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