Kisumu real estate properties shifts away from the city

The lake side city’s construction and infrastructure continues to develop at a very high rate that triggered Kisumu real estate ventures are exceedingly moving far apart from the CBD. This has been made possible by the private developers and investors who have been persistent in launching classy establishment within the city having a specific mind of making huge returns.

Whole of Kisumu County is intended for the thought of a 24-hour working environment across the city, this move will help the entire lakeside city enjoy a robust economical state for the county hence business stakeholders, investors and even private developers will reap good returns out of this.

The emerging problem is infact that there is a very small amount space for the city’s expansion which has been left by the old architectural plans, this is clearly seen where the high-end residents are actually located exactly were the city would have been expanded.

In particular, am referring to estates in Milimani estate, Grace Ogot estate, Tom Mboya estate, Argwings estate, railways estate in town etc.

The head of city planning in the Kisumu County points out that the Kisumu town plan was adopted in 1974 which puts aside places like Milimani and Tom Mboya as the only town suburbs. Both of these have already been overtaken due to the fact the town was growing and expanding to become a city.

“These land stakeholders have since been experiencing a looming chance, as the city planners, we’ve been running several notices in the news to alert the residents of any changes just before executing them” said the top of city planner.

“There is no way that we could pass Milimani, Tom Mboya, Railways and other estates within the city’s CBD and after that progress with expansion process. If there is a growth, it will be in a state that is conventional with the modern trend.”

The top of city planners stated that they have a strategic master plan to be implemented later in the year. The strategic master plan will restore sanity within the property development sector in Kisumu County.

In the mean time, private developers, investors and home owners have moved in to reap bulky returns originating from the move to the city’s outskirts expansion.

Among the many stakeholders in the industry villa care ltd, which enter the western Kenya market in 2010 with Translake estate, we’re among the first to invest in the city’s expansion to build residential houses far away from the city. Translake estate, a gated estate has both modern maisonettes and apartments with social amenities together with other luxurious features.

These expansions together with the road constructions within and close to the city has skyrocketed the land prices conspicuously. “This is an extremely good opportunity for Kisumu real estate industry to prove itself within the precincts” Points out Mr. Evans Otieno, a Marketing Executive for West Kenya Real Estate Ltd.

Projects in Riat hills, Mamboleo, Kibos, Lolwe, and Polyview have attracted many investors who may have transformed the scenic hill into new wealthy suburbs especially for Riat and Mamboleo estates.

There are actually plans through the County Government of Kisumu to revive the lake transport sector, and also the Kisian-Nyamasaria bypass at Kondele market will boost many businesses in the whole region tremendously and not only Kisumu real estate sector but also other sector as well.

These developments have pushed up the land prices within the region as more investors are trooping-in to reap from the massive boom. Currently half an acre in both Riat and Kisian close to the airport cost not less than Kshs.4 million, despite of this the developers are scrambling for these properties because they really know what they’ll get in return at the back of their minds.

However, the stakeholders within the Kisumu real estate industry have protested onto the County Government and National Environmental Management Authority for adjusting the land rates by 100 per cent.

This county finance bill may have detrimental effects toward the construction affairs in Kisumu County, since N.E.M.A has also increased its approval fees. Different from this, “There are cases where con men pose as land owner to swindle investors and land developer hence giving them fake title deeds; this act has derailed the pace of development within the county.” says Otieno.

Land prices shoots up as focus return to Kisumu real estate

Kisumu real estate

The new wave of investor is currently concentrating on Kisumu real estate in the whole Kisumu County already has jolted land rates in the region. After a decade or perhaps even decades during dormancy, Kisumu land possessor are now having a view of unlocking capital gains in the region.

The need is conspicuously identified where local residents as well as worldwide developers who have been noticed returning gradually to Kisumu to invest in the overflowing lake side vicinity.

 The high prices of property in Kisumu have obtained a considerable boost from the continuously infrastructural upgrade; Kondele bypass, Kisumu- Nairobi road, modern construction of latest Kisumu international airport etcetera. Definitely the Kisumu airport expansion is among the projects which generally have instilled substantial excitement into the city economic activities.

Kisumu real estate firms are now having several investors streaming from abroad pushing at this time there focus on Kisumu real estate investments, all of this have been evidently noticed where the competition to obtain prime land within and around Kisumu CBD has subsequently seen a rally, attracting previously incredibly asking prices.

“Kisumu real estate has just begun to reap the best returns, no one has ever purchased ¼ acre of land at one million shilling within the region prior to now, however we’re having circumstances where lots of people are ready to pay as much as 30 million for an acre of land in Milimani and Riat areas so long as the plot of land is secure and conveniently positioned,” Claims an agent in Kisumu real estate.

Considering that there is a high demand for more commercial, hotel accommodation, holiday facilities, the financiers are getting hold of more land to reap out of this tantalizing opportunity. Most of the estates where property valuations are observed to have more than tripled comprise of Milimani, Mountain View estates and Poly view which are slowly turning commercial, as well as land in the expansive Kanyakwar area. In the up-market Riat Hills estate, which often overlooks the airport directly, half an acre now goes for Sh4 million and above.

Without doubt the high values being realized at present are also justified by the fact that Kisumu’s periphery and areas adjacent to the CBD have remained undeveloped over the years, according to West Kenya Real Estate Agency. “If you look at towns like Nairobi, those who have property in far-off places as Rongai and mlolongo are undoubtedly still viewed as residents of Nairobi, nevertheless for Kisumu the issue is only when you're few metres from the CBD,” said Otieno.

He also attributed to the new wave of demand will not prevent  people who had previously owned properties  in other areas of the county even though they went through nasty experiences during the 2007/08 ballot violence, are still willing to purchase and own at least a property in the region.