(Especially when buying an off-plan apartment)

Investing in property can be a rewarding and exciting venture, but it also requires careful consideration and research. One of the most important decisions you will make as a property investor is choosing the right developer. After all, the developer you choose will have a significant impact on the success of your investment. From timely project completion to quality workmanship, selecting a reliable and experienced developer is crucial. In this article, we’ll take a closer look at some key factors to consider when choosing a property developer in Kenya for a smooth and stress-free experience.

1. Business Establishment and Experience and Expertise

The length of time a property developer has been in business is an important factor to consider when selecting a developer to work with. Established developers, especially those with a long track record of success, have more experience in the industry and are more likely to be able to deliver quality projects.  By working with an experienced developer you can benefit from their expertise, industry knowledge, and established networks.  A good developer should have a deep understanding of the real estate market and the trends that impact it. They should be able to provide you with detailed information about the property, including its location, amenities, and pricing.

Elegant Properties is a second-generation family business that has been in operation since 1990. Over the years, we have built a strong reputation for delivering high-quality properties that meet the needs of their clients. Our experience in the industry has given us a deep understanding of the Kenyan real estate market, enabling us to identify the best investment opportunities for our clients. 

2. Track Record and Reputation

A property developer’s track and reputation record are the most critical factor to consider when making an investment decision. By looking at the developer’s previous projects, you can get a sense of their experience, expertise, and overall quality of work. It’s important to consider both the successes and failures of a developer, as this can give you a well-rounded view of their capabilities.  Look for a developer with a proven track record of success, especially in the area where you are considering investing. A developer without a track record of atleast a few completed projects should not even be considered for an off-plan purchase.  Click here to see our track record.

3. Quality of Work

When investing in property, it’s crucial to consider the quality of the developer’s work. Look for a developer who is committed to delivering high-quality projects that are built to last. Elegant Properties, for example, uses only the best materials and construction techniques to ensure that their properties are durable, safe, and comfortable. They also work with leading architects and interior designers to create homes that are both functional and stylish.

4. Financial Stability

There’s no greater fear for a homebuyer or property investor than a project going bust. It’s important to work with a financially stable developer to avoid delays or incomplete projects that can negatively impact your investment. The top three red flags for any development are the following:

• It’s essential to ensure that the land the developer is buying is not pledged to any financial institution and should be free of all encumbrances.  This can be easily verified by conducting a search on the title of the property.   

• There is a trend in Kenya for developers partnering with landowners to develop projects together.  Often these partnerships do not end well for buyers of the property and with little oversight on regulation in the country it these projects have an extremely high probability of stalling.  Any disagreement between the partner will result in the buyer of any projects suffering.

• Interest-free payment periods and guaranteed rents in property may sound like attractive offers, but they are often just scams designed to lure unsuspecting buyers into making a poor investment. Interest-free periods can hide other deficiencies or hidden fees, while guaranteed rents may be based on unrealistic projections or unsustainable market conditions.  Both should be avoided.  

In Summary…

Ask these 4 questions.

1. Has the developer been in the industry for more than 5 years?
2. Has the developer completed five or more developments?
3. Have you gone to see atleast one of the developers previous projects?
4. Is the title deed fully in the name of the developer and free of any encumbrances, charges and liens?
5. Is the project a joint venture with the landowner and are there any other 3^rd parties involved?

If the answers to ANY one of the questions is a no, then you should reconsider your investment.  Why risk your hard-earned money?

It important to do your research and ask the right questions to ensure that you are making a wise investment decision. By considering the reputation, expertise, quality of work, customer service, and financial stability of a developer, you can find a partner who can help you achieve your investment goals. 

If you’re looking for a solid investment opportunity with the potential for constant increasing rental income, consider investing in property in Nairobi. The Kenyan capital is a rapidly growing city with a thriving economy, making it an attractive location for real estate investment. Here are some facts and figures that show why investing in property in Nairobi is a smart move:

• Strong economic growth: Nairobi is the economic hub of Kenya and a major player in the East African region. The city’s GDP has grown at an average rate of 5% per year over the past decade, outpacing the national average. This strong economic growth is driving demand for housing and other real estate, making it a good time to invest in property.
• High demand for rental housing: The demand for rental housing in Nairobi is high and is expected to continue growing in the coming years. With a growing population and increasing urbanization, more and more people are moving to the city in search of employment and better opportunities. This creates a constant demand for rental housing, which can provide a steady stream of income for property investors.
• Increasing rental prices: As demand for rental housing in Nairobi increases, so do rental prices. According to data from the Kenyan Property Developers Association, rental prices in the city have been steadily increasing over the past decade. In 2010, the average monthly rent for a two-bedroom apartment in Nairobi was KES 25,000 (about $250). In 2020, the average monthly rent for the same type of apartment was KES 50,000 (about $500). This trend is expected to continue, providing the opportunity for investors to increase their rental income over time.
• Attractive returns on investment: Investing in property in Nairobi can be a lucrative venture. According to a report by Hass Consult, the average return on investment for rental property in Nairobi is around 8-12% per year. This means that for every KES 1 million (about $10,000) you invest in a rental property, you can expect to earn KES 80,000 to KES 120,000 (about $800 to $1,200) in annual rental income.

Stable real estate market: Despite fluctuations in the global economy, the real estate market in Nairobi has remained relatively stable. This makes it a relatively low-risk investment compared to other asset classes.

Located just south of Nairobi’s central business district, Syokimau is a rapidly growing neighborhood that offers numerous benefits to those who own real estate there. From its convenient location to its thriving economy, Syokimau is an excellent place to consider buying property.

One of the main advantages of owning real estate in Syokimau is its proximity to the city center. This allows residents to easily access the bustling city center. The recently constructed Nairobi Expressway further enhances connectivity, providing a direct and fast route from Syokimau to the CBD. This expressway significantly reduces travel time by bypassing heavy traffic congestion on other major roads, making commuting more convenient and time-efficient for residents. For example, a trip from Westlands to Syokimau which previously took a minimum of 1 hour now takes an average of 12 minutes!

Another benefit of owning real estate in Syokimau is the area’s strong economy. The neighborhood is home to a number of businesses, including banks, supermarkets, and restaurants, which provide employment opportunities and contribute to the local economy. In addition, Syokimau is home to the Jomo Kenyatta International Airport, which is a major economic driver for the region.

There are also notable malls and hotels in close proximity to Syokimau. Some popular options include Gateway Mall, Imaara Mall, NextGen Mall, Capital Centre, and Eka Hotel, which offer a variety of shopping, dining, and accommodation choices for residents and visitors alike.

In terms of real estate, Syokimau offers a range of housing options to suit different budgets and preferences. From modern apartments to traditional houses, there is something to suit every taste and need. In recent years, the area has seen a surge in the construction of new developments, which has led to an increase in the supply of housing and helped to drive down prices.

One of the biggest benefits of owning real estate in Syokimau is the potential for appreciation. As the area continues to grow and develop, the value of property is likely to increase. This means that those who own real estate in Syokimau stand to benefit from the appreciation of their property over time.

In addition to the potential for appreciation, owning real estate in Syokimau also offers a number of other financial benefits. For example, owning a property can be a good way to diversify your investment portfolio, as it provides a tangible asset that is not subject to the same fluctuations as stocks and other securities. Additionally, owning a property can provide a stable source of rental income, as demand for housing in the area is likely to remain strong.

In terms of quality of life, Syokimau is a great place to live. The area is home to a number of schools, hospitals, and recreational facilities like the Nairobi National Park, making it a convenient and comfortable place to raise a family. It is also home to a number of parks and green spaces, which provide a welcome respite from the hustle and bustle of city life.

People have to take care of many things if they have a plan to purchase apartments in Nairobi.  Some of these factors include resale value, quality, expenses, location, and many other things. People can also purchase a house but the same factors need to be checked. Here are some of the tips, which will help the people to purchase apartments in Nairobi Kenya, or a house.

Criteria

Before deciding to purchase a house or apartment in Kenya, people need to check about various criteria, which they have to follow. There are many criteria available and people need to choose the relevant criteria which they need to purchase the property. Here are some of the criteria for apartments and houses, which people have to follow.

Apartments

The factors on which the purchase of an apartment include the following:

• Address of the apartment
• Housing state
• Budget
• Expenses of co-ownership
• Transfer of taxes
• Taxes

All these expenses have to be borne by the buyer. In this case, the difference between a house and an apartment is negligible.

House

The calculation of the price of a house is done according to its specifications. The price is also decided upon different facilities in and around the house and these include:

• Distance from the city
• Garden and its size
• Swimming pool
• Ancillary cost and transfer duties should also be checked and they are to be paid by the buyer.
   

Things to be checked before buying

There are many things in the apartment and house that people need to check before finalizing the purchase. These things are discussed here.

Apartment

• Location of the apartment which will include neighborhood, the orientation of the building, distance from important places like grocery shops, shopping malls, parks, etc.
• Provision of new services and urban planning
• Condition of the accommodation
• Any repair or replacement to be done and it’s budget
• Regulations of co-ownership which will include expenses distribution, the amount paid by the co-owners
• Internet connection and it’s quality
• Local taxes

House

Here are the things, which people need to look for if they are going to purchase a house.

• Location of the house and places around it
• Accommodation and it’s quality
• Things to be repaired or replaced
• Amount of various bills like heat, water, electricity, etc.
• Internet connection and it’s quality
• Rules regarding the house and the land
• Specifications of the house

Reasons for purchasing an apartment in Kenya

If a person has decided to purchase an apartment, he must be aware of various types of furnishings as the cost of an apartment is based on these furnishings. Apartments are of many types like a house, apartments, furnished studios, and many others. If an apartment is costly, people can opt for a furnished studio. The facilities available in an apartment may or may not be available in the studio. Another advantage of apartments is less deterioration as the tenants in apartments live for a long time. People need to check the profitability of the apartment before purchasing it. Other advantages are as follows.

• The price of the apartment depends on its location. The criteria discussed are also the basis on which the cost of the apartment is decided.
• The investment in the apartment depends on surrounding areas like parks, tennis court, gym, garden, swimming pool, etc.
   

There are some disadvantages also which are as follows.

• The price of the apartment depends on its location. The criteria discussed are also the basis on which the cost of the apartment is decided.
• The investment in the apartment depends on surrounding areas like parks, tennis court, gym, garden, swimming pool, etc.

Reasons for purchasing a house in Kenya

Research and studies have shown that most of the people in Kenya love to live in a separate house. People can rent it and it has been estimated that tenants live in a house for five to six years. This is the main advantage. The disadvantages are as follows:

• The cost of a house is high.
• The maintenance cost is high.
• No space for garden or green space

Wrapping Up

If people want to have tenants, then apartments are good as they have many flats and tenants live there for a long to so chances of deterioration is less. The cost of house is high and its maintenance cost is high. In spite of this, people like to live in separate houses rather than apartment.

A lot of homework is required for purchasing properties in Kenya. When we say homework, it literally means testing the characteristics of the residential project, the credibility of the owner, the legal status of the property, and the neighborhood. There are several factors you need to keep in mind while looking for properties.

Area:

Probably one of the most highlighted aspects of real estate pricing. Rightly so, because in a good neighborhood, you better buy the worst house at a reasonable price than the best one in a poor neighborhood at a more “pocket-friendly” price.

Communication:

However, as much as we all want a fantastic view of the ocean or mountainside, if you’re late to work every morning, this view would not be beneficial. Different demographic groups may look for some attractive features related to geographical location, urban areas entry, main roads, and transport arteries.

Condition:

Improvements in the renovation of kitchens and bathrooms are perceived as potential “deal breakers” in real estate transactions. Inspection reports assess market leases, fair prices, and market levels.

Features:

This also applies to the time that a house was on the market. Longer is equal to lower awareness rates or incorrect market prices. Lower sale prices would impact the willingness of tenants to pay for comparable properties in the city.

Space:

A bigger home has a higher price level than one that barely meets the occupancy ratios’ necessary criteria. It is partly attributed to the expense of construction [per square foot].
Single-family households are often more likely to attract because of additional supplements in terms of privacy and compound space. 

Urbanization:

Changes in gentrification (the reconstruction of middle-class neighborhoods, which culminated in the relocation of low-income residents) have led to price increases in some regions. This will allow the developer to take advantage of the increasing developments in the forecast of anticipated consumer demand and to be advised by analysts.

Take the help of expert agencies to ease your stress of properties in Kenya’s quest. The best offers residential, industrial, and new construction, offering real estate services for sales, lettings, and property management.