Cytonn report maps most expensive estates
Business
By
Dominic Omondi
| Apr 26, 2016
According to a Cytonn report on mortgage and rent affordability in Nairobi metropolitan, the city’s most expensive houses are in Nyari, Karen, Runda, Muthaiga and Kitusuri.
Githurai was listed as the most affordable market, where homes can be purchased through mortgages by households with a median monthly income of between Sh25,000 and Sh50,000.
Households on this pay scale can also afford rent in Embakasi, Komarock and Kariobangi.
However, the report found those living in the upper middle income areas of Ridgeways, Riverside and Rosslyn tend to spend more than a third of their income on rent. The most unaffordable rental markets in Nairobi are Nyari and Rosslyn, where a household needs to be earning more than Sh1 million.
The report assumes a household would spend not more than 30 per cent of its income on rent and not more than 40 per cent on a mortgage.
READ MORE
Nairobi Innovation Week opens with call for stronger academia-industry ties
When is the best time to invest?
Why manufacturers want five-year tax break on SME loans
Miraa farmers sue Murkomen, KAA over Sh4,000 levy at JKIA
Court orders KPLC to pay firm Sh50 million for trespass
Co-shared workspace firms spread footprints
Cooperatives protest Lipton tea estates sale to Sri Lankan firm
Fears of maize seed crisis as floods hit Perkerra irrigation scheme
UK tea giant Lipton to sell 15pc stake to local farmers in deal
Why oil products' volume rises or drops during transportation
Kenya’s real estate market remains a rental rather than a mortgage market. This, the report says, is due to country’s high interest rates, which have dampened the uptake of mortgages.
Although the demand for residential houses has outstripped supply, a disproportionate number of Kenyans remain outside the mortgage bracket.
- Miraa farmers sue Murkomen, KAA over Sh4,000 levy at JKIA
- UK tea giant Lipton to sell 15pc stake to local farmers in deal
- Fears of maize seed crisis as floods hit Perkerra irrigation scheme
- Fuliza: Kenya eyes Sh160 billion loan from World Bank
- Treasury increases Hustler Fund as borrowers struggle to get loans