MIP WEEKLY CONSTRUCTION INDUSTRIAL REPORT NO. 3
Period:August 9 to 15, 2015
Nairobi ranked 120/140 city to live in
19/08/2015: Business Daily, page 5
- Nairobi’s poor ranking was due to the poor state of security, corruption as well as wobbly public schools and hospitals. In addition, poor roads, traffic jams and unstable electricity also contributed to this poor ranking.
- Kenya comes 5th after Johannesburg, Pretoria, Tunis and Casablanca.
- Although in overall ranking Nairobi ranked poorly, it has improved 2 places from 122/140 last year. It was also among the most improved over the past 5 years together with Zimbabwe’s Harare, China’s Beijing and UAE’s Dubai.
Assets management industry in Kenya prepares to fly
15 – 21/08/2015:East African Weekly, page 44
- Kenya’s asset management industry is the second-fastest growing industry of its kind, particularly in Real Estate Investment Trust(REITS)
- Overall, Kenya’s asset management industry shows great promise in quality and infrastructure thus expanding the financial services sector and the GDP
Weakening of Shilling hurts Real Estate sector
20/08/2015: Daily Nation, DN2 Magazine, page 2
- The Construction cost has risen by about 15% since the beginning of the year, as a result of weakening shilling that has seen high import cost and the existing loans going up by at least 1.5%.
- Home owners who bought their units off-plan remain unaffected.
City Houses on Wetlands and Roads reserve to be torn down
21/08/2015: Sunday Nation, page 17
Several buildings in Nairobi will be pulled down after the county assembly passed a law that paves the way for demolition of all unauthorized constructions.
City land prices hit all-time high
21/08/2015: Business Daily, page 8
The land index for the second quarter of 2015 released by Hass Consult indicates that the highest prices in the Nairobi Suburbs and Satellite towns averages around Kshs. 493 million per acre in the Upper Hill areas. Kilimani, Parklands and Westlands follow with Kshs. 410 million, Kshs. 386 million and Kshs.380 million respectively.
Satellite towns have become favorite for development of low to middle-income housing
23/08/2015: Cytonn Investment
- The relative affordability in satellite towns coupled with the major infrastructure developments have made the construction of low to middle-income housing a compelling theme.
- According to the Hass Consult Q2 land index report, Satellite towns have registered a staggering 6.38% increase in prices from 2007-2014 as a result.