Individually Kisumu City and Nakuru City have their own unique benefits and potential for real estate investments.
The former is the third largest city while the latter is the fourth largest city in Kenya. Both being cities, they have advantages of investing either in commercial, agricultural or residential properties.
Whereas every investor has a preference, there are various factors that influence where you should invest. Some of these factors include your personal investment goals, market conditions, income levels, personal preferences among others.
On the other hand, real estate investment is influenced by factors such as location, infrastructure, population growth, government factors, economic conditions and the general potential of an area. Today we will have at two cities, Nakuru and Kisumu.
To begin with, both cities enjoy a strategic location. Kisumu is the capital of Nyanza serving as a commercial, industrial and a transportation centre of Western Kenya. It enjoys robust road, air, train and ferry transport making it accessible from other East African Countries.
On the other hand, Nakuru is a stopover for travellers from Mombasa to Western Kenya. It borders seven counties; Kericho, Narok, Baringo, Laikipia, Bomet, Nyandarua and Kajiado. This makes it a center of key activities happening in other surrounding counties.
Population growth is another key factor that drives real estate investments. As per 2019 Census, Kisumu has an estimate of over 610,082 and Nakuru over 570,674 both the rural and urban populace. This has an influence in demand for both commercial and residential properties in the two cities. This means that regardless of the city you wish to invest in, you stand to gain as an investor.
Third is tourism, where in the recent years most Kenyans are embracing airbnbs as a form of accommodation when on holidays or staycation. Lake Nakuru is an acknowledged UNESCO World Heritage Site and is famous lake due to flamingos and Lake Nakuru National Park. Naivasha also is an ideal tourism location boosting the economy of the fourth city. On the other hand, Kisumu city boats of Lake Victoria, Africa’s largest lake, Kisumu Museum, Ndere Island National Park among others. All these boost each cities demand for hospitality facilities presenting unlimited opportunities for real estate investors.
Economic growth is another factor that drives real estate investments. To begin with, the UN-Habitat listed Nakuru City as one of the fastest-growing urban centres in East and Central Africa due to its strategic location. It is also the second richest county after Nairobi with a 6.1 percent share of the Gross Domestic Product (GDP) according to the Kenya Bureau of Statistics.
The newest city has been attracting investors from all over in terms of NGOs, industries and local companies. This continues to create employment opportunities for residents who in turn invest in real estate products. Kisumu is thriving with sugar and rice irrigation industries, whose contribution to the National economy is immense due to its natural resources and as the epicentre for business in East Africa. In both cities the presence of industries and businesses contributes to the demand for real estate.
To make an informed decision, it is advisable to conduct thorough market research, evaluate the specific investment opportunities available in each city and consider factors such as property prices, rental yields, demand-supply dynamics and government policies that may impact real estate investments. Consulting with local real estate experts or professionals can also provide valuable insights tailored to your investment objectives.
Last but not least is infrastructural development. Nakuru has witnessed significant infrastructural development in recent years. This includes the expansion of road networks, improvements in transportation systems and the establishment of social amenities.
These developments enhance connectivity within the city and with other major towns, making it more attractive for real estate investments. This is the same case with Kisumu which is also enjoying key infrastructural projects such as the Port, the upgrading of the airport to international status, tarmacking of Nyamasaria – Magadi- Manyatta Road, Kisumu-Ahero Interchange, Kisumu – Mamboleo road and Kisumu – Kisian Highway etc.
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In conclusion, in comparison to Nairobi, properties in Kisumu and in Nakuru are relatively more affordable. This affordability attracts investors looking for entry-level investment opportunities or those seeking higher returns on investment.
A real estate company such as Username Investment Ltd is offering ideal residential plots in Nakuru and Kisumu at affordable prices. As an investor looking for higher returns for investments or generate income from real estate investments, you can choose from either or both cities based on your personal preference.