Published on 22 September 2005 at 07:48 pm
Filed under: Africa:- Kenya Property Guides » Kenya for Property Investors
The 2002 elections in Kenya brought a change of government and a change in Kenya’s fortunes. Property investors examining the emerging real estate market in Kenya can now see massive opportunity where once there was massive risk, and the profitability of investment made into the Kenyan property market in the past few years is now beginning to show.
The majority of property investment opportunities currently in existence are situated all along the stunning tropical Indian Ocean coastline or within the many game reserves Kenya is so famous for. There are a number of areas of the country considered untouchable, but very gradually even in these areas the corruption and crime is giving way to opportunity and growth.
Until 2002 Kenya was governed non-democratically for decades and the country endured serious levels of corruption and rising crime. Kenya’s economy suffered greatly and its people suffered further when aid aimed at assisting them build their economy was prevented from being correctly distributed and then stopped altogether by external agencies.
Throughout this time however, there was never any detracting from this East African country’s natural beauty, incredible scenery and abundance of rare and amazing wildlife. Its tourism sector continued to flourish and the country even attracted property investment into the game reserves in the form of commercial lodges for tourism and also along the Indian Ocean coastal region in the form of a few second home and retirement home developments as well as some holiday resort commercial ventures as well.
The 2002 elections were seen as being key to the immediate success or otherwise of Kenya’s economy and it was with a worldwide sigh or relief that the opposition party were democratically elected to office. They were then faced with the enormous task of taking an economy in decline and turning it to prosperous, of rooting out corruption and of attracting sustained aid and foreign investment.
So far the government are right on track with their reforms, corruption busting and general economic recovery and Kenya’s GDP managed to grow by 2.2% in 2004 - this figure may seem startlingly low but it was actually seen as a very strong recovery for the country.
All of these facts have resulted in an initial surge and then steady stream of overseas investors ploughing money into the tourism and related real estate sectors in Kenya and into resort, holiday home and retirement property developments in the game reserves and on the seashore. Residential property investment opportunities in Kenya exist for the smaller personal investor and commercial real estate possibilities are developing all the time for larger or corporate investors looking for a true emerging market with long term sustained opportunity for growth, profit and yield.
The numbers of visitors to Kenya is increasing annually further boosting the more conservative business confidence in the country and gradually the economic fortunes of Kenya are beginning to see a sustained positive shift. There is no denying the fact that the country has a long way to go to transform itself - but the foundations have been laid and independent international investment is flowing inward and being actively encouraged by the Kenyan authorities.
Those looking for a unique, long term residential or commercial property investment opportunity have significant choice in Kenya; those who have invested into the real estate sector in this emerging economy are already starting to see strong rental yield returns from the growing tourism sector and also solid price growth in their underlying investment commodity.
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