Mortgage Finance provider HF Group will for the next two months offer a 30 per cent discount on 700 houses in different parts of Nairobi in a move aimed at improving the firm’s real estate sales in a fledgling Kenyan market.
According to the Group’s Chief Executive Officer Robert Kibaara in a report by the Business Daily; the campaign labeled ‘Shika Nyumba na HF’ will run from March 4 to May 31, 2019 and it will make property buying affordable for local customers.
“The Shika Nyumba promotion makes existing properties more affordable for local and diaspora buyers. It is an opportunity for cash buyers as well as those seeking to take a mortgage funded by HF,” Mr Kibaara is quoted as saying by the Business Daily.
The HF Group Chief Executive Officer similarly revealed that the 700 houses are part of 11 completed and non-completed projects that are independently owned by HF and other real estate developers funded by the mortgage firm.
In the Business Daily report, Mr. Kabaara consequently revealed that the deal will be exclusive for new customers only with home owners who have existing contracts from the eleven aforementioned projects not eligible for the promotion.
The completed properties up for sale include Komarock Heights Apartments, Kahawa Downs Apartments, Evergreen Valley maisonettes and apartments in Utawala, Koibatek Apartments, Sigona Heights Maisonettes, Woodley Springs Apartments and Warira Court apartments.
The yet to be completed projects include Richland Pointe apartments, Precious Gardens Phase II apartments and Clay City Phase IA apartments. All three pending projects are expected to be finalized by January 2020.
According to a report by VAAL Real Estate, Kenya’s residential market growth has been mimicking the political environment with the industry having registered an accelerating growth over the last decade with a decelerating growth in 2017 due to the national elections.
The same report also pointed out that according to the World Bank Group, the housing unavailability and unaffordability is attributed to the slowdown in economic activity to weak credit growth and rising global oil prices. The annual housing supply is estimated at 50,000 units, which is lower than the projected 200,000 units annually.
The VAAL report indicated that there is a growing demand for apartments with Westlands having the highest occupancy rate of 92 per cent attributed to its close proximity to major socio economic amenities and other business nodes.
“3-bedrooms apartments are the most popular typology driven mainly by the demand from mature families. This is followed by 2-bedrooms apartments which appeals more to young families. Studios and 1-bedroom apartments have been gaining popularity from single occupiers who are starting off in their careers and investment purchasers,” the VAAL Real Estate report reads in part.