Kenyan property prices have fallen in the third quarter of 2024. Property developers are facing tough times following the fall in property prices. This is according to the latest report by the Kenya Bankers Association (KBA), whose property price index shows that property prices fell by 1.1% during the period and 14.28% year-on-year. The KBA head of research said the fall in property prices reflects a market shift and signals tough times for developers.
Banks have reduced lending rates and this could boost demand in the coming months. Loans to Kenyan property sector rise In the third quarter of 2024, loans to the property sector rose marginally by 2.36%, but loans given to the construction sector fell by 13.47%. According to KBA, some developers are struggling to get finance for new projects, which could lead to a decline in the supply of new housing.
“The construction sector contracted by 2.0% in the third quarter of 2024, indicating a difficult time for builders. However, cement consumption increased from 1.96 million tonnes in the second quarter to 2.20 million tonnes in the third quarter, indicating continued construction activity likely driven by government-supported housing projects and infrastructure development,” the report said.
A Kenyan real estate expert shed light on the often overlooked pitfalls of buying developed plots of land in residential estates, stressing the importance of thorough screening before making a purchase. The real estate expert warned Kenyans that sellers often misrepresent electricity and water connections. He noted that while power lines are usually visible during site visits, the actual power capacity is often insufficient to meet expected consumption needs once plots are fully occupied.
@breakingbjenya news
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