The dynamics in the real estate industry are constantly changing and 2022 is no different. We expect to see more price drops in certain places in Kenya, a rise in new technology trends and so much more. If there is a trend you need to be on the lookout for that will help your business and investments grow, then you need to be at the top of it.

In this article, we will discuss:

  • Real estate price drops
  • The affordable housing project and what it means to real estate firms
  • Sustainable buildings

Real Estate Prices Drop in Satellite Towns

For the first time in a long time in Kenya, prices for houses in satellite towns dropped on an annual basis. This is because of the poor economy in the country which has caused property seekers to adopt a wait and see mentality before investing in real estate. With many units remaining vacant, landlords and developers were forced to reduce their prices to be in line with the ongoing trend to avoid the risk of losing business.

Affordable housing project and what it means to real estate firms

More Kenyans are investing in the low-cost housing scheme, with over 280,000 applications already registered in the system. Kenyans are not purchasing the more expensive units sold by private developers. They have adopted a wait and see mindset in the hopes of getting cheaper options from the government.

The project is meant to provide low-costing housing but developers should not shy away from collaborating with the government just because it has low returns. It will change the narrative that is going around that property in Kenya is too expensive to own.

Additionally, with the exit of the old Ksh 1,000 notes and the government’s efforts to fight corruption, Kenyans are expecting some stability in the sector. Some people felt that a lot of “stolen” money was being sunk into the real estate sector.

Sustainable Smart Buildings

Smart buildings can change the real estate industry in various ways. Developers should embrace the idea of creating sustainable, smart spaces that consume less energy like the Tatu City which generates renewable energy to serve homes and other surrounding buildings. They should include more automation processes in their buildings and use technology to help reduce the carbon footprint. Solar energy can power buildings during the sunny season which will save electricity costs and take advantage of natural light.

Are smart buildings a viable option?

One major challenge with constructing smart buildings is the cost implications. It is an expensive process and requires expertise which is not easy to find in Kenya. This means that because of the high construction costs, buyers will pay high prices to cover up for the developer costs. What then does it mean for the already existing buildings? Will developers try to upgrade them to fit this narrative?