A majority of wealthy individuals are now buying luxury apartments to lease them off as rentals in a new market trend.
Centum Real Estate says this trend has been fueled by Kenyans living abroad and the expatriates.
This supporting the Kenya’s edition of Wealth Report 2024 by Knight Frank findings, that showed that appetite for residential real estate as investment vehicles among Kenya’s rich population is on the rise compared to preference for commercial property.
Speaking during the handed over luxury apartments to buyers of phase two of the Loft residences located at the Two Rivers commercial and residential complex, Centum Real Estate Managing Director Kenneth Mbae said that four out of every five of the units have been listed for rent.
The trend indicates a notable upswing in perception among affluent residents, suggesting an overall trend where Kenyans display increased interest and trust in their home country.
“We are proud to have actualized our sales pitch and met the aspirations of our investors. The rapidly growing waiting list of prospective tenants at our Two Rivers model development avails a basket load of wealth creation opportunities to investors,” said Mbae.
The Centum Re boss said buyers of the houses are spread across six continents including Africa, Asia, Europe, Australia, North America & South America.
About 90 percent of the buyers are investors mostly business people, Kenyans living in the diaspora and expatriates.
He further noted that a fifth of the buyers (21 percent) are mortgage borrowers, while 79 percent are milestone-based cash payers.
Knight Frank Wealth report shows that nine out of every 10-dollar millionaires in Kenya are renting out their second homes.
Mbae added that investors snapped up phase two of the Loft Residences way before their completion.
He noted that the biggest selling point for corporates and diplomatic missions is the location, close to the diplomatic blue zone, and the multiple connectivity to a number of locations including the airport through the extended road network.
“The units have attracted high rental income and capital appreciation. We have enjoyed extensive support and referrals from our existing customers, the demonstrable track record of Centum RE to deliver high quality homes has been our biggest asset,” said Mbae.