REAL ESTATE

Bungalows, maisonettes uptake dips as Kenyans rush for apartments

Share
An apartment building in Lavington, Nairobi County
Share

Kenyans bought more apartments than bungalows and maisonettes between October and December 2018, The Kenya Bankers Association (KBA) House Price Index Q4 shows.

According to the report, uptake of apartments grew 64% from 27.03% in Q3 to 76.3% in Q4 to beat the uptake of bungalows whose uptake plunged 67% to 12.1% from 37.84 in Q3.

Buyers also shied away from acquiring maisonettes with sales plummeting 67% to 11.6% from 35.1% in Q3.

KBA’s report attributed Kenyans’ preference for apartments to affordability meaning that money was the biggest determining factor in the choice of house that buyers acquired during the period under review.

“The extent of dynamism in homeowners’ preferences with respect to house types reveals the rapid shifts in preferences among homeowners and the rise in demand for apartments should be seen in light of its affordability to home buyers given the lower cost of construction per unit on the developers’ side,” reads the report.

Price and location where developers acquired land to construct the apartments was also key as the houses were cheaper in the lower segment cadre making it easy for buyers to acquire.

Read: Oversupply leads to sharp fall in rent and house prices in Nairobi

Besides the pricing, the age of the house, number of bedrooms, number of floors and the number of bathrooms were the other factors that buyers carefully considered before choosing which house to buy.

See also: Why serviced apartments are on the rise in Nairobi

2 Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

PAST ARTICLES AND INSIGHTS

Related Articles
EACC chief executive Twalib Mbarak speaking during the event
BUSINESSNEWSSACCOs

EACC Moves to Deal with Corrupt Practices in Cooperatives Sector

The EACC (Ethics and Anti-Corruption Commission) has presented a report to the...

Equity Group
BUSINESS

Equity Group Half-Year Net Profit up 32% to KSh 45.5 Billion

Equity Group Holdings Plc, Kenya’s leading regional lender with subsidiaries in Democratic...

KCB Kenya
BUSINESS

KCB Plans to Float a KSh300 billion 5-Year Bond in October

KCB Bank Group has announced plans to raise KSh 300.0 billion (US$2.32...

Konza City
FEATURED ARTICLETECHNOLOGY

Konza Seeks Chinese Assistance in Setting Up its Digital Backbone

Konza Technopolis has partnered with China’s Guodong Network to accelerate the tech...