NAIROBI, Kenya, Feb 2 – The prices of houses in Kenya has largely remained the same despite a suppressed private sector credit expansion.
According to the latest Kenya Bankers Association House Price Index, house prices rose marginally by 0.68 percent during the fourth quarter of 2017 compared to 0.42 percent in the third quarter.
Some areas however witnessed better price improvements than others. These include Athi River, Mavoko, Ngong, Ruaka, Syokimau, Embakasi and Kahawa Wendani among others.
“The search for affordability has tended to steer both buyers and investors to the lower-middle income to middle-income property segments,” said KBA Director of Research and Policy Jared Osoro.
Access to capital is evidently integral in influencing the demand and supply dynamics in the housing market.
Despite credit constraints, the Index report predicts that potential home buyers, who held back on decisions to invest, last year, will gradually enter the property market in the coming months.
According to the report, this is mainly because the economy is anticipated to perform relatively better this year.