The Year 2020 Property Industry Outlook in kenya
The year 2020 has started in earnest.
As property developers, we are extremely Optimistic in regards to the year 2020.
There are several reasons why there is a positive vibe.
1. We believe that the national government will fulfil its promise not only to pay suppliers over 65 Billion pending bills, but that TAX refunds will be accelerated this year moving forward.
This means that more money will be infected into the economy.
2. Another aspect that is giving us hope is the increase in Diaspora remittance that is projected to go past 250B according to Central Bank data.
3. We expect a better year in real estate as Kenyans continue giving high preference to real estate investment according to 2018 survey conducted by a local pension administrator, Enwealth Financial Services in partnership with Strathmore University – 62.8 per cent of Kenyans opt for land and real estate when it comes to securing their investments
4. The current political stability, massive development of infrastructure across the country is also encouraging developers to move out of the city and build estates in the suburbs. These houses are cheaper and affordable to Kenyans. Kenyans have now realized and accepted the fact that they can live in places like Kitengela, Kajiado, Ruiru, Machakos and still comfortably work in Nairobi. This mindset change will continue to boost real estate industry.
5. The removal of the interest capping will allow more Kenyans to borrow and finance their real estate needs. This will boost sales for the developers
In conclusion, we see a far much better year in doing business for the real estate industry this year compared to last year 2019.
George Wachuiri is the CEO, Optiven Group.