Kenya’s real estate market is projected to record positive growth this year with younger millennials and Gen-Z expected to play a key role in growing uptake of affordable housing units.
Mizizi Africa Homes Chief Executive Officer, George Mburu says access to finances, among bigger barriers to entry for most first time home buyers in this generation have been eased significantly to favour uptake of affordable units.
“We exited 2020 with a number of dynamics like reduced mortgage rates, opening up pension schemes to purchase of properties and the new perspective of a house being a critical factor in defence against COVID-19 pandemic. It has triggered many to think of investing in homes that will more than likely increase housing and real estate activities in 2021,” said Mburu.
Last year, the government instituted a number of interventions to help more Kenyans enter into the home ownership journey as it races to meet its 2022 target of developing 500,000 units under affordable housing commitments of the Big 4 Agenda.
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August 2020, The Kenya Mortgage Refinance Company (KMRC) announced that banks and SACCOs will extend home loans to Kenyans earning Kshs. 150,000 and below at an annual subsidised interest rate of 7% compared to a market rate of 11.9%.
In September, Treasury Cabinet Secretary, Ukur Yatani signed into law the amended mortgage regulations requiring pension schemes to amend their rules to allow members access up to 40% of their savings before retirement for house purchases.
“This era of low mortgage rates and opening unlocking of financial access is going to offer many people greater purchasing power, especially for first-time home buyers,” said Mburu.
He adds, “There is also a unique market, that of millennials who are turning 30-years old, a critical period when most people look to settle their families in decent housing who we expect to significantly create demand.”
These developments coupled with positive economic growth sentiments fro 2021, Mizizi Africa Homes say offers prospective homeowners a favourable investment environment.
“The interventions by the Government offer a big relief to individuals who lost their jobs or their businesses were hit hard by the pandemic,” he said.