Causes of Land price rise over the past 16 years
- High Demand due to rise in middle class-Kenya's population has grown from 31 Million to 47.1Million in a period of 16 years according to UN estimates. This rise in population has contributed to the high demand for settlement pushing the land prices up.
- Infrastructure Development/ Electricity-Massive infrastructure has led to the opening up of some areas that were previously inaccessible hence land prices growing rapidly.
- Speculations / large scale projects- Speculations that the value will accelerate at the same rate like that witnessed in major towns in the past years and the pretext of large scale projects has seen the land prices go up.
- High Returns- The huge returns from the property market have encouraged the flow of billions of shillings into real estate, pushing land prices to record levels. The returns in 2015 was quoted at 29% as opposed to socks which was 14%.
- Devolution-The introduction of the devolved system of government has created jobs in the forty seven counties which has seen the population rise hence increase in land prices.
- Investment Awareness- Kenyans are fully enlightened on investing in real estate (land) which has seen land prices increase over the past years.
"Every delayed investment decision is real money missed"
George Wachiuri, Optiven Group CEO, Chair and Trustee Optiven Foundation, Author, Donor, Entrepreneur, Philanthropist, Church Elder and family man.