Multi-billion shilling real-estate projects launched amid sector woes

Dumptruck in action on a construction site Developers continue to defy market sentiments with new and bigger projects breaking ground almost daily. Just last week, two leading developers broke ground for hundreds of residential units while a leading global hotel chain sought to spread its footprint in the local hospitality scene. The first was Centum Real Estate that broke ground for its Riverbank Apartments, a project that will consist of 160-units within the Two Rivers development complex near the country’s Blue Zone. Construction of the first phase of the project comprising of 80 units commenced in the last week of July this year and will take 24 months to complete. The multi-unit residential project comprising of a mix of one, two and three-bedroom units seek to take advantage of the buzz created by Two Rivers, the region’s largest mall. In the same week, Chinese developer Erdemann Properties launched Phase Three of the Greatwall Gardens in Athi River. The housing project is set to have 288 units selling at an off-plan price of Sh2.9 million. The project is touted as a flagship Affordable Housing project in Athi River. On Saturday, Mi Vida, a new residential project by Actis, a leading growth markets investor and Shapoorji Pallonji Real Estate from India held an open house where prospective investors sampled the amenities to their new housing project next to Garden City. Under the Sh12 billion joint venture, the two partners will deliver over 2,000 residential units with construction of the first segment set to commence in the third quarter of this year. In the hospitality sector, Accor Hotels also announced the entry of the first M Gallery Hotel Chain Collection in Gigiri, Nairobi, to be opened by the first quarter of 2021. The hotel will be developed in partnership with Jit Group, a local investment firm and will grow the group’s footprint in Nairobi to five properties that include Fairmont the Norfolk in, Ibis Styles Hotel and Mövenpick Residences and Hotel. Shrinking bottomlines While the real estate sector in Kenya continues to expand, it is not lost on observers that many developers have been left holding the short end of the stick. Construction costs continue to skyrocket and bottom lines keep on shrinking. The sector has racked up the highest stack of non-performing loans as financial institutions continue to give the sector a wide berth. According to the Central Bank of Kenya’s […]

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