Coast real estate boom defies Covid threats

The Coast region is witnessing a new round of property boom as real estate firms flock to the Coast amid rising demand for low-cost housing.

The boom has been occasioned by a surging investment appetite by the middle-class nursing homeownership dreams despite the Covid 19 pandemic.

According to Cyton investment, Mombasa being the second largest city after Nairobi, attracts a significant portion of rural to urban migrants, with the rising population translating into high demand for residential units, commercial offices, retail centers and land to serve the needs of the residents.

For Kenyans whose net monthly income is below Sh50,000, chances of owning a home are slim, and now, several companies are rushing to offer competitive deals on budget plots.

In the recent past, however, some real estate firms have ended up fake, and unlike their colourful entry into the market, disappeared quietly, sinking investors’ dreams and hard-earned cash.

Oligro Group Limited, the latest entrant eyeing a piece of the real estate market in Coast’ starting with Mariakani, now says their strategy is to restore investor confidence, with a focus on investors at the bottom of the income pyramid.

Mariakani is a satellite town near Mombasa. It began as a stopover town for travellers and truck drivers but has since grown, attracting investors in transport, construction and banking.

Head of Business Development at Oligro, Mwiti N Mwiti, says they are targeting Kenyans seeking to buy affordable plots for the immediate or future development of a family home or rental units such as bedsitters.

“It is possible for ordinary Kenyans, earning ordinary income to own a home if developers reduce their appetite for huge profits,” Mwiti said. “As of 2017, the production of housing units was less than 50,000 units annually, well below the demand. It has not improved much.”

According to county records, Mombasa has an estimated total housing deficit of 380,000 units.

He added: “Whether they end up building dream homes or re-sell plots at a good profit, the bottom line is to ensure clients enjoy the fruit of their investment.”

Their current project is Bomma Estate Phase Three, is a gated community estate located in Mariakani. It was launched in February this year and comprises 50x100 plots with prices ranging from Sh385,000.

Oligro has diversified into the construction of budget three-bedroom bungalows to meet the rising need by their clients for ready-made budget-friendly houses. The show house is scheduled to be completed in June 2021 and will retail from Sh3.950m.

The fortunes of Mariakani changed from 2017 after the completion of tarmacking of the Mariakani-Kaloleni-Mavueni bypass which serves as a link to Kilifi and onwards to Malindi and Watamu. The town is linked to the SGR through the Mariakani terminus.

More individuals and families are now preferring buying and building in Mariakani due to the affordability of plots and easy accessibility of construction materials, especially quarry stones from Kilifi.

However, not all those purchasing plots in Mariakani have intentions of developing homes or rental units. Some have taken advantage of the low prices of the plots to buy against speculation, planning to resell later at a profit.