Business
Beware, the property bubble is about to burst
Kenya is already experiencing a market bubble in the property market — where demand exceeds supply and suppliers become greedy. Photo/FREDRICK ONYANGO
Posted Monday, August 16 2010 at 00:00
Though rehabilitating, is not a big phenomenon, developing, subdividing and change of use are.
For example, an apartment complex owner could subdivide and change use to single condominiums to rake in bigger profits.
Developers also change land use from farmland to residential, subdivide it into smaller plots, and sell them at inflated prices.
These are the dominos that are being played and the market is becoming dangerously shaky.
Based on these factors, my estimate is that we are in phase two of the sellers’ market. If I were investing in Kenya at the moment, I would diversify. Again, buyers beware!
Mishael Ondieki is a real estate investor in the US. He specialises in real estate syndication and emerging markets. He can be reached at Ondieki1@yahoo.com
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