Kenyans are pooling investment funds to increase property development and keep up with a growing housing demand.
Project managers are bringing investors together within the construction industry to fund projects that are reportedly running into the millions. In a unique move, the group’s holistic approach will mean investors, project managers, and construction companies will all be working together.
Kenya’s housing deficit currently stands at 150,000 units, with an actual construction figure of 35,000 units per year, leaving a huge demand for houses, especially in the low to mid end market. However, some experts in the country believe that this type of group funding will indeed spur the generation of large-scale property development for the low to middle-income families.
Current statistics from the Ministry of Housing show that nine out of ten projects are developed for the high-end market, leaving the middle and low income sectors virtually discounted.
Joe Macharia, Managing Director of Bora Capital commented, “Half of our investment shall be in multi-family housing targeting middle income earners.” The lobby Chairperson, Patrick Kariuki, has indicated that the satellite towns such as Athi River, Thika, Ongata Rongai and Kikuyu would be the ideal sites for this particular type of housing.
Kenyan fund managers, Genesis Kenya, have stated that property developments in Kenya can offer higher returns compared to shares and equities. Bora Capital stated, although a new concept with no comparable, the project should spark a much needed increase in property investment in Kenya.
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