The growth of Kenya's affluent middle class and the development of its mortgage market have led to the rapid appreciation of property prices in Nairobi and other key towns in the past eight years, it has been reported.
According to the Business Daily Africa, such rising property prices have helped the Kenyan middle class to climb the housing ladder from the "entry point" of two bedroom apartments to high-end villas in less than 20 years.
The news outlet reported exclusively on research by HassConsult and Stanbic Investments which found that apartment prices have appreciated at an average rate of ten per cent every year since 2000, while town houses and standalone units grew at the rate of between 16 and 26 per cent respectively during the same period.
In addition, the research found that while such rises have helped young people to reap the value of their initial investment and reinvest in bigger houses
, home borrowing has also come down by more than half over the period to the current industry average of about 13 per cent. This has coincided with the growth in earnings of the emerging middle class and the development of "middle class gated community neighbourhoods", it was found.
- Tuesday 26 October 2010