Home | Kenya Real Estate | Real Estate has made People Millions than any other Field!

Real Estate has made People Millions than any other Field!

Font size: Decrease font Enlarge font
David Karangu, Atlanta Businessman and James Ruitha, M.D National Housing Corporation, Network. David Karangu, Atlanta Businessman and James Ruitha, M.D National Housing Corporation, Network.

As Infrastructure projects are developed in Kenya the Real Estate market will explode for those who are ready to think big and invest in this sector. Like multi-millionaire David Karangu advise as he talked to Kenyans was: “Real Estate has made people millions than any other field. Talk to James Ruitha from National Housing Corporation.” The boom of real estate is about to take off as the LAPSSET project of about $16.5 billion (Kshs 1.65 trillion) gets underway.

As the real estate development market aligns itself with the project in the projected route this could be to the tune of more than $30 billion (Kshs 3 trillion) of new wealth created in the next 30 years in about 20 cities or towns along the route. Anyone could be a millionaire. The projection is LAMU City alone will have a population of 1.2 million by 2050 and need about 300,000 units of housing. So how does one get in this field?

There are different Strategies to enter in the real estate

Investor & Buiding Developer
This is where one does the whole project from buying land, to finding contractor and looking for tenant. This approach which many in the Diaspora have tried is cumbersome for many who live abroad and work full time. Whereas one can state they used less actual money when everything including their time is factored this has proved to be more costly especially due to the slow development process and poor quality product.

Partnership as an Investor Developer with a Building Developer
This is where someone comes up with the asset of say land, land and cash or cash, and then enters into development agreement with a building developer to achieve the desired real estate development. Also called the professional approach, the building developer who is an expert in the field, develops the strategy of development and the investor the financing strategy and the outcome is a binding agreement that leads to the desired buildings completed for rent or sale as per set agreement. This type of approach is the one that could be explored with NHC and other building developers by those in Diaspora with land.

Conceptualized Idea Investor
This is where one becomes an investor in a conceptualized idea development and the product is developed as set-up. These types of developments vary and are based on sustainable developments. The best example is the Kenya University Project that will see the investor role reduced only to finance development in well defined tailored products. This will normally give an investor with limited finances the best option to become a developer.

Investment Purchase of Completed House
This is the most popular investment. This mainly involves a person putting up a deposit and gets a mortgage loan on a completed house. In this case the person is more of a buyer and the house outputted is normally almost at current market price. This type of purchase also called the secondary purchase will normally take more time to build wealth for someone looking to build wealth in the real estate. However this is a good product and can also be explored with corporations like NHC or other developers. 


  • email Email to a friend
  • print Print version
  • Plain text Plain text
No tags for this article
Rate this article