Scramble for residences with a view of the wild

By Harold Ayodo

Construction in Nairobi is assuming a new dimension as investors scramble for property overlooking the Nairobi National Park.

Most of the land that has caught the eye of developers is situated off Mombasa Road — about ten kilometres from the Central Business District.

The Government’s plan to transform the area along the Nairobi-Mombasa highway into the Athi Basin Industrial Corridor (ABIC) is among the attractions. ABIC, adopted from the Chinese model for development is meant to transform Export Processing Zones (EPZs) into Special Economic Zones (SEZs).

With the Government improving infrastructure, the cost of land has increased more than ten fold in the recent past, as investors scramble for space to put up commercial and residential properties in the area that is barely four kilometres from the Jomo Kenyatta International Airport (JKIA).

Real estate agents describe the area around Mlolongo, Ruai, Utawala, Katani and Syokimau as the Eastern bypass, earmarked for government development. Starting from the Ruiru-Kiambu Road, it crosses the Nairobi Northern bypass and Ruiru railway line into Thika Road and Ruai. The 40km artery will cut from Ruai, cross Kangundo towards Mombasa Road through Embakasi Garrison and Airport North Road.

According to the Ministry of Roads, China Road and Bridge Corporation Companies was contracted to build the Sh8.5billion Northern, Southern and Eastern bypasses.

Booming food business

Among infrastructural developments to be complete in three years are construction of interchanges, flyovers, box culverts, standard pipe culverts and drainage works.

Apart from employing casual labourers, the locals, especially women have also benefited from booming food business.

Investors constructing residential houses in areas overlooking the Nairobi National Park say their objective is to attract more buyers in the competitive sub-sector.

Yamin Construction Company (Yamco) Director Mohamed Abdilkadir says 33 of their 83 pre-sale mansions have been sold.

"The residential real estate market is changing as homeowners consider other attractions other than proper infrastructure when buying homes," says Abdilkadir.

He says most of the buyers of housing units at Yamin Park View Estate are Kenyans in the diaspora and foreigners.

"People who love wildlife are the major clients as the units overlook the 100 square kilometres of the Nairobi National Park," he says.

"Some of our buyers are Kenyans who lived abroad but want to come back to settle before the end of the year following the global economic downturn," Abdilkadir says.

Recent figures from the Central Bank of Kenya showed 6.6 per cent (Sh49 billion) increase of cash remittances last year — a bulk of which was invested in real estate.

Construction boom

Mortgage Finance managing director Frank Ireri says their 80 per cent increase in pre-tax from Sh858 million to Sh1.08 billion last year, explains the investment in houses.

"More people are either buying or constructing homes as cost of rental houses are increasing at a high rate," Mr Ireri says.

"The ongoing construction of the dual carriageway along Mombasa Road promises to ease traffic, which is a nightmare to residents who work in the CBD," says Yamco partner Wally Mohammed.

Economists recently argued that the country loses nearly Sh100 million daily in traffic jams that have become a permanent feature on urban roads. According to Mohammed, they bought the 10-acre plot where construction is in progress last year when prices were friendlier but they have since skyrocketed.

Mwalimu Town Properties operations director Kenyan Macharia says the construction boom and cost of property have also skyrocketed along the Southern bypass.

"Buyers want land in Athi River, Kitengela, Kiserian and along the Ruiru-Kagundo Road where prices have tripled in the past three months," Macharia says.

Macharia says one eighth of an acre at Mlolongo near Mombasa Road has gone up from Sh300,000 last year to Sh1.2 million this month.

"It’s hard to get more than one acre piece of land in the area as most property businessmen have sub-divided their land. "The cheapest one can get for one eight of an acre off Mombasa Road is at Sh800,000…an acre at Athi River fetches Sh2.5 million," Macharia says.

He notes, however, that not every investor is putting up mansions after purchase. Others are sub-dividing the same and re-selling making huge profits.

"Parcels of land in areas where Thika Road joins Kangundo Road will before the end of the year be homes to the rich," Macharia predicts.

He adds that plots along the Eastern bypass were not lucrative until the Government recently announced its plans to improve social amenities.

attracting wildlife lovers

Abdilkadir says mansions at Yamin Park View Estate are currently going for Sh15 million, and this has much to do with the wild life nearby.

"We got clearance from local authorities including the National Management Environmental Authority to construct residential houses here," Abdilkadir says.

Experts in construction say the area would be a real estate hub before the end year, given the number of developers on the ground. Investors, however, say they prefer putting up mansions to offer alternatives to invasion of flats and apartments in the up market areas.

Highrise buildings are on the increase due to scarce land in areas like Lavington, Kilimani and Kileleshwa.

"Mansions reminiscent of those at Yamin Park View Estate require four months to complete following their Spanish and Coastal designs," says CoastPlan Architectural and Interior Design Services architect Mathew Kaingu.

Kaingu, however, says use of lots of concrete instead of traditional blocks for the walls reduces the time to two months.

unique designs

Most of the houses have terraces instead of traditional roofs due to the warmer temperature compared to areas nearer the CBD, according to Kaingu and the architectural designs of mansions have two large windows.

Beatrice Wanja says she is contemplating constructing a family home in the area and selling their current house in Kilimani.

"We are weighing options with my husband to see if we can make more from selling our place on Ngong Road and move to Mombasa Road," says Wanja.

Estate agents say the proximity to Athi River, Mlolongo shopping centres and the Marambet and Embakasi train stations is another advantage. "Resumption of the defunct passenger train to the CBD and completion of the dual carriage Mombasa Road under construction will ease traffic jams," says Wanja.

Mohammed says the free view of elephants, giraffes and ostriches at the Nairobi National Park, 300m from the mansions is the major attraction.

Besides security, ambience and infrastructure, several other factors attract investors, according to Mohammed.

"We have sunk a 200-metre borehole to cater for intermittent water shortages, installed solar panels in addition to the traditional attractions," Mohammed says.

Property lawyers are, however, warning that fraudsters could capitalise on the construction boom in the area to con unsuspecting investors.

Lawyer Lucas Kang’oli of King’oo Njagi and Company Advocates cautions that legal procedures to purchase property must be followed, even when the deal is too good.

"Booming property business attracts many people including bogus agents out to defraud unknowing prospective investors," Kang’oli says. The Kenya Private Developers Association recently raised the red flag that 80 per cent of developers are not registered.

Kang’oli says simple regulations like doing official searches at the district land registries and involving valuers to ascertain market value of the property are important.