Kenyans are pooling investment funds to increase property development and meet growing demand for housing.
Project managers bring together investors within the construction industry to fund projects that would run into the millions. In a single move, the group’s holistic approach will mean that investors, project managers and construction companies will all work together.
The housing deficit in Kenya currently stands at 150,000 units, with an actual construction figure of 35,000 units per year, leaving a huge demand for homes, especially in the low to mid market. However, some experts in the country believe that this type of group financing will indeed stimulate the generation of large-scale real estate development for low- to middle-income families.
Current statistics from the Department of Housing show that nine out of ten projects are developed for the high end market, leaving the middle and low income sectors virtually ignored.
Joe Macharia, Managing Director of Bora Capital, said, “Half of our investment will be in multi-family housing targeting middle income people. Lobby chairman Patrick Kariuki said satellite towns such as Athi River, Thika, Ongata Rongai and Kikuyu would be ideal sites for this particular type of housing.
Kenyan fund managers, Genesis Kenya, said real estate developments in Kenya can offer higher returns than stocks and shares. Bora Capital said that although it is an unparalleled new concept, the project is expected to spur a much-needed increase in real estate investment in Kenya.
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