House on nine acres in lower Kabete bought for Sh765m

A new wave of property development is pushing up the prices of homes to new highs with an old colonial house set on about nine acres in Nairobi’s Lower Kabete being sold for Sh765 million.

The sale by Knight Frank has made the property among the most expensive in Kenya, surpassing the Sh565 million luxury home in Nairobi highlighted by the Business Daily on Monday.

The property is currently unoccupied and the buyer acquired it with an eye on developing it for business or residential homes in the future.

Property developers have put Kenya among countries with the most expensive real estate in Africa as the country fast develops into a major economic hub.

Real Estate agencies are now concentrating on high end property mainly in Nairobi and Mombasa where clients are rushing to buy property which they later develop into flats and other forms of residences sold at premium with lifestyle and amenities as the major selling points.

According to Knight Frank, a real estate consulting firm dealing with exclusive prime residential property across key destinations in Africa, the new interest for property around Nairobi is responsible for the development of mega projects that are fast coming up.

“The old building on the plot will be knocked down and a high rise building will soon come up. Such property is a rare catch that our clients are ready to part with whatever amount of money just to have it,” said Knight Frank’s managing director for Kenya, Ben Woodhams.

“What our clients are looking for is not what is on the ground for now but what one can do with such property in the next five to 10 years from now. They are anticipating that there will be no such land to buy in the future.”

FUTURE OPPORTUNITIES

The company sold the property last year through bids.

Mr Woodhams said buyers of such property are not in a hurry to develop but are looking for opportunities for the future and the new trends in real estate.

“Those who are buying property in such areas in Nairobi have seen the great potential as the locations are developing into commercial hubs,” he said.

The four bedroom house, which belonged to a European, has been bought by a Kenyan investor for re-development.

Mr Woodhams said most of the buyers for such high end property are Kenyan and that it has not been easy to get international buyers largely due to insecurity. This, he said, means that business is still good despite the withdrawal of foreign investors in the industry.

Knight Frank clients include foreign missions, banks, oil companies, international NGOs and other multinationals. Other property in upmarket areas like Karen, Muthaiga and Lavington are going for between Sh60 million and Sh150 million, sometimes more.

In Karen a five-bedroom house on about 0.40 hectares with well-manicured gardens goes for Sh120 million.