Over the last quarter of 2019 and the Start of 2020, buyers in the real estate have been making cautious investments with many showing interests on affordable projects with higher returns and those that give them some financial freedom, says George Mburu from Mizizi Africa homes.
Today, potential home and property owners are exposed to adequate information and education around real estate and this has gone a long way in influencing market behavior. Mizizi homes has announced its Ksh 54 Million off-plan housing project, Penguin Estate completely sold out within three months after launch. The company attributes the faster than normal uptake of its units to growing interest and preference in off-plan units over the last quarter of 2019 as customers shied away from costlier finished units on the back of unfavorable economic climate.
Off Plan Perks
Investors today prefer off-plan units because of its many benefits. For off-plan units, the purchase prices are lower than average and this has attracted a big number of first-time buyers who secure property below market value. Strong capital growth, ability to resell at a profit before completion, small deposits and staged payments are just some of the perks that come with purchasing off-plan units. Homeowners are also looking for high-quality finishes and trustworthy developers with clear and open project implementation plans.
Kiambu County, for instance, has shown rapid growth in the real estate, with many companies setting up in the vast acres of land. For example, a 16-unit real estate development that comprises of luxurious 3-bedroom bungalows selling at Sh. 3.2 Million each for cash buyers and targeted at middle-income buyers. Installment buying attracts Sh. 3.5 Million per unit upon paying a deposit of Sh 1.5 Million with the balance clearance in 10 months.
“Our mission is to empower more Kenyans to own quality and affordable homes. We know most customers are now opting for investments that offer an alternative to paying rent, offer flexible payments, higher returns and deliver financial freedom. We want to help them through their journey,” said Mburu.
For some, first-time buyers can leverage on this opportunity to secure funds and collateral for re-investment in the next projects. Not only are property sellers targeting the local market, the companies largely hope to attract foreign investors in the future.