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Real estate developers target investors in line with affordable housing plan

The government’s plan of delivering affordable houses to Kenyans has triggered the real estate industry which has been forced to buy into the idea.

As investment in real estate continues to grow in the country, the sector has been considered as the most profitable venture that can guarantee long-term returns, and the rapid urbanization and high demand for houses continue to push more local developers into the business.

The real estate firms are now targeting long-term investors looking to cash on the huge deficit.

In an address to the media, Brownstone Capital said that the move has been propagated by the latest data which indicates that the country’s production of housing units is currently at less than 50,000 units annually, which is below the target.

The real estate firm stated that it is putting up a Sh600 million 348-unit housing project at Muthiga along Waiyaki Way targeting long-term investors.

“We are giving investors a platform to diversify their investment portfolios especially those investing in the stock market and government bonds,” Peter Ng’ang’a Kibugi, who is the firm’s sales associate said.

Also, the company stated that it has so far developed more than 500 units with investor returns of more than 25 percent.

“Real estate income allows our investors to build more investment over time by reinvesting their real income in bonds, money makes and buying more developments.”

Recently, Kenyan real estate firm GulfCap Real Estate (GCRE) bagged the most promising affordable housing developer in Africa.

The company bagged the award in the gala dinner at the 39 annual conference organized by the African Union for Housing Finance (AUHF) in Windhoek, Namibia.

Under President Ruto’s affordable housing plan, Kenyans will be paying between Sh840,000 and Sh5.76 million for low-cost homes.

While launching the Buxton Point housing project in Mombasa, the President said that lauded the real estate sector for leading in providing affordable modern homes to Kenyans.

GulfCap Real Estate chairman and EAL MP Suleiman Shahbal who accompanied the President said that he was delighted to take part in the affordable housing program.

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