New Kitisuru Gardens, houses that were being sold for Sh 15 Million in Kiambu are being auctioned.
It seems the bubble has started bursting and very soon, real estate developers will be counting losses.
See an advert on the houses being auctioned in Kiambu after things went south.
See Some Comments
An average nairobian pays btn 10 — 25k for rent. Now you develop a residential property, sell a unit at 15M. Expect someone to pay a mortgage instalment of around 45k… Ni ngumu sana… Developers should look into ability/income levels. It doesn’t require rocket science to define demand.
Selling property in such ridiculously high prices in a third world country even in western countries the prices are not that high how many can afford 20m 50m 100m houses honestly where does that money come from.
A house selling for ksh 20M without quality infrastructures – schools, shopping center, accessible roads or water supply is a joke.
There are many factors that come into play when a project fails, product, price, location, business strategy etc. It’s therefore very naive and ignorant to assume that this is indicative of the “bubble bursting”! There are $1m homes selling effortlessly in Kenya, how come the “bubble” hasn’t burst for that demographic?