Property website Lamudi has today released its first research report on real estate in the emerging markets. The company’s inaugural white paper provides a comprehensive overview of the future of the property sector in 16 countries in Asia, Africa, the Middle East, and Latin America.
The report, Real Estate in the Emerging Markets, provides a comprehensive overview of the future of the property sector in 16 countries, including Kenya. Based on a series of online surveys conducted with house-hunters and real estate agents in each country, the report examines the habits of online property-seekers.
Kenya in particular, showed promising results for the economy as a whole and especially the real estate sector. With lower interest rates, the populations spending income increases creating a surge in demand for real estate.
Kenya, being the largest East African economy, has attracted a large number of expats, as well as significant amounts of foreign direct investment. The recent developments in infrastructure, have created numerous job opportunities across the country and have sparked further economic growth for Kenya. The real estate market has largely profited from this as well and will continue to grow in the future.
The report explains that right now Kenya has been a destination for both tourist and business; with this, the demand for real estate and residential has grown so as to feed the demand.
Another factor that is making the real estate business to boom is the fact that most of the Kenyan population is of the age of 55 and below. This age distribution, the report says has positive implication to both the economy and the real estate business.
‘This age distribution has positive implications for future economic developments; since the predominantly young population will be able to supply sufficient economic prosperity to support the country’s aging population. As Kenya moves towards a stronger middle class, the demand for residential real estate, as well as commercial developments, will grow significantly,’ says the report.
Lamudi co-founder, Kian Moini, said: “The Kenyan real estate market is focused on renting properties, with 70 percent of house hunters looking to rent. Although there is an imbalance between the supply of housing and the current demand, this gap provides investors and developers with a great opportunity to make capital gains and fuel the economy. Especially with lower interest rates, the real estate market has great potential for growth.”
The 16 countries covered in the report are: Indonesia, the Philippines, Myanmar,Bangladesh, Pakistan, Sri Lanka, Jordan, Saudi Arabia, Nigeria, Kenya, Tanzania, Morocco,Ghana, Ivory Coast, Mexico and Colombia.