Anthony Magondu - Daebak Investments

With the by-pass and Thika Highways under construction Nairobi is experiencing a property boom which is expected to last for 20 years in the housing industry as more than 1 million houses are built. Our investment company is today positioned to grow this industry and we will be able to help Kenyans in the Diaspora willing to share in this economic boom through our Professional services in Investment, Consultancy, Development and Management.

The following is an analysis of real estate process in Kenya:

Land Purchase
Nairobi currently can be sub-divided into four regions. First, there is the  East region extending from City Stadium all the way to Komarock. Second, there is the Kiambu Area that is broken down into three roads namely, Nairobi to Banana, Nairobi to Kiambu and Nairobi to Thika, Third, we have the Athi River Kitengela region. Fourth, there exists the untapped South of Nairobi park. Most of these real estates markets extend to the neighboring counties of Kiambu County, Machakos County and Kajiado County. Currently the best land that would give the best return would be purchases in Kajiado County North By-pass and Machakos County South By-pass. The prices are still relatively low.

Construction
The industry is currently dominated by Asian and Indian Construction Companies. However, Kenyan engineers have started exploring and setting up companies that are offering the same high quality products.

Purchase of Real Estate 
Several well developed estates are offering houses in well developed systems with good management practices that people in the Diaspora purely looking to invest in Real Estate can grow their wealth in these products without ever having to keep travelling back and forth with the appointment of a management and consultancy company.

Tenants
As home of the Central Government and the financial hub of East Africa as well as the Industrial Center of Kenya, Nairobi County may currently be growing its economy at over 10% in GDP. This has led to a high demand in real estate as more and more jobs are created in the region. Any good estate, well developed with water, power, sewer, security and management system and within 20 Kilometers and touching the supply roads, will get tenants.  

Financing
Deposits in the 44 banks were about Kshs 500 billion in 2005 and today are about Kshs 1.5 trillion. This money market in Kenya has been on the rise and projections based on this growth show that this money market is expected to grow to Kshs 2 trillion by December 2012. With the Central Bank approving that about 45% of these Customers Deposits can be used in Mortgage market, this will mean about Kshs 1 trillion will be available for loaning to land purchasers and constructed house purchasers. By 2010 the amount loaned out was Kshs 61 billion to the mortgage industry. This is expected to grow tremendously. 

Diaspora Kenyans Investment
Diaspora Kenyans who have already purchased land and can meet 10% cash deposit of a project have a good opportunity to tap into this money if they want to venture into property investments. Currently there is no well defined system to give loans to people who are not physically in Kenya. However with a good developer such products can be explored.

For good investment projects please contact us on info@daebakinvestments.com