Developer to handover 69 residential units by June this year as economic indicators point to a stable housing market

Developer to handover 69 residential units by June this year as economic indicators point to a stable housing market

By Ronald Owili 

Low-cost housing developer Mizizi Africa Homes is set to hand over a total of 69 units to customers over the first half of 2022

The developer has said three housing projects whose construction started towards the close of 2020 are nearing completion and will be handed to their respective owners by the end of June this year.

According to the realtor, three estates, Peacock phase 1 is currently at 80% complete being one of their biggest project with 41 units, while Humming Bird Estate with 14 units is at 90% complete. The third project, Pigeon Estate with 14 units is also at 95% complete.

“This is our biggest year yet, when we will be handing over the largest number of affordable units to Kenya, affirming our resolve in bridging the huge housing gap in the country,” says George Mburu, Mizizi Africa chief executive officer.

In 2020, the real estate firm handed over Penguin Estate – its first project with a total of 16 units comprising two and three-bedroom houses. Last year, it handed over Heritage Phase 1 with 18 units.

Three other projects with a total of 57 units are also coming up with more than 50% completion rates. They are Peacock phase 2 with the most number of units with 25 alongside Heritage Phase 2 and SSS Waiganjo having 16 units each.

“We are happy with the progress so far. These projects have all taken into consideration the evolving needs of 21st century buyers. Our key differentiator are the spaces in the buildings and introduction of flat roofs-Units are large enough giving customers the ultimate living experience,” adds Mr Mburu.

With about 130 days to the forth coming August 9 General Election, the developer projects a more stable housing market thanks to rising economic growth trends in election years. At the same time, there will be a quick rebound during elections because leaders tend to focus their campaigns towards a greater good for households and businesses.

“This year is pretty different compared to other past election years. At a time like this a number of people would be thinking of going back to their tribal cacoon instead. This is not happening partly supported by the fact that political leaders are uniting us through discussions on economic and social issues,” says Mburu.

Kenya’s economic cycles in 2013 and 2017 grew slightly compared to historical dips in economies over the past years, with unemployment easing from 7.9% at the start of 2013 to 7.2% by close of the year. In 2017, the economy grew by 0.62% from 2016.

“We expect this year to be even better as the country entrench issue based politics,” he says.

According to the Kenya National Bureau of Statistics (KNBS) Q3’2021 GDP Report shows the Real Estate Sector grew marginally by 5.2%, 0.3% points higher than the 4.9% growth recorded in Q2’2021.

A more favorable business environment, Mburu said, enabled the country to boost investment in affordable housing to bridge the housing deficit by pushing more people into home ownership.

“Affordable housing is the only gateway to solving the housing deficit in the country and improve livelihoods,” said Mburu.

Center for Affordable Housing shows low-cost affordable houses currently account for a paltry 2 percent (1,000 units) whereas units targeted for high and middle income earners takes the lion’s share of 98% representing 49,000 units.

Stability in housing market despite elections

The developer also projects a more stable housing market, on rising economic growth trends in election years and as leaders focus their campaigns towards a greater good for households and businesses.

“This year is pretty different compared to other past election years. At a time like this a number of people would be thinking of going back to their tribal cacoon instead. This is not happening partly supported by the fact that political leaders are uniting us through discussions on economic and social issues,” said George Mburu, Mizizi Africa Homes Chief Executive Officer.

Kenya’s economic cycles in 2013 and 2017 grew slightly compared to historical dips in economies over the past years, with unemployment easing from 7.9% at the start of 2013 to 7.2% by close of the year. In 2017, the economy grew by 0.62% from 2016.

“We expect this year to be even better as the country entrench issue based politics,” he said.

KNBS third quarter (Q3’) 2021 GDP report shows that real estate sector grew marginally by 5.2%, 0.3% points higher than the 4.9% growth recorded in second quarter (Q2’) 2021.

A more favorable business environment, Mburu says, enabled the country to boost investment in affordable housing to bridge the housing deficit by pushing more people into home ownership.

“Affordable housing is the only gateway to solving the housing deficit in the country and improve livelihoods,” says Mburu.

Center for Affordable Housing shows low-cost affordable houses currently account for a paltry 2% (Which is about 1,000 units) whereas units targeted for high and middle income earners takes the lion’s share of 98% representing 49,000 units. 

– KNA

Leave a Reply

Your email address will not be published. Required fields are marked *

Sign Up