Real estate sector in the country has grown by 2.6 percent in the second quarter of 2014 according to the Kenya National Bureau of Statistics (KNBS).
The Gross Domestic Product (GDP) and the gains in it are very high. This is necessitated by the gap in supply and demand making it a flourishing industry.Managing Director at Lamudi Kenya Dan Karua said: “It is without a shadow of a doubt that the property market in Kenya is strong, this is evident through the property prices in the country. The real estate sector is surely a key pointer for the growth of an economy.”
The government is coming up with measures that would bolster the real estate industry. With the injection of 280 Megawatts of geothermal power by the end of the year, is set to lower electricity prices drastically from Sh. 4.79 in October to Sh. 1.79 per kWh by December. This will create an enabling environment for businesses to set up and expand their operations which have been ailing due to the high cost of power bills that made Kenyan industries uncompetitive.
The government is putting in place processes that will cut down the electricity prices in households with projected injection of 5000 MW by 2017.Dan added: ‘With the rapid urbanisation, population growth and expansion of the middle-class remain the main drivers of Kenya’s property market.As the government comes in to lower the environmental impact assessment fees charged by National Environment Management Authority (NEMA) that stands at 0.1 percent of the project with a minimum of 10,000 shillings, will lower the cost of construction. This is a clear indication on the government’s intention to create a conducive environment for investors.”
As we marked Mashujaa Day the President Uhuru Kenyatta, in his speech said that the infrastructure industry will create jobs for thousands of people. Kenyatta said that the planned construction of roads, of over 10,000 kilometres set to commence in December and end in 2017, will potentially create 137,000 direct jobs according to government estimates.
Dan added: “This is an indication of the great performance of the construction industry which contributes enormously to the GDP of the country at 18.9 percent in the second quarter of 2014 according to the same report.”
Roads infrastructure will open up latent areas influencing property value, attracting investors into the region, prompting appreciation of prices in adjacent areas.
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