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Mansiondeal:Real Estate In Kenya
Friday, 22 October 2021

Mansiondeal is a Kenyan real estate marketplace that connects real estate agents and developers with potential homebuyers and renters. Mansiondeal has vast data of Nairobi homes for sale and for rent in Kenya . Mansiondeal:Real estate in Kenya

Since 2000, the Kenyan real estate market has experienced exponential growth due to the country’s GDP which is also growing and development of infrastructure including improved roads, railway and airports.
 
Kenya real estate
 

Residential real estate in Kenya

 
There has been a boom in the residential sector since the early 2000’s with increased urbanization and population growth in the country. Residential sector has had the highest demand and has accumulated a national housing deficit of over 2 million units. Many Kenyan developers have pivoted to affordable housing because of the high demand rising from the low and middle income earners in the country.Affordable housing now caters for over 60% of the population living in the cities and small towns in Kenya.
 
For the period of five and a half years growth of house prices increased year after year owing to the stability of real estate investments. The period was characterised by renewed investor confidence in the Kenyan economy and general increase in disposable income by the population. In the same period there was an increase in agitation by banks to improve their loan book and therefore the increase in real estate demand.
 
The economy of a country is defined by many factors including aggregate demand, real gross domestic product and even the rate of inflation, indicatively. an increase in housing demand and prices has a positive effect on the wealth of homeowners which results in capital gains for home owners. Capital gains strengthen house owner's confidence in the economy, which in turn increases aggregate demand and hence people buy more. The more confidence people have in the economy, the more they are willing to invest. This will lead to equity withdrawal which means that most homeowners will be willing to remortgage so as to earn more profits on their capital.
 
Whenever house prices increase, an upward trend in economic growth is expected. However, rising house prices on the other hand may also put pressure on inflation leading to an eventual increase in interest rates. A decrease in the prices of houses in Kenya can have adverse effects on the economy, such as a reduction in wealth, no equity withdrawal, and less economic growth. A fall in house prices means that the capital gains potential of homeowners is reduced and hence their wealth is limited.
 
A fall in house prices will also lead to homeowners' being reluctant to withdraw their equity. Since homeowners' equity will fall, their capital gains will diminish so they will be unwilling to re-mortgage and probably decide to wait until the prices move higher. This will as a result lead to a decreased consumer spending rate. When consumer spending falls, economic growth will also reduce.
 
Kenya’s capital city Nairobi is a capital hotspot and is considered a leading economic hub in Sub-Saharan Africa. The commercial sector has also grown exponentially over the last 20 years as the economy grows and big firms and corporations set up their offices in Kenya.
 
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