Living abroad: This is why you should consider getting a mortgage in Kenya

In a move meant to help developers raise funds to build new housing units, the Kenya's KCB Bank plans to offer mortgage-backed securities Photo:Courtesy

Kenyans in the Diaspora plan to invest more than Sh6 billion in the country’s lucrative property market in the next one year.

The diaspora community interest comes at a time when the local property market is grappling with a huge supply gap.

Currently, the market is estimated to have a deficit of more than 400,000 housing units both in the urban and rural areas.

Kenyans abroad are urged to look for long term investments that yield good returns over time.  Housing market has been growing steadily over the years and prices have also been on an upward trend.

The most important thing for Kenyans abroad is to identify the right property and the right location to ensure good returns.

They should use trusted institutions like KCB to manage their investments and also be cautious when signing contracts they do not understand especially sale agreements that result in being charged extra fees.

They should also do research on various investments being offered to avoid getting into projects that result in loses. Using the expertise of the banks like KCB will greatly reduce the risk.

KCB is investing in diaspora products since there is a need for them to invest back home. Over the years, there has been growth in real estate especially the purchase of land and houses.

Kenyans abroad are being encouraged to invest in Kenya because they play a major role in the economy. The investments they make help create jobs and support various sectors of the economy.

 Diaspora remittances have overtaken foreign direct investments. Remittances now account for 4% of the GDP of Kenya.

The growth in demand has been steady over the years which has seen improvement by double digit.

Germany and United Kingdom have focussed on growing the European market and diversifying the business.

There has also been steady growth in remittances from this region and hence the great potential.