Focus shifts to middle, low class

Low- and middle-income earners will be the main focus of the four-day Kenya Homes Expo that opens today at the Kenyatta International Convention Centre.

Developers have for years focused on the upper class, but a recent announcement of tax breaks for low-income developments and saturation in high-end properties has raised interest in the underserved segments.

The expo organisers say this year will see a huge number of exhibitors who are looking to tap into the lower middle and low-income housing opportunities.

“The company has entered the market with homes designed specifically to provide hardworking Kenyans with the opportunity to join Kenya’s booming property market,” said Ravi Kholi, the managing director of Karibu Homes, which styles itself as a developer of affordable homes.

“We believe that access to decent, quality housing should be available to all Kenyans, not just the upper echelons of society,” he said.

KEY DRIVERS

Other exhibitors targeting this segment include Soil Merchants, Daykio Plantations and Cytonn Investments.

Kenya has an annual shortage of 150,000 housing units, mainly in the lower end of the market, while developers have concentrated on the more lucrative middle- and high-income segments. These two segments have been the driver of the real-estate boom in the last decade, but analysts now say that the lower-income housing segment is the next frontier for real estate investors as the high-end market becomes saturated.

Data from the Central Bank of Kenya shows that the average mortgage size is Sh8.3 million, indicating the high cost of residential properties, which has prevented most Kenyans from owning homes.

The expo will also feature the rising agri-business property trend. Under this model, one buys a piece of land, invests in a greenhouse where an agri-business company grows crops  and gives a part of the profit to the land owner. The concept will be showcased by developers like Diamond Property Merchants and PRC.

Also on show will be roofing companies like Rafiki Roofing Mabati, Riflotek and Rexe Roofing.

Developers of luxury homes will also be exhibiting. Some of the properties on show will be Malibu Court, Duchess Park and Kitisuru Terraces.

The expo, the 24th  since its inception  in Nairobi 13 years ago, has drawn more than 200 exhibitors  from the real estate, finance, interior décor and design, building and construction industries.