Also known as a multi-dwelling unit, multifamily residential is a classification of housing where many units are contained within one or several buildings within a complex. As cities grow ever more crowded, multifamily housing construction is more necessary than ever, and finding innovative ways to create true homes now calls for a complex blend of innovative design and engineering.

The present developers are noting occupants’ interest for more advanced offerings and making considerations that were looked as extravagances a couple of years back, for example, stone ledges, hardwood floors, and power-efficient devices. To take into account the developing “live, work, & play” consumer trend, developers in urban communities in the country are serving up a variety of new luxuries. The present multi-family tenants are searching for a home area that is something beyond a foundation, and a home that effectively upgrades their personal satisfaction with a blend of modern engaging features. Although a rundown of the present sought after conveniences is varied, clear themes are emerging in latest updates: adaptability, community, connectivity, and sustainability. This feature discusses some of the things tenants in multifamily residences demand in current-day living.

In multifamily structures today, residents need to feel a part of a thriving community. That same intuition is, all things considered, a major piece of why individuals live in urban regions. So it follows that most of the popular developments over the most recent years have been those that bring together individuals, by offering amenities such as clubhouses, play zones, and being in close proximity to schools and commercial centers.

But there is significantly more to the present multifamily development trends than a cool clubhouse. Designs that allow community associations and occasions help make a feeling of togetherness where neighbors can get on a first-name basis with each other. Similarly, there is a solid return on initial capital investment for proprietors who nurture a solid community in their building. A resident for example, is significantly more predisposed to renew a lease agreement when the ground floor neighbor can water her plants while she is away.

In-person engagement isn’t the only sort of connectivity on tap. Digital connectivity is a noteworthy driver of progress in multifamily residences as well. With the ascent of the Internet of Things (IoT) and smart buildings, interest for a more interconnected living experience is at an unsurpassed high and developers in Kenya are attempting to deliver. Property-wide WiFi has become pervasive and occupants’ appetites are quickly growing for significantly more sophisticated offerings.
In-unit smart home systems are growing in attractiveness in multifamilies as consumers are more accustomed to using technology in every part aspect of their lives. A few developers are reacting with incorporated systems that enable occupants to control lighting, the thermostat among others with a convenient use of an application.

Transportation is another noteworthy consideration for multifamily residents—and they’re not only always searching for parking spaces. An increasing health conscious population means there is a growing use of bicycles. Therefore, making secure storage for bicycles may be one of the things developers need to consider when developing such kind of property. Proximity to open travel and walkable neighborhoods are additionally, a key draw for residents. And for individuals who use car-sharing services like Uber, among others, developers will need to create dedicated waiting spaces.

As consumer desires change in accordance with lifestyle trends and developing innovation, the enhancements that appear to be innovative today will soon end up standard offerings. Developers are increasingly offering much as far as more complex comforts supply. To remain ahead, they ought to constantly invigorate their offerings. However, these need to go past gimmicky to really address the issues of occupants of all ages. And whereas swimming pools are ending up more typical, there is an amazing absence of indoor playrooms in the present multi-family structures. As more couples begin their families in apartments and the older parents search for ways to engage grandkids, play spaces will offer a major draw in this concept of the residential real estate.
No single unit created piece will have the capacity to offer all the amenities. However, those that give occupants great availability, versatility and a sense of community stand to remain a preference as far as present-day living is concerned.

KENYA REAL ESTATE TRENDS

Carelessness in cost variations mar Nairobi’s construction projects

Almost all construction projects may vary from the original design, scope, and definition. Small or large, projects will inevitably depart from the original tendered design or specification. Cost variations may also occur. This is almost inevitable. In Nairobi, however, more projects are being halted on the account of high-cost variations that leave developers with no choice as costs run to unaffordable levels.
One of the leading cause of cost variation is in encountered in soil conditions not previously envisaged in the project costing. For instance, if a 4-meter black cotton soil is encountered during construction, it may necessitate the need for a semi-basement not originally included in the plan which could result in significant cost variations that throw off-balance the project’s initial feasibility. While most developers may not consider a soil investigation after the purchase of land, cases of exploitation by land sellers are still on the rise with sellers going as far as making a layer of the preferable soil type, then planting grass to deceive buyers who often reiterate surprises during construction.

Kenya’s first land bank set-up to address land acquisition challenges in low-cost housing

In April 2017, Tata Housing Company announced plans to raise Ksh 15 Billion for low cost residential and commercial development across major towns in Kenya. The project, which targeted to develop at least 4.5 million square feet of mixed-use townships was set to break ground in January 2018. However, this is yet to happen as the company suffered major setbacks when it failed to obtain free land for the project.

To this effect, the government is in the process of establishing Kenya’s first land bank to serve local and international investors to address the challenge by investors seeking to acquire land for low-cost housing. The land ministry is preparing to conduct a detailed analysis of Kenyan parastatals to establish those that hold more land than they need, with a view to having them release the excess parcels to the land bank. The state has pledged to offer 7000 acres of land as part of the incentive package.

GLOBAL REAL ESTATE TRENDS

 Medical Tourism set to boost the demand for healthcare facilities management in the Asia Pacific

A recent business intelligence study shows that there will be increased collaborations between the health facilities management companies and local vendors in the Asia Pacific region as the demand for medical tourism rises. The region, which houses a number of developing economies is projected to have the most prominent growth during the forecast period of 2017 – 2025 worldwide. The popularity of medical tourism, an ever-increasing disposable income of the urban population, the prevalence of chronic disease, technological advancements, and an increasing support from governments are some of the primary reasons why the number of key companies in healthcare facilities management market is having a foray in the Asia Pacific.

Cleaning remains the most important segment, followed by mechanical and electrical maintenance, security and administrative services. Kenya is set to follow in the same steps as the government embarks on healthcare improvement strategies to promote Kenya as a medical destination as the country receives 3000-5000 foreigners seeking treatment each year whereas, more than 10000 Kenyans travel abroad to seek advanced medical treatment. To this effect, the healthcare system has seen the implementation of various equipment services covering 98 hospitals, namely renal equipment, ICUs, and radiology equipment.

The building boom in universities set to reshape England’s cities

The higher education sector in England has embarked on an era of expansion. In a report published by the Higher Education Funding Council for England, the sector had spent 27.9 billion euros in improving physical infrastructure beginning 2006-2017 and forecasts a further 19.4 billion to be invested in the period 2016/17 to 2019/20. Many of expansion projects are driven by the International focus on scientific and commercial innovation.

The University of Manchester, for example, is investing 350 million euros in its new engineering precinct due for completion in 2021 while the University of Bristol’s development of a 300 million euros outpost is closely tied to urban regeneration. This is similar to the current state of development in the Kenyan higher education sector where more institutions of learning are deliberately seeking closer integration with urban life while others invest in incubation hubs. The trend for large-scale expansion has been linked to the perception of universities as economic engines.

THIS WEEK IN KENYA REAL ESTATE

This week’s focus is on the sales and rental prices for 3 bed-roomed apartments in Thindigua and Ruaka. Statistics in the tables below were derived from listings by property firms in Kenya, and analysis was conducted to provide an insight into the varying prices for investors looking to purchase or rent an apartment within the two areas.

3 bed-roomed apartments’ sales prices

3 bedroomed apartments’ rental prices

KENYA INTEREST RATE WATCH

This week, treasury bills subscribed at 104% down from 162.5346% the previous week. The 91 –Day, 182-Day and 364 –Day bills yielded 8%, 10.268%, and 11.143% rates respectively with the 364- Day bills outperforming the 92 and 182-day bills at 128.43%

Out of the 24million government offered treasury bills, the total accepted bids were 19,529,790 million.

KENYA EQUITIES MARKET WATCH

Total shares traded in the week decreased by a margin of 4 percent down from 22,343,500 last week while the NASI and the NSE 20 Share index recorded a decrease and an increase respectively.
Market capitalization decreased by 1.91 percent indicating an appreciation in prices due to decreased trading. I-REIT Turnover was 11, 180 and the number of I-REIT deals recorded were 5.

MARKET ANALYSIS SUMMARY

WWP Scan Group dominated the gainers’ chart at a 9.71 percent gain, followed by Trans-Century Limited, Pan Africa Insurance Holdings and Express Kenya at 6.52, 6.45, and 6.45 respectively.
The top three losers of the week were Williamson Tea, Standard Chartered Bank and Stanlib Fahari I-REIT closing at 3.71, 3.67, and 3.04 percent loss

CURRENCY HIGHLIGHTS

This week, the shilling weakened against the Euro and the sterling pound at 0.015 and 0.017 percent and further weakened against the Asian currencies (the Chinese Yuan and the Indian Rupee) at 0.006 and 0.014 respectively.

In the East African region, however, the shilling performed well against the East African currencies closing at 36.89 and 22.68 against the Ugandan and the Tanzanian shilling respectively.