Real estate market in Nakuru County is set for a major transformation beginning next year when a central database capturing all property transactions is established, removing a key barrier for investments in the multibillion shilling homes market.
The devolved unit’s administration expects to establish a central depository of all information on lettings, sales and new construction in a move expected to enable players in the sector track key trends such as pricing.
Already, the County Government is partnering with the Kenya Institute of Public Policy Research and Analysis (KIPPRA) to conduct a survey of housing trends that will map out homes and determine the supply shortfall. The information will be essential in informing new investment decisions.
‘We expect that the central depository will be an invaluable resource to all players in the housing sector because it will capture all transactions,’ said County Chief Officer for Housing and Urban Development, Engineer Kamau Kuria.
Speaking at the County headq
uarters Engineer Kuria added that the data collected will inform decision making on housing stock, budget allocations, and essential infrastructure development for both rural and urban areas.
The data base, also expected to contain information on leases and applications for building approvals, will shed light on the scale of new construction activity while enabling realtors to track the performance of the market.
Lack of such vital information as property prices in a centralized pool has resulted in incoherent pricing trends in the homes market, according to different professionals including property valuers.
There have been fears in the past that sharp increases in the property market would result in a housing bubble.
Engineer Kuria indicated that as a means of raising the profile of the Kenyan property market, property data need to be collected and real estate performance benchmarks developed for use in investment performance evaluation and decision making.
‘The property industry is arguably one of the
most lucrative and fastest growing investments in the country, but it is also riddled with lack of proper, accurate data that can be used to make investment decisions. There is, therefore, need for a thorough survey that will put an end to speculation when it comes to investing in this industry,’ stated the Chief Officer.
He pointed out planners including the national government, its strategic partners and key informants will be better positioned to help in unlocking the housing sector’s potential by providing the required data to local and foreign investors who have shown interest in tapping into this robust growth.
Engineer Kuria observed that performance measurement will benefit and inform important programme implementation processes as well as guide decisions on various interventions at local and national levels.
The CO also noted that the housing indicators collected will feed into housing policy decisions and enhance knowledge about the housing sector.
Besides furnishing the industry with sufficient
data in the property industry, the survey is also geared towards assessing housing needs and providing viable solutions for the housing sector.
The survey will provide a basis for the review and attuning of the county government’s housing policy to the Constitutional order.
According to Engineer Kuria, this is a complex, large survey. It requires fieldwork in all the eleven sub-counties as well as in specialized groups. There will be a household survey targeting owner-occupiers and renters as well as specific, smaller surveys of key building sector players – developers (formal and informal), professionals, financiers and public agencies.
The survey will consist of two main components: The household survey, which consists of all the Sub counties, including the major urban areas and rural urban areas.
A second component will involve the key informants such as housing professionals, housing financiers, housing developers and regulatory bodies.
Said Engineer Kuria, ‘It has the goal of establishing the status
of supply. This survey will also look at behavioural choices informing supply and demand and will also go in-depth with builders, financiers, professionals and even regulators to see how these groups are helping or hindering housing supply.’
The outcome, the Chief Officer pledged, will be robust and rich data that will be in the public domain for various uses.
‘The data from this exercise will be vital in policy formulation in as far as addressing housing concerns are concerned,’ he stated.
In addition, the data will guide future County Government policies in addressing the shortage in affordable housing.
Most developers have welcomed the debate over the policies that would encourage the use of new building technology. Moreover, they say there is a need for comprehensive and accurate data that paints the correct picture of housing supply.
‘The statistics we are using now to guide policy decisions are outdated, and consequently, there is a need for more up to date data,’ said Gabriel Muasya, business deve
lopment manager at Delta Smart Management properties.
‘We have been talking about 150,000 units shortage a year for close to five years now. The reality is that the figures could be much higher,’ stated Mr Muasya.
Data trends that capture the true picture of the actual level of demand and supply, needs, investment trends, investors say, has been one of the tragedies of the housing scenario in Kenya.
Kenya is said to be one of several African countries with acute housing shortage. Statistics indicate that housing supply stands at just 30,000 units a year, against a demand of 150,000 units annually.
The survey will cover households, developers, housing financiers, estate agencies and professionals among others.
Source: Kenya News Agency