In this article, we will talk about how real estate works in Kenya. There are some important things that may be new to you for this country. We will go over various types of property including houses, apartments, land, commercial spaces, and more.

We will also discuss what kind of properties are most profitable in which market sector. This includes buying or selling depending on your goals. Some markets reward investing while others do not. It all depends on if the investor is looking to make a quick profit or build long term wealth.

There are many ways to invest in real estate in Kenya but there is one factor that can really determine the success of your investment – location!

Finding a good area is very crucial when investing. You want to make sure that your money does well and stays invested for a while before earning a big return. People’s emotions run high in some areas of the city, so choose wisely where you put your money.

Another thing to consider is whether it makes sense to buy rental or owned property. Renting out an apartment or house can easily net you extra income every month. On the other hand, owning a house comes with additional costs like taxes, repairs, and renovations.

Types of real estate

how real estate works in kenya

As we have discussed, not every piece of property is considered a home or part of the housing market. Some buildings are just business ventures for someone to run- they are not intended to house people.

These types of properties are referred to as investment properties. They can be rented out or sold so that your investor gains income from it, which makes this person rich.

Another type of real estate that isn’t seen too frequently is land. Land is simply an area of nonmoving scenery, like looking at the ocean or countryside. People who own lots of land use it for many things; some develop it, some just enjoy being surrounded by nature.

There you have it! Now you know all about different kinds of real estate in Africa. If you would like to invest in real estate or need help deciding what kind of property is right for you, let us help you! We hope you enjoyed reading our article.

The Kenyan government and real estate

how real estate works in kenya

As mentioned before, there are two main types of property in Kenya- leaseholds and freeholds. A lot of properties are either leasehold or freeholder. This is typically because the owner does not want to invest in a cost-effective way to own their home.

A leaseholder owns an apartment that he/she rents from another person (the landlord). The tenant pays a monthly rent as well as other fees such as utilities which the landlord covers. This can be expensive if you’re not paying attention!

As landlords, we must also consider how much we will get back in revenue. If the value of your house goes up, then your income goes up too. However, if the price drops, so do your revenues! This is why it is important to sell at a fair market price – no one should make more money than what the property is worth.

Buying a house

how real estate works in kenya

As with any large purchase, figuring out how to buy a home can be tricky and time consuming. It’s best to do your research as early as possible so that you are not rushing into anything.

There are several ways to go about buying a property in Kenya. The most common is through private sellers who will agree to sell their home to you. This is usually done via email or chat apps where they discuss terms of the sale.

You would then meet up at the seller’s property either face-to-face or over the phone and close the deal.

Another option is to find a property being sold by agents. These agents have an allotted amount of money for marketing the house which helps it get more attention and therefore sold quicker. They take a percentage off the price as commission however, this depends on the agent you choose!

Some people may also opt to list their own property online instead of using an agency. Just make sure you know what regulations exist in Kenyan law around advertising properties.

How to finance a house

how real estate works in kenya

Finding the right source of financing is an important part of buying a home. There are many ways to do this, and no one way is better than the other unless you have zero money! Luckily, real estate comes with lots of resources that can help you out.

Most people agree that it’s best to put as little cash down as possible when buying a house. This is because most lenders require at least a 20% down payment (the cost of the property minus all loans). By putting less money into the deal, you give yourself more room for error and may be able to get a lower monthly mortgage.

A lot of homeowners use their savings or take out a small line of credit instead of both in order to avoid having too much debt. These strategies work well if you don’t need a huge amount of money to pay each month!

There are also government-backed programs such as the Federal Housing Administration (FHA) and United States Department of Agriculture (USDA) mortgages which make housing more accessible to individuals who might not otherwise be able to qualify for a loan.

These agencies will approve borrowers with only a 10% down payment and no formal education beyond high school. However, there are conditions like annual income requirements and proof of residence in order to qualify.

Registration of a property

how real estate works in kenya

After you have found your dream home, the next step is to register it. This means documenting who owns what part of the house and ensuring that no one else does!

In some countries, such as Canada or Australia, this process is very easy – you just need proof of identity and proof of residence and then you are done!

But this is not always the case in developing nations like Africa. You will need to know who owns what piece of the house before you can officially invite them into the family.

Getting utilities connected

It’s totally normal to run into issues with your electricity or water supply, especially at the beginning. Luckily for you, there are lots of resources available to help fix this!

There are many organisations that can help connect people to power, including charities, government agencies and private companies. They all have different standards so it’s worth looking around to see which one fits you best.

Charities usually don’t charge too much money for services but they may ask you to contribute towards fixing someone else’s connection later on. Asking around is our tip number three for getting connected.

Private companies often offer discounts to customers who are able to prove they are trying to improve their home comfort-ability. You should always check if these discount codes exist before signing up as a customer though!

Government agencies sometimes give away free connections depending on how poor you describe yourself as being. Ask your local councilor about such opportunities when starting house hunting.

Insulation and home improvements

how real estate works in kenya

One of the best ways to keep your house warm and safe is by insulating it properly. This can be done both inside and out!

Many people do not realize that you can easily find great insulation in stores or through online shopping sites. There are many brands that offer excellent products that work, cost effectively and truly help preserve your homes warmth.

You should always look into these products before buying them though as some may not be very good for your home or health. As with any purchase, do your research and make sure this will work for you!

Another way to improve the efficiency of your home is improving your window and door seals. These apply extra pressure to prevent heat from escaping your home.

Maintenance of the house

how real estate works in kenya

The next most important thing to learn about buying or renting a home in Africa is maintenance. This includes keeping up with regular property inspections, monthly bills, yearly taxes, and repairs.

It also means making sure that you are aware of your rights as a homeowner before you even look at houses. In many countries across Europe and North America, people organize open homes for potential homeowners, which is an excellent way to check out the area and get familiar with the surrounding properties.

There are also organizations like that offer resources and tools for real estate agents so that they do not have to go through the process of educating themselves on all aspects of the market on their own.


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