House prices in Kenya increased by a marginal 0.2% in the second quarter of 2015 compared to the first quarter’s 2.75%, according to the latest Kenya Bankers Association Housing Price Index released today.
Kenya Bankers Association Chief Executive Habil Olaka said the marginal increase is attributed to the stabilisation in demand and supply caused by a slowdown of economic growth and the emergence of microeconomic instability.
KBA Director of Research and Policy Jared Osoro said there is high demand for apartments as compared to bungalows and maisonetes, in line with the first quarter. “There is much more movement to apartments by middle income earners. There is evident popularity of apartments and the older types of bungalows are in demand primarily for the fact that they were developed on large pieces of land that can now be re-developed,” Mr Osoro said.
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Faster price movements were observed on houses in high-end localities such as Nairobi, Kisumu and Mombasa. This is because of the availability of social amenities as compared to low-end regions. Major urban areas are facing an influx in prices.
Kenya Bankers Association-HPI provides analytical information to investors and policy makers on the trends in the housing sector.
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