Now that we know that investing in real estate in Kenya is a great idea, and we know what to look out for so as not to make mistakes. We can look at some ways one can invest in property in Kenya.
- Buying land
The most popular real estate investment avenue in Kenya is Land. Investing in Land in Kenya is appealing simply because once you buy, you really don’t have to do much; most people buy and wait then resell later at a profit. As the real estate mantra goes, don’t wait to buy, buy and wait.
There are a several ways to add value to this sort of investment, such as fencing it, connecting power and water lines and building an access road. As with many real estate investments, location is always King.
Of course the option of developing the land is available, and depending on what one chooses to build and the location of the property, different levels of revenue can be obtained.
- Building residential property in Kenya
Residential property is another property investment avenue in Kenya. Actually if one has the finances, one can buy land, build residential units and choose to sell or let. This strategy offers higher returns but requires a lot of expertise and is capital intensive.
- Commercial Real estate
Finally we have the option of investing in commercial real estate. Not known to many people, commercial real estate offers more reliable income than residential property investment in Kenya. This is because the lease agreements with the tenants is usually for periods not less than five years and with a rent increment clause that ensures the owner gets incremental income from the property over the lease period. This is also capital intensive and requires a degree of expertise.