Thika Greens Limited CEO Charles Kibiru said that the estate’s results outstrip the national averages in real estate returns, giving hope for the rise of the sector after slow growth following high interest rates, a weak shilling and the forthcoming Kenyan elections.
“Some of the serviced plots sold six months ago are now worth 1.5 times their buying prices and we expect the return to rise rapidly as the project infrastructure and golf-course is completed before the end of the first quarter 2013,” he added.
The developer observed that the close to double capital value has also been driven by increased interest in affordable luxury living and the unique lifestyle integrated in Thika’s first golf city.
In June 2012, the annual Wealth Report published by Citi Private Bank and global real estate managers Knight Frank, reported that luxury homes in Nairobi and the Kenyan coast were the best-performing prime residential property markets in the world.
Compared to other well-known global locales, Nairobi and coastal towns experienced the highest rise in property prices in 2011 globally.
According to Knight Frank’s tracking Prime International Residential Index (PIRI), out of the 71 best prime residential property locations surveyed, Nairobi recorded the highest growth with a 25 percent increase for high-end residential properties. The Kenyan coastal resort towns came second with a 20 percent increase.
Kibiru noted that this makes Thika Greens a world leader based on its current track in capital appreciation.
“Thika Greens has generated high interest from local investors, first home owners and Kenyans in the Diaspora and this is driving our sales” he said.
“This demand is leading to the appreciation and our very first buyers are the biggest beneficiaries,” he added.
In three years, the development, in three phases, has recorded unique progress running ahead of its original schedule, with 960 plots in phase one, 45 percent of phase two and 60 percent of phase three all sold out.
“We offer home buyers a serene, luxurious and secure environment as we help actualise the social pillar of Vision 2030 to decongest Nairobi city and other urban centres,” he explained.
“I bought my plot with inbuilt infrastructure like roads, water piping and security systems two years ago and it’s now worth 1.5 times the buying price,” a buyer at Thika Greens Steven Njoroge revealed.
“This means that after constructing, the property itself is set to be worth more than two times my initial capital investment,” he added.
The development is expected to deliver up to 4,000 new homes in a fast growing locality within Thika Municipality and result in value creation of close to Sh60 billion, thus providing a significant boost to the local economy.
Sales of the development began in 2009, with the focus in the last two years on infrastructure and amenities that are now catalyzing home constructions on the site.
Some 34 kilometres (km) of water piping and 22 km of road have already been completed in phase I alone, while 68 percent of roads have already been constructed in phase II.
“Thirty-two self-build houses are currently under construction and our architects are already working with even more plot owners, most of whom are set to begin building. We expect by the end of 2013, 300 constructions will be ongoing,” Kibiru said.
Thika Greens development is a controlled development off Thika Super Highway that aims to develop three unique gated residential communities.
It was incorporated on December 29, 2008, on some 1,706 acres of land in the outskirts of Nairobi, but within the 100 km radius of Nairobi’s metropolitan boundary.