This scenario in residential property is creating stagnation in rental incomes and snapping up the opportunities created by mortgage financiers.

As a result, there has been an increase in property purchase across the country especially in Nairobi.

A recent study by Hass Consult, a real estate firm, shows the housing industry in the city is witnessing an improvement in buying activities with spots of competition for properties.

“We are witnessing a change from cash purchase of property to mortgage financing and this is on the rise among the middle class,” says Ms Jenny Luesby, a lead consultant of the Hass Property Index.

Financing

Previously, property ownership was a revered venture associated mostly with upper income earners. The mostly wealthy citizens preferred to carry out most of their transactions either in cash from savings or bank loans.

However, the situation is seemingly changing with a number of commercial banks offering mortgage financing, and providing incentives to attract more first time home owners. Read More

Housing Finance is planning a property fund, which it expects will be a key driver of its business in the coming years.

The fund, according to the managing director Mr Frank Ireri will be structured in away that it will bring all key players in the housing industry to help them meet supply challenges.

“We have now made supply a key driver in our strategy and the property fund fits well within it,” Mr Ireri told the Nation in Nairobi on Wednesday.

The housing market in Kenya has over the years faced a huge supply challenge for both government and private sector players.

With availability of only about 35,000 housing units in urban areas, the deficit remains huge from a growing demand of 150, 000 units every year.

Cost of land

Other main challenges for the sector especially in urban areas have been the cost of land and adequate infrastructure that will encourage development.

They are such impediments that the fund would be seeking to go round in increasing industry supply of units.

Hugely affected by this is the provision of low cost housing to an increasing lower and middle income classes in the country. Read more