Kenya’s Real Estate Transparency has improved, report says

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FILE PHOTO: Real Estate in Kenya. PHOTO/COURTESY: Mwakilishi.com

Kenya has been ranked fourth among Sub-Saharan countries leading in transparency of the real estate market, a global transparency index by South Africa based real estate firm JLL & Laselle has revealed.

The report attributed Kenya’s overall improvement to greater data availability, improved valuation standards and government digitization initiatives. The survey also mentions Kenya as the forerunner in the advancement of Transparency across the East African Region. In West Africa, Nigeria takes this position.

“Governance and transparency remain one of the biggest hurdles to economic development on the continent. Investors, both international and local, need to trust Africa before parting with their capital,” the report says.

“Success will flow from this. It is heartening to see that two of our region’s economic powerhouses, Kenya and Nigeria, are the top two regional improvers.”

However, Kenya is yet to attain full ‘transparency’ with only South Africa; which came in first among the Sub-Saharan nations under survey, attaining that standard.

South Africa gained its transparent status with its significant institutional investor base and listed sector helping it score among the top 20 global markets in the ‘Investment Performance Measurement’, ‘Corporate Governance’ and ‘Regulatory and Legal’ sub-indices.

The report further attests that transparency is rising across Sub-Saharan Africa but more needs to be done to bridge the gap between Sub-Saharan Africa and other regions.

“The Real estate industry in Sub-Saharan Africa is gradually making progress, with 10 out of 15 markets registering an improvement since 2016. However, the pace of change needs to accelerate to close the gap with other regions and meet rising expectations in an environment where investors, business and communities are demanding higher standards,” the report reads.

Only South Africa, Botswana and Mauritius came in higher than Kenya in the survey conducted across 15 Sub-Saharan African counties. The JLL Global Real Estate Transparency Index is based on a combination of quantitative market data and information gathered through a survey of the global business network of JLL and LaSalle Investment Management across 100 countries and 158 city markets.

 

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