Wondering when and where to buy land within the Nairobi’s Metropolitan?
Making a land investment decision can take quite some time. Vacant land is the ideal option as it is more affordable than developed land as there are neither repairs nor renovations to be made. However, the investment requires you to be patient as they may take time to make money. Consider the vacant lands in fast growing areas in terms of population and jobs increment. The land becomes desirable over time and gains value.
Can you imagine Nairobi 30 years ago or better yet 40 years ago? All I see is empty land all around, most of it belonging to the traders and the government.
Fast forward to 2020, picture Nairobi now. You aspire to be a Kenyan who owns a piece of the country’s capital in your name, put up that white picket fence and raise your beautiful family or put up a commercial space that will earn you a good chunk of rental income.
How much do you think an acre along Mombasa road costs? Let me be the eye opener here. An acre on Mombasa road will cost you Kes 120M. Your preference is inclined on the affluent Nairobi suburbs including Kileleshwa, Kilimani, Lavington, Riverside Drive, Westlands or Lower Kabete, an acre will cost you approximately from Kes 250M to Kes 300M in these areas. Oh no that’s too costly might I say? All the same, have you ever thought of how much that same parcel of land was priced at, say 30 or 40 years ago? History says an acre in the ‘90s and ‘80s was Kes 5M. This means there has been a capital appreciation of over 80% annually till date.
At Vaal Real Estate, we experience a lot of land shoppers hopping from one place to another looking for land to buy in Nairobi. So it’s 2020 and options are vast, whom are we kidding? Anyone with a smart phone and internet can take a picture and upload it on social media and get plenty of views. Most buyers are overwhelmed by the multiple options they have when it comes to land acquisition and sometimes one may overlook the core essence of the purchase.Backtrack to 1900 and give you the Kes 5M, ask you to buy land in Westlands (mind you there are not so many fancy skyscrapers and developments like Vaal Real Estate’s Elite Residence), would you have purchased that plot?
I have met a couple of buyers who shy away from buying land in areas that are not developed and settling for areas with residences already built up.
Take into consideration Thika and Juja, did you ever think there would be a bypass that lets you drive to the area in 1 hour? That seemed like a dream too good to be true.
As an investor myself, I usually advise my clientele to look for diamonds in the rough. Buy that land parcel that is within your budget; that location that has no tarmac yet; that looks like nothing but a bush-like parcel. The appreciation value in this location will be over 300% in the next 5 years and 1000% in 10 years.
Real estate is like a ripple effect, demand for land always moves onwards and outwards.
Consider the Syokimau, Athi River, Machakos, Mlolongo, Sabaki and Kitengela areas.
All these were locations that were only accessible by people with vehicles from Nairobi.
But since the rent has been skyrocketing in the Nairobi area, people created a ripple that has resonated all the way to Kitengela.
The new norm is people working in Westlands but living in Kitengela and are able to use the PSVs to commute.
This ripple is ongoing all around Nairobi and every major county in this country.
So if you ask me when the right time to buy is; it’s now! Start collecting on that capital appreciation before someone else comes in and re-sales to you in millions. Where is the right place to buy?? Look for that untapped gem; that diamond in the rough. What Vaal Real Estate is offering you at Kes 500k now, will fetch you Kes 5M in a few years’ time.
The best investment on earth is earth. All you need is the right advisor to help you with this process. I am willing to help you out.
For Vaal Real Estate,
Assistant Sales Manager