Property developers have shifted to top gear in construction of residential houses despite perceptions of uncertainty ahead of the General Elections.
At the beginning of the year, economists predicted a slowing down of real estate because of the upcoming polls and runaway mortgage interest rates, saying many buyers would adopt a wait and see attitude before investing.
However, judging from the many constructions in residential estates in Nairobi and other towns, it is obvious that developers and prospective homebuyers have turned a deaf ear to predictions.
Developers say an election year is the best time to buy and sell property and the prospect of devolution to the counties starting next year may also be the reason for the continued vibrancy in the market.
Interest rates
Villa Care Chief Executive Officer Daniel Ojijo brushes off perceptions of uncertainty, saying demand increased even after the post election violence in 2008. Prof Walter Jaoko, Managing Director Jadali Properties
"Buyers are better off buying property today than tomorrow because prices will continue to rise," says Ojijo.
According to Ojijo, the asking prices of homes may rise higher after the elections.
"Buyers often have personal influences in making choices and will purchase at the end of the day ¡ª if they want," he says.
Ojijo says demand for their rental houses and those for sale increased in 2007 and 2008 despite increased prices of land in most areas in the capital.
