A look at the Hidden Costs of Investing in Real Estate and Development in Kenya, as an Investment Guide for New Investors in Kenya Real Estate Market.
There are many opportunities for higher and consistent returns in real estate and development, which is driven by rising population and urbanization growth in Kenya. Furthermore, Real Estate investments are not vulnerable to short term fluctuations as it consistently increases in value over time, outperforming other investment assets.
Meanwhile, before venturing into a Real estate investment and development, it is essential for a Real Estate Investor to understand all the costs associated with it to reduce the scenario of unexpected expenses arising in the course of the development and investment. Moreover, during a purchase process, the excitement that new investors possess could lead to costs that are not very obvious underestimated or ignored during the budget planning. However, the cost could amount to a significant amount if the transaction process is not meticulously taken, and as such, an investor must understand all the costs associated with the construction process, the statutory approval fees, purchase costs, and the much hidden costs mentioned here below:
Building approval cost.
An Investor should take note of the approval costs that are associated with development of a new building. As such, the investor should take note of building plan approval cost, which attracts an estimated cost of approximately 1% of the estimated construction cost. The approval building costs include costs associated with approval of Architectural and Structural plans which are associated with construction signboard and occupation certificate, as well as Site Perimeter Hoarding license costs. Costs associated with NEMA approvals have since been waived by the Government, but it is important for the Investors to factor any expense cost related to this licenses.
Construction permit costs.
Besides, the investor should not overlook the construction permit costs, which involve registration of the development with the National Construction Authority (NCA). This cost has also been waived by the Government in the last two years, but it is important for the Investors to factor any expense cost related to this license.
Professional consultation fee cost
Its is as well crucial for an investor to understand that the design and documentation stage for a project requires a lot of resources and expertise. During this stage of project development, there is a lot of technical, professional, and administrative expertise ranging from site studies, design conceptualization, production of initial drawings, 3D visualization of the project and presentation, schematic design, and detailing as well as Bills of Quantities and Tender documentations. As such, services rendered by Architects, Quantity Surveyors, Structural Engineer, Services Engineer, Finance Consultant, and Market Research Experts will attract a total professional fees ranging between 8 and 13% depending on the scope of the project.
In case of renovation projects, Professional services usually attract a much higher fees than new site development.
Professional consultation fees also include:
- Project Finance Brokerage Fees for projects requiring injection of equity or debt funding.
- Legal Fees associated with structuring of special purpose vehicle, for Joint Venture Real Estate Investment Projects.
Cost of Finance and Interest Rates
Additionally, Interest rates and mortgage rates affect the cost of financing in commercial real estate projects, and as such, they can either increase or decrease the cost of finance in a project. Various ways of structuring funding for a real estate project and draw-down of the same also affects the overall cost of finance in a project. It is therefore important to engage the professional service of a Project Finance Consultant to help in structuring and negotiating for viable finance structure with the lender or investor.
Marketing Costs for Real Estate Projects
Marketing Costs are often ignored by most developers and investors during budget appraisal for a project, despite these cost forming a huge input costs in a real estate investment project. The costs associated with marketing include those for preparation of Market Strategy Plan, Advertising, Brand Awareness of the proposed Real Estate Product, and Marketing Costs.
Purchase transactions of real estate property is also associated with a variety of hidden costs, which include:
Due Diligence and Inspection Costs
When purchasing a property, it is vital for an investor to hire a certified Due Diligence Expert before settling on buying the property. The costs associated with this procedure should be accounted for in the investor’s budget. Moreover, the investor should account for travel costs which will be incurred during the property search and inspection in terms of fuel, parking, and tolls.
Legal conveyance fees
Furthermore, Investors should seek the help of a lawyer during a purchase deal. As such, an investor should get a lawyer to help them in legal due diligence of the transaction, for investment risks management. Furthermore, investors should take note of the costs incurred in legal charges collected by the Government to register the property in the name of the new buyers.
Stamp duty fees
Besides, the tax applied to the property documents during a buy or a sell transaction should not be overlooked. Consequently, Investors should account for the stamp duty, which is dependent on the property’s location, with the transfer of immovable property in urban areas attracting a stamp duty rate of up to 4%.
Capital gain tax
Moreover, most investors tend to underestimate the cost of capital gain tax – which is usually the final tax valued at 5% of the net gain during the purchase transaction. As such, new Real Estate investors should take note of this cost, which usually arise during the purchase transaction.
Mortgage fee
Additionally, most people finance properties on credit, and as such, an investor is advised to take a mortgage broker who will negotiate the mortgage terms with the financial institutions on their behalf. Furthermore, Investors should take note of the non-refundable mortgage application fee charged by most commercial banks and institutions irrespective of whether or not the mortgage goes through.
Property Insurance Costs
It’s as well crucial for the new real estate investors to take note of insurance cost associated with the property and consequently, the cost of hiring a consultant to help in negotiating the property’s insurance policy
Real Estate agent commission
At times, investors tend to ignore the commission associated with the purchase transaction – usually paid to the real estate agents and the property listing companies. As such, the new Real Estate investor should not overlook the importance of a real estate agent as they are usually the first contact during a real estate deal, especially with the purchase of land and commercial properties.
Land registration and transfer fee
In addition to the stamp and statutory fee, investors should also take note of the price associated with the registering of their property as physical security as well as the cost associated with the title transfer whose rate varies from county to county.
Valuation cost.
Furthermore, Valuation costs should not be ignored, and Property Valuers should be sought to the site to evaluate and verify the indicative purchase price of the property, as well as to establish the price for accurate tax evaluation and payment.
Nevertheless, to avoid the hidden cost when purchasing a property, it is vital for real estate investors to seek the services of a Building Professional in development project, and a Real Estate Professional for purchase transaction, so as to help in consolidating all the costs in the budget appropriately.
Buildafrique Consulting Group is a specialist in Real Estate Project Development and Consultancy in Kenya, through its End-to-end development Consultancy business model, with consultancy services and solutions including: conducting Real Estate Feasibility Studies in Kenya, Real Estate Finance, Development Project Management, Quantity Surveying, Physical Planning, Property Valuation, and Property Management
B.) WEEKLY NEWS HIGHLIGHTS
MAJOR ECONOMIC NEWS HIGHLIGHT.
i.) National Treasury Plans to build a state bank
The Kenya National Treasury is seeking to merge three big corporations; Tourism Finance Corporation, Industrial and Commercial Development Corporation, and IDB Kenya limited, to form a state bank. The bank is intended to provide venture capital, seed and risk capital to ventures at the same time, and it is expected to lend support to medium and large scale industries, infrastructure projects and commercial undertakings. As such Kenyans are expected to contribute to the draft Kenya Development Bank, 2020 bill developed by the National Treasury by June 19, 2020
ii.) AGF guarantees to restructure SMEs’ loans.
Following the creation of the AGF Covid-19 Guarantee facility, The African Guarantee Fund, which is a non-banking institution, set KSh 127.9 billion for guaranteeing the SMEs to have their loans with the commercial banks restructured. Besides, the fund said in a statement that the AGF Covid-19 Guarantee facility would allow SMEs to pay less for their loans over a given period than what they had been paying, and therefore cope better in the face of the Covid-19.
iii.) KRA pays out VAT refunds
Following the president’s directive to the National Treasury on March 25, The Kenya Revenue Authority began paying out Sh.10 billion in Value Added Tax refunds. In a statement, Elizabeth Meyo-Commissioner for domestic Taxes said the exercise which started on May 30, was projected to end in a week.
iv.) Private sector activities still on a downward trajectory
A new report by Stanbic East Africa shows that the Kenyan private-sector output and demand continued to plummet despite business activities going up slightly in May. The report, released on June 4, further stated that the harsh economic environment worsened by the Covid-19 pandemic saw higher costs passed on the consumer resulting in a decline in sales for businesses.
CONSTRUCTION NEWS HIGHLIGHTS
i.) NCA caution against hiring unlicensed contractors.
The National Construction Authority cautioned property developers in a public notice against contracting unregistered contractors whom the authority claims are responsible for the surge in the number of substandard buildings in the country. The notice further stated that the law requires that only registered professionals be allowed to offer design and related implementation services on construction projects, and engaging non-registered persons is not only in contravention of the law but is also dangerous as it will produce poor quality construction work.
ii.) AAK pushes for redesigning of public and private buildings.
The Architectural Association of Kenya has pushed for a redesign of private and public buildings to accommodate spaces to cater to the social distancing requirement to deter the spread of the Corona Virus. Speaking during the launch of #JeUnaMjengo, an annual AAK-sponsored campaign, AAK President Mugure Njendu said on May 25 that future construction would have to accommodate designs where office spaces will be more aerated and spacious, restrooms redesigned, and signage given more prominence.
iii.) Ministry of Urban Development and Infrastructure invite project consultants or talks on defective construction laws.
Transport and Urban Development Secretary James Macharia vouched for a consultative process to review the controversial building defect law that apportions blame for poorly built properties to project consultants. As such, the ministry invited project managers on June 2 for consultative talks on the bill as the Government remains committed to providing legislation that reflects government policy in the construction industry, which is inclusive of stakeholders’ interest.
iv.) Nakuru County Government declared a moratorium on building approvals for structures within CBD
Following a red alert issued by geologists for tall buildings in Nakuru, the county government declared a moratorium on building approvals for structures within the CBD and its suburbs. Furthermore, seismologists and geologists from Kengen and Geothermal Development Company confirmed that the area was experiencing subtle volcanic faulting and, as such, called on the county administration to put in place systems to monitor seismic activities.
COMMERCIAL REAL ESTATE HIGHLIGHTS
i.) Depressed valuation of land and housing assets widened home Africa’s KSh 887 million loses
Home Africa, a listed real estate developer, sunk into 887 million loss for the year ending December 2019 despite the firm posting a 233 percent in gross revenue from Sh109 million to Sh363 in 2019 up from Sh109 in 2018. Besides, the managing director noted that the loss was attributed to a depressed valuation of land and housing assets, which contributed Sh391 million to the woes.
ii.) Government to extend the Ksh 2 billion exchequers to hotels and restaurants.
On Madaraka day, President Uhuru Kenyatta announced initial exchequer support of 2 billion to hotels and related establishments as part of the Sh53.7 billion stimulus program, to shield jobs in the sector amid redundancy notices. Furthermore, the president said that the move would jumpstart the tourism sector and protect its players from substantial financial losses.
iii.) High-end hotels take measures as they consider reopening.
Top hotels like Villa Rosa Kempinski, Ole Sereni, Hemingways Watamu, Radisson Blu Arboretum, and Trademark Hotel took measures to reopen amid a disturbing cash flow and to protect their income. Besides, they reopened their restaurants for take away and dine-in options as well as home and office deliveries and as well, rearranged their sitting arrangements taking into account social distancing.
iv.) NEMA calls for public views on Jevanjee housing complex
National environmental management agency called on public views on June 4 for a project that the Government plans to demolish Jevanjee Estate Bungalows to pave the way for new 1,800 units in 15 high rise blocks. The development comes after all old tenants were funded to a tune of Ksh 600,000 by the Government to relocate to pave the way for demolition.
C.) KENYA REAL ESTATE TRENDS
I.) Health Care Real Estate gains traction among real estate investors amid Covid-19 in Kenya.
According to the latest report by Knight Frank, there has been a growing interest in Health Care Real Estate in Kenya and across Africa. The report released on May 26 indicated that more Health care investment gained traction among real estate investors due to a growing population, middle class, and urbanization. Kenya’s need for additional space to cater to an increasing need for extra hospital beds to meet the existing deficit at the global average hospital bed density has also raised the demand for hospital space- currently, Kenya has a shortage of 691,000 beds.
Besides, in the recent months, Kenya has seen major healthcare real estate projects such as the Muranga county 35- bed ICU unit, the state of the art Naivasha outpatient complex, and the sh15 billion private hospital project within the Kenyatta National Hospital, the 45 billion Kabarak Hospital project among other hospital construction projects by the county governments. According to the Knight Frank report, Investors are considering healthcare assets as attractive investment options due to their defensible nature, triple net lease provision, and sustainable demand. Furthermore, Investing in healthcare presents an opportunity for urban developments to benefit from the synergies a healthcare component has to offer.
ii.) House prices continue in a downward trajectory.
According to a housing price index released by Kenya Bankers Association (KBA-HPI), for May 2020, housing prices have remained in a downward trajectory for the fifth consecutive quarter. According to the report, house prices dipped by 0.54 percent in the first quota of 2020 compared to a 0.61 percent plummet in the last quota of 2019.
Besides, the market remained relatively depressed as the housing sector started the year with a lack of momentum as most potential buyers could not afford homes that were on offer. Additionally, the director of Research and Policy at KBA, Jared Osoro, stated that the shift in trends reflected buyers’ adjustment as affordability remained a crucial concern in the housing market.
D.) GLOBAL REAL ESTATE TRENDS
i.) Sales of new homes in the USA surges amid Covid-19.
According to USA trading economics, the sale of new single-family homes rose 0.6 percent month-over-month to an annualized rate of 623,000 in April 2020, beating projection of a 21.4 percent drop. Besides, in the southern states, sales rose by 2.1 percent to 379,000, while in the Midwest and the Northeast, sales rose by 2.4 and 8.7 percent to 86,000 and 35,000 units, respectively.
Besides, the number of new homes in the market reduced by 1.8 percent down to 325,000 homes in April as they were in March. The rise in the sale of new single house homes was attributed to the reduced house price and mortgage rates (The median new house price fell to USD 309,900 from USD 339,000 a year ago). Moreover, economists projected that the sale might surge in the second half as economies reopen in some states and especially in New York, where real estate was reclassified as an essential business.
ii.) Real estate surges in the U.K. after the Government lifts restrictions.
Following the move taken by the U.K. government on May 28 to relax its real estate sector restriction measures, the U.Ks property market has seen an upward trend with online listings recording a surge in terms of traffic on their property listing sites. Besides, Rightmove, an online property listing site, recorded high traffic on its site week-over-week as enthusiastic buyers leapt back into action with more than 6 million property searches for the first time since 2000 in a week period – equivalent to 18 percent surge as compared to 2019.
At the same time, there was a surge of 18% in the number of people who contacted real estate agents requesting to buy houses in the same period. Besides, the Rightmove’s report indicated that the late spring boost was attributed to the pent-up demand and new people entering the market. Furthermore, the challenge for agents will be to handle the surge while maintaining social distance and safe physical or virtual viewing.
E.) COMMON REAL ESTATE & DEVELOPMENT CHALLENGES, AND SOLUTIONS
Managing the Cost of Finance (Interest) on a Real Estate Investment Project.
YOUR CHALLENGE:
In modern real estate investment; a need to source external funding is inevitable because of the huge capital requirement coupled with relatively big scope in modern projects, as well as the need to leverage through borrowing or seeking an equity partner into the Project. The challenge comes in finding ways to reduce the cost of finance in the project; which can also be interpreted as to how to reduce the interest rate for debt or equity funding.
THE SOLUTIONS:
There are a number of ways to reduce the cost of finance in a project, as outlined below:
a) Increasing the Equity Contribution Share in the Capital Structure: One of the ways of reducing the cost of finance is to increase your Equity Contribution share into the project, or into the Capital Structure. This way, you borrow less thereby reducing the overall cost of capital into the Project. This can be done by liquidating other assets whose overall returns or capital gain is much lower than the cost of borrowing.
b) Paying the Investor early, for Equity Finance: The other ways of reducing the cost of Finance into a Project is to pay the Investor early into the project, through the first proceed that comes from sales of the Real Estate Investment Product. This is done through a systematic Tier formula, whereby a considerable amount is paid to the Investor or Lender in tier one and two, through negotiated interests that much lower than if the proceeds were paid at the end of the project.
c) Seeking Equity Partners in Potential Buyers: Another way or reducing the cost of finance is to seek equity partners in potential buyers. These are Buyers that you negotiate with so that they can pay a bigger percentage of the price of the sale units in off plan or initial stage, but at a much discounted price, such that the partners benefit through lower price premium discounts while the developer benefit in equity capital.
d) Selling Off-Plan to reduce to Capital Deficit: Selling off-plan still remains a viable way of reducing the cost of finance. The idea is to break ground at the site when you have raised a considerable amount through off-plan sales of Units.
e) Avoiding High Risk Finance Instruments, like Mezzanine Financing: Another way of reducing the cost of finance is to seek cheaper equity and debt finance instruments, and avoiding expensive debt instruments like Mezzanine Finance. One way of doing this is to negotiate the entire debt fund through one Senior Debt Capital.
THE CONSULTANT TO ENGAGE:
The Consultant to engage for this exercise is a Project Finance Consultant.
F.) THIS WEEK ON FREQUENTLY ASKED QUESTIONS (FAQs), AND ANSWERS
QUESTION:
What are the structured real estate investment options, that do not require the purchase of land or property?
ANSWER:
Investment in Commercial Real Estate may either be in form of direct ownership of investments, or indirect investment by means of equity or debt securities. The equity or debt securities can provide above-average yields compared with other equity investments in the market, as well as provide a degree of protection against inflation. The indirect investments can also be an effective means of diversification in your investment portfolio.
The various indirect and structured investments available in the local and international markets, include:
a) REITS: These are the most commonly held type of real estate equity securities. A real estate investment trust (REIT) is an investment fund or security that invests in income-generating real estate properties. The fund is operated and owned by a company of shareholders who contribute money to invest in commercial properties, such as office and apartment buildings, warehouses, hospitals, shopping centers, student housing, and hotels. REITS provides a form of stable income stream in form of dividends for investors, as 90% or more of the profits are returned to them.
b) Private Equity Funds: Private equity funds allow investors to pool funds to invest in large projects such as apartment buildings or large commercial properties. In Private Equity Funds, investors don’t know the exact property they’re investing money toward, and they don’t secure partial ownership of the property. Instead, you invest based on the fund manager’s reputation; the manager has earned sizeable returns in the past, so you invest money with them under the belief that they’ll find outstanding investments that pay impressive returns. In other words, you simply have to trust them.
c) Mortgage Backed Securities: Mortgage-backed securities are the debt instruments that aid in real estate investing. In this format of investment, banks issue securities, in which a group of mortgages are clubbed together. Investors who buy these securities avail returns periodically. The components of this payment are net interest, net of mortgage servicing fees and a schedule of repayment of principal.
d) ETFs and Mutual Funds: One way to indirectly invest in real estate is by investing in stocks and funds in real estate-related industries. You can invest in ETFs and Mutual funds that hold home construction stocks, commercial real estate stocks, or hotel chains with wide real estate holdings. You can also invest in ETFs and mutual funds that hold a range of REITs (more on those momentarily). ETFs and mutual funds offer the same immediate liquidity as any other ETF, mutual fund, or stock.
e) Private Notes: A note is the legal document signed to record a debt. For practical purposes, a private note is a private loan from you to another person or company. Notes are “unsecured,” meaning there is no lien against a particular property as collateral. But private notes can also be secured, with a lien recorded on public record against a property serving as collateral. Private notes can generate excellent returns and are as reliable as the person or company you’re funding. They can also be secured against real property, allowing you to foreclose on the property in the event of a default.
f) Crownfunding Investment Vehicles: Crowdfunding is a way for people and businesses to raise money for Real Estate Investment Projects globally. It works through individuals or organisations who invest in crowdfunding projects in return for a potential profit or reward. Like the other options on this list, real estate crowdfunding websites allow investors to spread money across many properties and regions. There many types of crowd funding vehicles, which include: Investment-based crowd-funding, and loan based crowd funding.
g) ComingLed Fund and Aggregation Vehicles: This form or investment provides collective access to the investment through Real Estate Limited Partnerships. Investors contribute into the Vehicle, and Payouts are made in the same proportion as the investment to each investor. These funds can be close or open ended. Close ended funds have fixed closing dates. Post fund initiation, no new investors are allowed into the fund. No further reinvestments take place even as sales occur. Open ended funds accept new investors and reinvestments even after fund initiation.
G.) THIS WEEK ON DEVELOPMENT COSTS ANALYSIS – NGONG AREA, KAJIADO COUNTY
This week’s focus on Development Cost Analysis is for Ngong Area in Kajiado County, this being another fast growing satellite towns in the Metropolitan area of Nairobi. The Development type in this area according to the land-use and county zoning regulations includes Apartment Blocks, Maisonettes and Town House, Shopping and Retail Complex, and Warehouse and Godowns.
Below is an analysis of Construction Cost per Square Meter (SM), for the option of procuring the development project through a Building Contractor, or an option of direct procurement of the Materials and Labour through a Labour Contractor for recommended building types.
H.) THIS WEEK ON REAL ESTATE PRICE ANALYSIS – NGONG AREA, KAJIADO COUNTY.
The Real Estate price analysis focus for this week is on land, sale, and rental prices for a 2 and 3 bedroom apartment in Ngong Area – Kajiado County. The data were obtained through surveys, and analysis of asking prices on property listing in Nairobi.
i.) Sales price – Apartment
ii.) Rent price – Apartment
iii.) Land price per acre (commercial/residential)
I.) CENTRAL BANK OF KENYA INTEREST RATE WATCH – (T-BILLS)
The money market was liquid during the week ending June 04, supported by government payment. The average interbank rate declined to 3.14 percent on June 04 from 3.45 percent on May 28, with the excess reserve standing at KSh38.9 billion in relation to the 4.25 cash reserve requirement. Besides, open market operations remained active, and the interbank rates remained stable.
91 day T-bill declined by 0.01% from 7.33% previous week rate to 7.325%. CBK offered a total of Kshs4 billion, and bids amounted to Kshs10.221 billion, of which 4.253 was accepted. Volume on bids received increased week on week basis. 182 day T-bill declined by 0.05% from 8.248% previous week rate to 8.200%. CBK offered a total of Kshs10 billion, and bids amounted to Kshs21.304 billion, of which 8.86 was accepted. The 364 day T-bill declined by 0.03% from 9.198% previous week rate to 9.165%. CBK offered a total of Kshs10 billion, and bids amounted to Kshs18.650 billion, of which 4.668 was accepted.
J.) KENYA EQUITY MARKET INDICES
Trading activities increased significantly at the NSE with the NASI and NSE 25 share index gaining by 2.25 and 0.11, respectively, while the NSE 25 share index plummeted by 1.69 percent. Besides, the economic stimulus package released by President Kenyatta boosted the investors’ confidence as trading activities recorded an upward trend the week ended June 5, 2020. Furthermore, the total shares traded during the week gained by a margin of 58% to 22,488,400 million from the previous session 14,226,000 million, and the Market capitalization rose by 2.26 percent, indicating an appreciation in prices due to increased trading. However, the I-REIT turnover reduced to 231,736 from 836,626, while the number of I-REIT deals increased from 24 to 30 deals.
K.) KENYA CAPITAL MARKET ANALYSIS
During the week ended June 5, 2020, the capital market was on an upward trajectory with both the penny and the high dividend-paying stocks gaining traction among stock investors. Consequently, Britam, Safaricom, Equity, KPLC, and KCB were the most sought stocks during the week. Meanwhile, TCL Kenya, Kenya Airways, Standard Chartered Bank, Longhorn Publishers and East Africa Cables were the week’s top gainers with their stocks increasing by 9.21%, 6.53%, 6.27%, 5.69%, and 5.00% respectively. Nevertheless, the week’s top losers were Eveready East Africa Plc, ABSA group Plc, Nation Media group, NSE, and Total Kenya with their shares declining by 6.67%, 6.48%, 5.41%, 5.13%, and 4.56% respectively.
L.) CURRENCY HIGHLIGHTS
The Kenya Shilling strengthened against the U.S. Dollar during the week ending June 04, exchanging at KSh 106.124 per U.S. dollar compared to KSh 107.02 per U.S. dollar on May 28. Central Bank data shows that the country’s forex reserves remained adequate at 8,331 million (4.99 months of import cover) as of June 04. Besides, that meets the CBK statutory requirement to maintain at least four months of import cover and the region’s convergence criteria of 4.5 months of import cover.
M.) FACTORS THAT WILL SHAPE THE REAL ESTATE AND OTHER MARKETS IN THE NEXT ONE WEEK.
i) VAT Refunds
On May 30, KRA began paying out Sh 10 billion in VAT refunds, as was directed by the president. The week-long process was aimed at offering support to businesses hardest hit by the Covid-19 pandemic. As such, according to Commissioner for Domestic taxes, Elizabeth Meyo, only companies that had their refunds verified in line with the procedure, received payments. Consequently, in the next few weeks, experts’ projects that most businesses that receive the refund will have their cash flow improved; as a result enhancing liquidity in the economy. Besides, cash flow in the commercial real estate will be sustained, given that the refunds target mostly the hospitality sector. Moreover, the improvement of cash flow means that due payment of rent and pending bills will take effect, thereby sustaining real estate cash flow.
ii) The National Budget.
The Kenya National budget, which is set to be read on June 11, will shift Investment and business paradigms significantly in the coming week as Kenyans remain anticipatory of the budget. Besides, the budget is anticipated to include the economic stimulus package aimed at addressing the immediate cash flow needs as well as to provide a roadmap for the next phase of recovery post-coronavirus. Nevertheless, the 2020/2021 budget’s tone remains ‘business as usual’ despite the harsh economic environment the country is currently functioning in.
Meanwhile, the construction sector is one of the biggest winners in the amended budget for the current financial year after the National Treasury added to the Ministry of Transport, Infrastructure, and Housing and Urban Development Sh44.1 billion to reinforce the government roads and housing projects amid Covid-19 to create employment and to cushion SMEs from collapsing.
N.) UPCOMING REAL ESTATE EVENTS AND TRADE SHOWS IN THE NEXT ONE WEEK.
i.) Passive House 2020: Choose Your Future – An interactive online building conference
Date: June 12, 2020
Time: 0900 – 1800hrs EAT
Venue/Media: Online.
Event Organizer: https://matchboxvirtual.com/naphn-passive-house-2020/
2.) Webinar: Wiser broker; learn about smart online real estate office.
Date: 10 June, 2020
Time: 6:00 PM
Venue/Media: Online
Event Organizer: https://www.miamirealtors.com/education/online-education-and-webinars/
Writer of the Report:
This Report is written by Buildafrique Consulting Group, Kenya multi-disciplinary consultancy, that offers END-TO-END DEVELOPMENT CONSULTANCY, REAL ESTATE, and PROJECT FINANCE solutions through specialized subsidiaries. Among our solutions includes:
- Feasibility Studies and Market Research.
- Project Finance and Capital Raising.
- Project Management.
- Investment Design Appraisal.
- Quantity Surveying
- Construction Cost Consultancy
- Physical Planning and Planning Permissions
- Environmental Management and Impact Assessment
- Real Estate Development and Structured Investment Solutions
- Property Valuation
- Marketing and Property Sales Agency
- Property Management and Facility Management
Our Contacts:
- Office: Navigators, Kindaruma Road, Nairobi.
- Website: buildafrique.com
- Email: [email protected]
- Tel: +254 20 8058493 / Mobile: +254 722 474285
Disclaimer:
The information contained in this report is for general information purposes only. While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the information contained on the report for any purpose. Readers are therefore advised in all circumstances to seek the advice of Registered and Licensed professionals in all matters related to Real Estate Investment and Project Development.