The real estate industry in Kenya is constantly changing. Therefore, you should always be on the lookout for emerging trends. This year the industry has registered several changes that any property developer, landowner, or renter will be interested in. So, to stay on top of business, here is a list of five real estate trends you should look out for in 2020.
1. Reduced Rental Prices in Satellite Towns
You’ll be surprised to know that the rental prices in satellite towns in Kenya have been dropping annually for the past three years. The country’s poor economic situation has forced Kenyans to delay real estate investment plans, hoping the situation will get better with time.
This has caused a ripple effect leading to more vacant units, which have forced property owners and developers to subsidize rental prices. Investors and property owners can take advantage of the situation and reduce land prices, an all-time high demand asset.
2. Affordable Housing Projects
The government housing project provides affordable homes as compared to private property developers’. For this reason, most Kenyans are opting for affordable housing schemes by the government. A good percentage has taken a back seat, waiting for private property developers to reduce prices.
This is an excellent opportunity for property developers to partner with the government, even though the projects have low returns. They are a better option than not yielding to market demands, only to lose business.
3. Sustainable Smart Buildings
Tatu City is one project in the country that incorporates sustainable building technology. This project is currently in progress and hopes to use renewable energy to power houses and buildings in the surrounding area.
Property developers are adopting the same. Property owners are taking advantage of sunlight by using solar power. Another emerging trend in this space is homes with automation systems.
4. New Strategies to Fill Office Spaces.
The number of empty office spaces is all-time high. To mitigate the situation, landlords and developers have adapted innovative ways to increase the occupancy rate. Some landlords are offering serviced offices, while others are giving discounts. A good number have eased the lease terms by removing the mandatory three months’ upfront rent payment.
5. Leveraging Technology
Real estate firms are embracing technology like never before. There is an increased number of firms advertising their properties on different online property development sites. Property firms are also using social media and email marketing to build relationships with potential homeowners, increase lead, and ultimately improve sales.