Richland Properties Knocks Into The Big 4 Agenda’s Affordable Housing

International real estate company Richland Properties Limited has entered into the Kenyan housing market.

The international based company though its funding gets to pay up the property’s rent worth upfront to the landlords and they take up the risk and hustle that comes with rent collection.

Depending on the negotiations, they pay up between three months to one year upfront rent to the owner’s building.

The company targets Mt Kenya region and Kisumu which have been termed as the best performing housing markets in Kenya.

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According to a previous report by Cyton Investment, Mt. Kenya and Kisumu were the best performing regions, with average rental yields of 9.9% and 9.7%, respectively. This is attributable to an increase in occupancy rates of on average 4.5% and 11.6% points y/y for Mt. Kenya and Kisumu regions, respectively

Nakuru had the lowest rental yield of on average 6.9%, which is due to the low rental rates charged within that market of on average Ksh83.3 per SQFT, 38.0% lower than the market average of Ksh134.3 per SQFT as a result of competition from MUDs that are older in the market.

Nairobi is the only market that registered a decline in rental yields of 0.2%, to 9.4% from 9.6% due to an oversupply of mall space, currently at 2.0 million SQFT, hence price wars by developers in a bid to attract retailers and increase occupancy rates.