Mombasa real estate looking up after polls

Players in real estate in Mombasa have projected that the property market will rebound following the peaceful elections this month.

Sales in the property market had stagnated in the run-up to the General Election due to fears of a repeat of the violence that rocked the country after the 2007 disputed poll.

SALES DECLINED TO ZERO AFTER ELECTIONS

At that time the sector in the coastal town took a nosedive as buyers shunned property, citing uncertainty. The situation has changed for the better in the past five years but the run up to the August 8 elections heightened tension, resulting in reduced sales.

Mr Anthony Murithi, an adviser at Kenya Projects which focuses on houses targeting middle- and low-income earners in Mombasa, Kilifi and Nairobi, said he was hopeful things will improve.

“Before the elections we used to sell up to 20 housing units per month but as the polls neared, sales declined to zero."

But after the peaceful elections we are getting more inquiries, which are being converted to sales,” he said.

Mr Paul Kinoti, a director at ACL Real Estate Consultants, said there were signs that all was well, with prospects for high sales in the coming months. Following inquiries before the elections, he said, rental houses were already registering improved sales.

“After the peaceful polls I have realised sales of rentals on long-term leases of up to two years. We are talking about high-end rentals or furnished apartments going for up to Sh200,000 per month,” he said.

Meanwhile, Mr Imran Noorani, the director of Airport Centre Mall, said although the movement of mall space was slow, people had started showing confidence.

SATELLITE TOWNS

Airport Centre Mall sits on 2.5 acres in Changamwe, a kilometre from Moi International Airport. It is 80 per cent complete and is expected to be ready for occupation in November, Mr Noorani said.

The Sh700 million mall has a ground and first floor with a built-up area of about 172,000 square feet. It will have more than 250 parking slots on the ground floor and basement.

“The ground floor is 100 per cent occupied while 50 per cent of the first floor has been sold. There are clients such as banks and supermarkets, besides other international brands,” he said.

Notably real estate developers have proposed innovative ways of dealing with the thorny issue of the proliferation of slum areas in urban areas, saying investors could play an important role in addressing the problem.

Many slums are located mostly in prime areas that are attractive to investors.

Kenya Projects founder and chief executive officer David Kanyi said the government, in collaboration with the counties, could open up satellite towns and invite investors to build low-cost housing units in exchange for plots in slum areas.

“For instance, slums around Tudor creek occupy prime plots and rather than keep evicting those living there, we can build them affordable houses at Mwakirunge (north of Mombasa Island) and free the land at the creek for developers,” he said.

Last week, Mombasa Governor Hassan Joho said his administration would build a satellite town at Mwakirunge. The move is expected to reduce the pressure on the island, which is currently congested, with neary every space taken up.

In Mombasa, slums are located in some of the most prime areas including Nyali Estate, where an acre goes for Sh200 million and Mombasa island, where prices range between Sh300 million and Sh500 million per acre.