). The up to 250sqm 3 bedrooms in the same estates are also often occupied. It is the Chinese micro-units and those Kikuyu Gothics which unfortunately make up half the market like the ones in the lower parts of Westlands which are almost approaching the price of the ones in Ngara that are problematic
Actually, this phenomenon has happened. I can attest to some dropping in value due to the changes around them.
I know of some one bedroom units whose price dropped by over 1.5 million because the “uninterupted views” they had when the plots in front of them were unsold are no longer a selling point as a Chinese contractor came and built megastructures that dearf that building and cast a permanent shadow on it. People are still not buying.
it’s not 68% as you put it. it’s actually a 100% loss. Think about it this way, if you had place your 10 million in bonds 10 years ago with an annual compounding of 10%, it would be worth 27 million today.
The same amount sank into silly land of kileleshwa (by the way i have a sneaking suspition that most high-end places are only worth a lot of money because the names sounds exotic not becuase theire is anything prime about them) Is now worth just 5.5 million.
Lakini huwezi convince buroti maguta maguta psychos like @Abba who insist it is an investment for their children. Abba are your kids unable to inherit bank accounts?
