Kenya’s house prices are now falling rapidly, amidst political uncertainty
After seven years of strong house price rises, Kenya's residential property market is now slowing sharply, as political uncertainty persists after petitions have been filed before the Supreme Court to overturn Uhuru Kenyatta's victory in the October repeat election.
During the year to Q3 2017, the Hass Composite Property Sales Index, a measure of asking sales prices of residential properties, fell by 5.1%, in sharp contrast with a y-o-y rise of 10.4% during the same period last year, based on a report released by HassConsult Limited. It was the second consecutive quarter of y-o-y price declines after falling by 2.2% in Q2 2017.
Quarter-on-quarter, residential property prices dropped 1.8% in Q3 2017.
"Buyers are sensitive to risks associated with the political process and are therefore unlikely to make decisions until there is an end to this period," said Sakina Hassanali, Head of Development Consulting and Research at HassConsult.
Foreigners can freely buy 'commercial class' land in Kenya. This type of land is for income or revenue-making purposes.