Oversupply leads to sharp fall in rent and house prices in Nairobi

An oversupply of prime residential properties in Nairobi is applying pressure that’s forcing buying prices and rents downwards, according to Knight Frank in its Kenya Market Update report for the second half of 2018, which could signal a cooling off in the cost of housing in the capital. Prime residential prices fell by 4.5% in 2018, compared to a 0.9% drop in 2017, as the segment tilted in favour of buyers. Rents in the top-end of the market also dropped by 1.3% in 2018, although a slower decline compared to the previous year’s 2.8%. Mr Ben Woodhams, Knight Frank Kenya Managing Director said sustained demand from expatriates and middle-to high-income earners keen on location and quality of houses helped reduce the decline in high-end residential rents. In the commercial property segment, he noted that the uptake of Grade A office space continued rapidly in the second half of 2018, although prime rents stagnated at Ksh130 ($1.3) per square foot per month owing to the current oversupply. “This report shows absorption of Grade A office space rose by 63 percent in the six months compared to the first half’s uptake,” he said. “Serviced office providers emerged as major takers, with this…

1.5 percent housing levy pay cut for workers to start March

Formally employed workers could start paying a 1.5 percent salary deduction beginning March 1 to finance construction of cheap houses by the State. Transport, Housing and Infrastructure Cabinet Secretary James Macharia Tuesday said the government has reached an agreement with the workers’ union, which will pave the way for an end to court injunctions that had stopped the deduction. “We had injunctions that halted the process, but the parties have agreed to withdraw them so we are ready to proceed with the project,” said Mr Macharia in Nyeri during an inspection of ongoing public projects in the county. Employment and Labour Relations Court Judge Hellen Wasilwa had granted the order to halt the deductions following an urgent application by the workers’ umbrella body, the Central Organisation of Trade Unions (Cotu) in December. Cotu secretary-general Francis Atwoli had faulted the tax, saying there was no public consultation before its implementation. The levy is to be deducted from each employee’s basic salary and remitted to the National Housing Development Fund (NHDF). Violating orders Cotu has, however, not made public its position on the matter. An application filed by the Ministry of Housing asking the court to lift the injunction against the deduction…

Get a money makeover with Kenya’s top money minds

Robert Kiyosaki says, “It is more important to grow your income than cut your expenses. It’s more important to grow your spirit that cut your dreams.” The greatest disservice you can do to yourself is to continue relying on that one source of income. What if it, too, suddenly gets cut off? Where does that leave you? Only poor people oversleep. If you go on the road at 4 AM you will see Prados, Landcruisers, and other big cars. At 6 AM is when you start seeing the Proboxes and Vitzes. That should show you how early wealthy people wake up. When did you last see Bob Collymore trapped in traffic? If you have an 8 to 5 job, what are you doing between 6 and 8? Do poultry rearing, get a dairy cow – anything it takes to get an extra income during your extra hours.Dr. Paul Kibicho, CEO, Panorama Consulting Co. LtdIt is ‘do what makes you money, not what you love’ The worst business advice I ever received was ‘do what you love’ at my New York University graduation commencement. I have since learned ‘do what makes you money’ works much better for me personally. I know,…

Real Estate Trends in Kenya 2019: What to Expect

The real estate industry in Kenya in 2018 experienced highs and lows. The country witnessed high mortgage rates averaging between 12% and 15% and there was demand for affordable housing. Another major thing that was going on was the political unrest that took place in 2017 and spilt over into 2018. There was a lot of tension which meant that investors did not want to commit to undertaking huge, money-intensive projects. Businesses adopted a wait and see attitude in hopes that things would get better. And then the handshake happened and brought about some sort of stability. Different areas of the economy started picking which lead to a change in real estate as well. Most investors came back to Kenya and businesses started experiencing growth. What should investors, home buyers and sellers expect to see in the real estate trends in Kenya 2019? Continue Reading Source: BuyRentKenya

Court Clears Way for President Kenyatta to Put Up 7,000 Housing Units in Nairobi’s Shauri Moyo Estate

The government can continue with plans of putting up more than 7,000 housing units in Nairobi’s Shauri Moyo estate, the High Court has ruled. The ruling comes after 300 civil servants moved to court seeking to have the plan stopped until the government provides them with alternative accommodation. The government wants to demolish the existing old structures in the estate, where the civil servants are living, and put up modern houses under President Kenyatta’s affordable housing pillar. In her ruling, Justice Wilfrida Okwany says that the relationship between the government and the civil servants is that of a landlord-tenant and the former has the right to do whatever he wants with his property as long as the tenant is given adequate notice to vacate. The judge further notes that the applicants failed to prove that they cannot secure alternative accommodation and dismissed their argument that there are school going and disabled children in the houses. Under the low-cost housing plan, President Uhuru’s administration plans to construct more than 500,000 units for sale to Kenyans in the next four years. Source | Mwakilishi

How to Set Up Your Home Office to Be More Productive

Working from a home office has its pros and cons. You get to work from the comfort of your house and avoid the hustles of dealing with the commute of going to work. You also create the space to your own liking and decorate it however you want. But it can also get distracting if you don’t discipline yourself. There is no one to constantly remind you of your working hours or monitor your productivity. Hence, you will find yourself taking unnecessary breaks to catch up on TV, preparing a snack or even sleeping. That is why, when setting up a home office, you need to think about how to put it together to increase productivity. Which Colors Work Best in a Home Office? You cannot ignore the psychology of colour. Colours bring out certain moods and emotions in people. They change a person’s energy and physical reactions. Colours play a role in architecture. Therefore, deciding which colour to have in your home is imperative if you are going to make a home office work to your benefit. Green is a neutral colour. It brings out a relaxing, comfortable, fresh and peaceful environment. Concentration levels are high in a green office space….

The Ultimate Moving Checklist

Moving to a new house is exciting but it can get overwhelming if you don’t plan appropriately and on time. You might be a procrastinator who gets away with doing things last minute but this is not one of them that you will get away with. One thing people ignore doing when they are moving is planning weeks ahead before the moving date inches closer. They want to look for transport and pack and do last minute packing before the moving date. Don’t be one of those people. Planning ahead and creating a moving checklist will make your move stress-free. We have come up with the ultimate moving checklist to help you know the important things you should do before you move, on an actual day and right after you’re in your new house. 8 -12 Weeks Before Moving Saving Moving is an expensive affair. You just don’t wake up decide to move. You have to budget for different aspects such as finding transport money and paying your movers. You also need to budget for rent and deposit for your new house. Some landlords will ask for 2-month’s rent deposit and you have to save some money. Unless you have…