Key regions: United States, China, Japan, Germany, United Kingdom
The Real Estate market in Kenya is experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trajectory. Customer preferences in the Kenyan Real Estate market have shifted towards urban living and modern amenities. As the population continues to grow and urbanize, there is a greater demand for housing and commercial spaces in cities. Customers are looking for properties that offer convenience, security, and access to essential facilities such as schools, hospitals, and shopping centers. Additionally, there is a growing interest in sustainable and eco-friendly properties, reflecting a global trend towards environmental consciousness. Trends in the Kenyan Real Estate market indicate a rise in property prices and increased investments. The demand for housing, both for residential and commercial purposes, has led to a surge in construction projects across the country. Developers are focusing on creating mixed-use developments that offer a combination of residential, commercial, and recreational spaces. This trend is driven by the need to optimize land use and provide integrated living and working environments. Furthermore, there is a growing interest in real estate investment trusts (REITs) as a means of diversifying investment portfolios and accessing the real estate market. Local special circumstances play a role in the development of the Real Estate market in Kenya. The government has implemented various initiatives and policies to promote affordable housing and attract foreign investments. These include tax incentives for developers, streamlined approval processes, and the establishment of a mortgage refinancing company. Additionally, the growth of the middle class and the rise of the urban population have contributed to the demand for housing and commercial spaces. This has created opportunities for developers and investors to capitalize on the market potential. Underlying macroeconomic factors also contribute to the growth of the Real Estate market in Kenya. The country has experienced steady economic growth in recent years, with a stable political environment and improved infrastructure. This has attracted both local and foreign investors to the real estate sector. Additionally, low interest rates and favorable mortgage terms have made homeownership more accessible to a larger segment of the population. The government's focus on infrastructure development, such as the expansion of roads and the construction of new airports, has also contributed to the growth of the real estate sector. In conclusion, the Real Estate market in Kenya is experiencing growth and development due to customer preferences for urban living and modern amenities, trends in property prices and investments, local special circumstances such as government initiatives and the rise of the middle class, and underlying macroeconomic factors including economic growth and infrastructure development. These factors create a favorable environment for developers and investors in the Kenyan real estate sector.
Data coverage:
Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.Modeling approach / Market size:
Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
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