House and land prices in Kenya are anticipated to drop by 10 percent as a result of the Covid-19 pandemic in the short-term, according to MySpace Properties. MySpace Properties is a real estate and property firm headquartered in Mombasa.
It is reported that the country’s real estate sector has recorded slow growth in the first quarter of 2020 on the back of the pandemic. Another real estate firm as part of Cytonn Investment in its report said, “The spread of the Coronavirus took its toll on key sectors including the tourism sector, which saw hotels suspending operations and this effect is expected to trickle down to the overall real estate, particularly commercial real estate amidst the current global economic crisis.”
Also, demand for commercial space is expected to drop as companies and individuals are currently using the working from home plan. This is not to say that there is low demand in Kenya’s real estate but the effects are quite prominent at this time. In fact, the Kenya National Bureau of Statistics in an Economic Survey 2020 report said, “Real estate and other services are expected to be suppressed due to slowdown in economic activities and declining disposable incomes.”
Interestingly, demand for apartments in Kenya continues despite the pandemic as it is driven by the middle-class section of the society. It is reported that Langata, Athi River, Kilimani, and Ruaka have recorded the highest returns to investors. This can be attributed to the young and working population in Nairobi, a local media reported.