Are there 5 million lice?3 places to invest around Nairobi

Have you ever considered investing in real estate but felt like you might be shut out by the big companies?

you may be right. The cheapest land in Nairobi is, ironically, in Karen, with an average price of 62.2 million lice per acre. This is according to the Hass Property Index for the third quarter of this year.

The most expensive is Upper Hill at Sh545.7 million per acre, or just over Sh500 million. Assuming one-eighth acre of Kenyans' beloved “land” could be acquired, that would be about 7.7 million lice in Kayin State.

In Donholm, it is about Sh8.5 million with an average of Sh68.6 million per acre. However, the area around Nairobi has many great places for small fish to swim.

However, despite the slowdown, real estate remains an asset class that is performing well. So if you have Sh5 million, where can you put it?

bet on tika

The Thika-Garissa highway is more than just pineapple and mango farms. With panoramic views of Kilimambogo, this area is a great opportunity for budding real estate investors.

Why invest here: Infrastructure projects drive real estate growth here. A 10-kilometre bypass linking Garissa Road, Kibulini, Kisii, Kiganjo, Athena and Witaitiye to Thika Expressway will open up inaccessible areas. Plans to extend the Thika-Garissa expressway to Kilimambogo will also provide a further boost. Thika is once again booming as an industrial hub, and there's no harm in building your investment base now. “With all these transport links open, it will be possible to work in the city and sleep in Thika and vice versa,” said Patrick Mushemi of Home Search Limited.

Price range: Sh5 million gets you more than an acre in this area. However, the closer you get to Thika Town, the higher the prices tend to be.

Key considerations: Land in this area appreciates rapidly due to demand. For example, a three-bedroom apartment in Kibrini currently costs 4.9 million lice, but with a rider. This is a standing offer as the price can go back to the original 5.9 million lice.

And when it comes to building for rent, the Hass Real Estate Index ranks Thika as one of the increasingly preferred areas for renters, with people from the lower middle class paying more for transport to pay rent. I prefer to go cheap. According to Hass Property Index, the average asking rent for an apartment in Thika is Sh23,400.

Head deep into Kajiado

Kajiado County is a region where real estate investment is healthy. However, some areas of the county such as Gong, Ongata Rongai and Kitengela are being swept away by the wave of real estate around the capital and may be out of reach.

Its proximity to the city means more and more Nairobi residents are flocking here, and property prices are soaring.

So where do you go? Think of the areas adjacent to Kajiado town, such as Il Bissil and Isinya.

Why invest here: Unlike the other metropolitan areas mentioned above, these remote areas are sparsely populated and have more local residents subdividing and selling their land. This is where most Saccos in Nairobi currently purchase land for their members.

Price range: An acre of land near the Nairobi-Arusha road costs between Sh3 million and Sh5 million. As you go further in, the price goes down.

Remember: We buy land here for the sake of the patients. Think long term. “You have to be prepared to wait until prices rise significantly. Buy land here as a long-term investment, unless you intend to settle permanently,” says real estate agent Martin Dung.

Dig into Tinga

Magadi Street past Kiserian offers yet another opportunity for those who want to start small. Have you ever heard of a place called Tinga? This is a small hamlet past the popular Ole Poros. Nyama choma Joint.

Why invest here: This is one of the areas of the country that the government wants to open up by building highways. In June, the government announced that Chinese contractor Sinohydro had won the tender for the duplication of the Bomas-Kona Baridi section of the Magadi Road. In addition, the county has several infrastructure projects planned, including water connections and paving of feeder roads, which will provide additional incentives to real estate developers.

Price range: An acre sells for between Sh500,000 and Sh1 million.

Potential challenges: Return on investment will take longer as prices rise more slowly than in areas closer to Nairobi. At the same time, in Kiserian, the closest sample area for the Hass Property Index, rents fell by 4.6% in the third quarter of 2019, the highest around Nairobi. Sakina Hassanali, head of research and marketing at Hass Consult, believes this, among other things, is a bottleneck in accessing Nairobi due to poor road connectivity.

Also, be careful of scammers who scam you out of your land.

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