What's the most important thing to look for in real estate? 

While location is always a key consideration, there are numerous other factors that help determine if an investment is right for you. 

Here's a look at some of the most important things to consider if you plan to invest in the real estate market in Kenya;

1. Market Demand and Supply
   
   Demographics: Population growth, age distribution, household formation among others ensures the area you choose to invest in will appreciate in value over time.
   
   Economic Conditions: of the large populace from local to national, employment levels, the job market and income levels will greatly determine your investing choice.
   
   Lifestyle Trends: whether people like living in urban areas, or rural retreats, do they have families or are they single.
   
   

2. Location, location, location
   
   Accessibility; to transportation hubs, highways and public amenities.
   
   Amenities; the availability of schools, hospitals, shopping centres, and recreational facilities.
   
   Infrastructure Development; the quality of roads, utilities and public services.
   
   Zoning regulations of the area and the land use restrictions and development guidelines from the county will greatly influence the mode of investing.
   
   Neighborhood Dynamics of the area will determine the appreciation rate of your investment. Presence of schools in the area, malls and green spaces are a determining factor.

3. Financing and Economic Conditions
   
   Interest rates at the time, as high interest rates can hinder progress and the project feasibility.
   

   Loan to Value Ratios; This is the amount a lender is willing to finance relative to the property’s value.
   
   The lower the LTV, the lower the risk for the investor.

   A lower LTV ratio can help borrowers receive better mortgage interest rates. As the LTV ratio rises, so do the interest rates offered by the lender.
   
   Investor Confidence: Positive economic outlook and investor sentiment drive development in the real estate sector.
   
   
4. Development Costs
   
   Land Acquisition; the price of land and associated costs { zoning, permits, legal fees, transfer fees etc}
   
   Construction costs; which include building materials, labour, and project management fees.
   
   Utilities and Infrastructure: such as water, electricity, drainage among other essentials.
   
   

5. Sustainability and Environmental factors
   
   Green building practices that promote sustainability in our environment and cause less pollution in the environment.
   
   Community impact of the development on the local environment and residents.
   
   

6. Overall Real Estate Market.
   
   

   Like any other investment, the real estate market fluctuates and it pays to be aware of trends.
   
   So what can you look out for:
   
   Home prices and home sales [ overall in your desired location].

   New construction, that's taking place in your desired location.

   Current mortgage rates in the market will help you make informed decisions when investing.

Real estate investing is a profitable venture, it is necessary to understand the different types of markets that would favour your investment.

As a real estate firm, we sell housing and mixed use developments  in Kiambu, Thika and Naivasha, and they include  Legacy Ridges and Riverline Ridges in Kiambu,  Thika Grove Chania in Thika, Finpark Estate in Ruai, and Bliss Water Park in Naivasha.

This creates a wide variety of options to  investors looking for something different in the real estate market.

Our experienced property consultants are always available on call and in office to help you begin your real estate investment journey. 

Reach out to us via, 0709 677 377 or send us an email on sales@finscoafrica.com.