Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

Don’t expect a housing bubble burst soon

Ken Kaniu, the Chief Investment Officer at Stanlib said even though demand for housing in the country is still above supply, property prices should begin to stabilise in the next decade/FILE

Ken Kaniu, the Chief Investment Officer at Stanlib said even though demand for housing in the country is still above supply, property prices should begin to stabilise in the next decade/FILE

NAIROBI, Kenya Jul 10 – The real estate bubble is not about to experience a burst anytime soon, according to an financial expert.

Ken Kaniu, the Chief Investment Officer at Stanlib said even though demand for housing in the country is still above supply, property prices should begin to stabilise in the next decade.

“One of the key ingredients of a bubble is the presence of properties being sold via debt and very low interest rates, as people borrow over and above their capability, Kenya has the opposite.”

“We have seen property prices escalate in Kenya three times since the year 2000 very rapidly; that kind of growth is not sustainable! We will not see another 300 percent growth in the next 10 years – we will also not see a collapse – what we are seeing now is that people are becoming more sophisticated, raising questions about the properties they are buying and therefore you will see prices beginning to hold,” he said.

Kaniu said interest rates in the country are still high with credit as a factor in purchasing a property below 10 percent.

“In Kenya prices they are actually going up leading to people developing their own property rather than buying one in the open market,” he stated.

He also observed that developers were now targeting counties as demand for commercial properties increase.

“Counties need malls for shopping, they need proper three star and four star hotels for meetings, offices and there are more opportunities, which has led to property rising in counties,” he said.

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...

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...

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

Coronavirus

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