Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Rent soars in Kenyan property market

Hass Consult Annual Report indicates that rents in Upper Hill, South C, South B, Thika and Nyali rose more rapidly than in any other suburb by 19 to 23 percent compared to 2012 while Lavington saw rises of up 2 percent as consumers opted for more accessible areas among them Kileleshwa and Kilimani.

Hassanali says the opening of many new headquarters and offices along Mombasa road and the heavy traffic fuelled the rise in both rents and house sales prices in the South C and South B suburbs.

In 2013 apartments took up 45.3 percent of the market while semi detached took up 20 percent of the market and detached houses took up 25.7 percent of the market.

Hassanali says Muthaiga, Brookside, Lavington, Langata and State House are experiencing falling prices with many of these areas no longer development hotspots.

She says that there has been very little uptake of mortgages backed by high interest rates that remained unchanged in the fourth quarter of 2013 at an average of 16.89 percent which has made houses unaffordable and expensive to build due to high debt burden.

“Demand is bulging in rental properties even as developers are being deterred from new construction by flat sales prices and rising cost. The sum is ever higher rent, in population made up of landlords and tenants,” she said.

Standard Chartered Bank offered the most competitive mortgage rate in the final quarter of 2013 with their limited Christmas offer of 12.9 percent with other front runners in the sector being CFC Stanbic, Barclays, National Bank and Housing Finance.

Consolidated Bank continues to offer the country’s most expensive mortgage at 19 percent followed closely by Equity Bank, Family Bank, Diamond Trust Bank and Chase Bank respectively at 18 percent.

Pages: 1 2

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...