Kenya’s super rich rush for houses

Suburban house on a sunny day

Kenya’s super-rich are buying more luxury homes in the country, signalling bargain hunting as prices for trophy houses soften, according to The Wealth Report 2019 released last week.

About 18 per cent of Kenya’s high-net-worth individuals’ (HNWIs) – those with a net worth of $1 million(Sh100 million) excluding their primary residences – bought new homes in 2018, with only eight per cent purchasing houses abroad.

According to The Wealth Report’s Attitudes Survey, 22 per cent of Kenya’s wealthy plan to buy new homes in the country in 2019/2020.

First and second homes make up 45 per cent of total wealth for Kenya’s super-rich, with the HNWIs owning an average of 2.7 homes, according to the report. Their South African counterparts own an average of four homes each.

The HNWIs took the opportunity to snap up new homes during the year as luxury residential prices softened amid an oversupply in the high-end market segment, tighter liquidity and a general market correction, making it a buyers’ market.

Nairobi’s ranking slipped to 92 in the Knight Frank Prime International Residential Index (PIRI), from 75 the previous year, as prime residential prices fell by 4.5per cent in 2018.

South Africa’s Cape Town is ranked 28th following a 3.8 per cent price growth in 2018.

Despite the price drop last year, luxury property values in Nairobi have appreciated by 38 per cent since 2010, according to Knight Frank Kenya research.