Real Estate

People always ask who is snapping up all this high end property while the Kenyan economy is in the doldrums. The answer is:- Kenyans working abroad. Diaspora remmitances last year crossed $2.61 billion, a 42% rise from 2017. That’s over two hundred and sixty billion shillings. So, the @Purple s, @Ka-Buda s and @Panyaste s of this world are largely responsible for the high end property boom. There are other buyers of course such as thieving politicians and foreigners. For most Kenyans in the diaspora, real estate is their investment of choice because of its passive nature and stability. They want investments that they can run when abroad. Even in the not-so-leafy suburbs, many landlords work abroad.

yaaaaaa they are buying. but they are also vacant. so how exactly are they getting ROI on their investments?

Divide that , with the number of Kenyans in the diaspora, then divide by 12 months, and you will realize that, a good % of this money is for family upkeep and other expenses.

I don’t think they do that math. Most want to buy property ONLY, regardless of the return. I am just trying to explain the demand in high end property in Kenya. Whether they are making smart decisions with their money or not, only time can tell.

How can I go abroad?

True, but even so, a good portion of this money still goes to property bearing in mind that most Kenyans working abroad don’t come from peasant families anyway. The number of Kenyans living abroad doesn’t matter if they can access loans wherever they are at say 5% and have an option to refinance. Talk to any salesperson in the high end property sector and they will tell you who is buying. Some even focus on marketing their property exclusively to diasporans for those Euros and Dollars

good point.

Correlation vs. Causation

hapo kuna correlation…lakini sio causation

:cool: usually people fly, on planes, but one can also go by road or sea :slight_smile:

I am sure siko peke yangu. My landlord works abroad. He also owns two more houses in the dusty estate. I don’t think there is any other business he can run effectively when abroad. That is enough causation.

The truth is that they are parking money there, because the economy is dead, and there is nowhere else they can preserve their capital. There is no business you can invest over 50 million in kenya today and sleep sober. Ile kitu muhimu sa ii ni Uhai. Nunua nyumba. After 20 years your kids will sell it and get capital for their ventures. Ukifanya biz sa ii na io pesa utachomeka. Economy imesimama.

Cc @teamtalk

Madollari mingi kwao

G.o.K ought to put in place, proper structures, whereby, this money coming from the diaspora can be channeled to other sectors of the economy.
Under Mwai waKibaki, there was alot of optimism in th NSE. This money can even fund infrastructure

Boss, most of the Kenyans abroad are not that well off to snap the high end properties locally. I’d rather buy a semi-detached hse in Birmingham than throw the money in an overpriced apartment in Lavington. Money remitted from abroad ni ya kulipa fees, medical for relatives and kusaidia parents and siblings in Kenya

Learning the dynamics of Economy

Most of the properties diasporans procure thru a collective fund that invest members contributions in real estate.
They via a registered organisation/company.
Then the other microscopic group invest as an individual.

what people fail to understand , is that Kenyans are also investing their resources abroad, this is after being conned by family and friends in .ke.

Many don’t think along your line. That’s the point.

Conmanship is what forces and confines them to real estate i.e buying directly from developers. A guy comes on a month or two holiday for the sole purpose of shopping for property, they buy and then leave. It is the only investment where they can limit conmanship from relatives etc by buying completed property from developers and avoiding all the hustles.

keep in mind most people in diaspora don’t have the luxury of travelling back and forth. trust what we are telling you, most money of the remittance goes to family upkeep and business starts ups, that go belly up in a very short time. kama unasema most matatus are bought from diaspora remittance, hiyo sawa.