Date Posted: 12/13/2012 1:19:56 AM
Posted By: moff J Membership Level: Silver Total Points: 485
The property market in Kenya is booming. Individuals, institutions, retirement benefit schemes, the government, and others are all scrambling to get a share of this pie. Nairobi, it is said that the housing demand far much outstrips supply. The rapidly expanding middle class is heaping even more pressure on the real estate prices. This is slowly creating a real estate bubble where the housing prices are getting pushed higher and higher.The evolution of gated estates has been a revolution in the country; Bahati Ridge, Kisaju Housing, Longonot gate, Greenspan, Thika Greens, Tatu City, name them…Hardly does an advert pass in the television stations, radio stations or newspaper without the mention of a gated estate that is open to the public. This is good for the economy at the moment since the GDP of the country is increasing. However one has to ask themselves one question; does the hype associated with these gated estates and the housing boom in general bring paradise as it promises or is there some hidden mischief?On one hand, the booming property business is increasing the living standards and providing employment to the people of Kenya who are involved in the construction of these estates. The entrepreneurs are the biggest beneficiaries as capital gains tax is not enforceable in Kenya. They are thus laughing all the way to the bank with their profits fully intact. It is also bridging the gap between housing demand and supply. Therefore, it is playing a key role in ensuring that Kenya achieves its economic blueprint; the Vision 2030. This is by providing decent housing to all its citizens, a goal that is also entrenched in the Millennium Development Goals.On the other hand, the boom has come at a huge expense. Prices have been forced to skyrocket. This is making it more difficult for the “common mwananchi” to acquire a decent housing. The gap between the haves and the have-nots is also increasing. The property boom is greatly benefiting a few enterprising individuals and institutions at the expense of the majority many who are being affected by the skyrocketing prices. The pressure on social amenities such as hospitals, schools, water and electricity is also being felt as these have not been able to keep up with the expansion being witnessed in the property sector.Thus, the housing revolution is good for the country and its people. Despite this, there needs to be adequate regulation to ensure that the housing bubble does not burst at the expense of the economy. The government should step in and put in place to protect the citizens from the skyrocketing prices and ensure that housing becomes affordable to all people.
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