Kenya's property market hit milestones despite economic downturn
SEE ALSO: Birds of paradiseThe report indicated that Grade-A warehouses were largely being sought after by property investors who are setting bases in Kenya. This year the 5,000-acre Tatu City property, 400-acre Tilisi Logistics Park and the 200-acre Infinity Industrial Park remaine the largest beneficiaries of the emerging trend where logistics investor companies were taking up Grade-A space or Just-In-Time (JIT) facilities located in less congested and accessible areas away from Nairobi’s Industrial Area. Knight Frank also noted that in the year, the newly created by-passes around Nairobi had enabled a freeing up of transport routes and the intersections had turned the areas into hotspots for logistics parks where Tilisi, Tatu Industrial & Logistics Park, Northlands Commercial Park, Infinity Industrial Park and Nairobi Gateway Logistics Park had pitched tent. “Occupiers are willing to pay about Sh600 per square metre per month in Nairobi for the same quality of space they would find in South Africa or Eastern Europe,” Ben Woodhams, Managing Director Knight Frank Kenya said of the trend, adding: “However, local developers are struggling to provide such quality for purpose-built properties at less than Sh900 per square metre per month due to existing building practices and lack of economies of scale.” New land regulations
SEE ALSO: Pantone Colour of the Year for 2020In November this year, Lands Cabinet Secretary Jacob Kaimenyi gazetted the new land administration regulations as envisaged in the Constitution passed in 2010. The notice on the Land Registration (Registration Units) Order 2017 and the Legal Land Registration (General Regulations) 2017, among others, was in the special supplement of the official gazette that came out on November 24. The rules are expected to be tabled in Parliament for approval and enactment. It is this approval that will help comply with a 2016 court order that directed Prof Kaimenyi to comply with the directive, that, Ardhi House enacts the new regulations, or else all land transactions conducted in the absence of the rules since the NLC assumed office in 2013 would become null and void. Digitising of construction industry The National Construction Authority, which is the overseer in the industry, introduced new digital milestones that allowed the registration of construction projects to go online.
SEE ALSO: How to switch up a boring houseAccording to NCA’s chief executive officer Arch Daniel Manduku, the authority has registered 20,000 construction firms and 123 foreign contractors. “Online project registration and the use of the GIS for on-site inspections have boosted our projects supervision and registration of project in the year 2017 compared to the previous years,” Manduku says. BMI Research, A Fitch Group Company, in October projected the industry is set to close the year with a growth of 8.7 per cent. A growth which will remain steady up to 2026 with an annual growth of 6.2 percent. Landmark structures In February, the retail sector welcomed the Two Rivers Mall, the largest shopping complex in Kenya. Two Rivers, which is owned by NSE-listed investment company Centum, has already attracted more than 150 international and local brands into its space. Also, in the commercial and residential and office markets, landmark buildings came up or were launched. Among these is the Sh20 billion Pinnacle Towers. This iconic tower in the capital will include a 45-floor Hilton hotel. At 900 feet, the building will have the highest viewing deck in Africa. Other remarkable buildings include the UAP Park Towers which is 143 metres tall with 33 levels and the 38-storey Britam Towers in Upper Hill. Then, there is FCB Tower in Kilimani, KCB Plaza and the 45-storey Jabavu Towers in Upper Hill. Cytonn Real Estate also in the year, launched Cytonn Towers, Sh20 billion iconic mixed-use development project.
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