Over the past year, the value of the Kenya Shilling has significantly decreased, resulting in a decline in the exchange rate with the US dollar from an average of Sh117.95 in 2022 to Ksh153.15 presently.
The swift decline in value has raised worries among investors from both the local and global spheres. However, for Kenyans residing in nations such as the United States, United Kingdom, Canada, and Australia, the weakening currency offers a distinctive chance to venture into the residential real estate market in Nairobi. This piece will delve into factors that render real estate investments attractive for Kenyans living abroad.
Favourable Exchange Rates
One key benefit that diaspora investors possess in the present economic situation is their ability to tap into advantageous exchange rates. As the shilling loses ground against leading foreign currencies, Kenyans abroad can leverage more purchasing power. As a result, their earnings from overseas can be converted to the local currency and afford them better financial access to the local real estate markets.
For Diaspora Kenyans, investing in residential real estate in Nairobi brings not just extra income but also the possibility of increased capital gain in the long run. This investment option has proven to weather economic fluctuations well over the years. Additionally, the rapid growth occurring both inside and outside Nairobi suggests that this real estate sector has massive potential for appreciation. With urbanization spreading at a fast pace in Nairobi and beyond, this trend underlines the massive potential for appreciation.
Investing in real estate not only presents the possibility of financial gains but also serves as a means to diversify one’s investment portfolio. Diversification is crucial for both expansion and stability and tangible assets such as real estate offer an added sense of security. Despite being distant from their property, diaspora investors can still reap the rewards of rental income or explore the potential of Airbnb. This combination of rental earnings and long-term capital growth contributes to the establishment of a robust and comprehensive investment portfolio for those residing overseas.
Investing in Nairobi’s residential real estate sector goes beyond personal benefits. It also contributes to Kenya’s overall economic growth and development. By investing in this sector, diaspora Kenyans play a vital role in supporting the country’s economy. The effects of a weakening shilling extend beyond the construction industry, as it creates a ripple effect that affects other economic sectors like restaurants, retail stores, and furniture outlets. Ultimately, investing in real estate generates growth prospects that power economic advancements across Kenya as a whole.
Diaspora investors currently have the opportunity to achieve significant profits from favourable exchange rates and improved affordability. Investing in properties in Kenya offers several benefits including portfolio diversification, potential capital growth, and economic development. However, the diaspora Kenyan community needs to conduct extensive research before making any investment decisions. Additionally, seeking advice from experts is vital to identify reputable developers with a proven track record of trust and excellence in previous projects.
Choosing a developer with a proven track record of delivering projects on time, following safe building practices, and having sufficient financial resources is essential to ensure the safety of one’s investment.