The easiest form of real estate investment in Kenya is through buying land and letting it appreciate. Kenyan laws allow for this unlike USA, South Africa, Europe or Asian laws which somehow discourage investment through speculation by taxing such profits.
With land laws encouraging this, land in Kenya around urban centers has become scarce and in very high demand, with appreciation rates at a minimum of 20% per annum. Vacant land appreciates faster than built up land, hence a better option to invest in vacant land.
Since land is a finite resource, the more the population increases, the more the demand for land hence higher prices.
The minimum sub-divisible land in Kenya is 1/8th acre or 50 ft by 100ft plot size. This creates a situation whereby investors willing to invest in smaller lands are locked out.
To resolve this, we have come up with a solution whereby we work with land owners to enable subdivisions of less than 1/8th acres through sectional property laws.
The process is simple.
1. Land owners approach a4architect.com for subdivision.
2. a4architect.com carries out feasibility to determine viability and best land plot size.
3. a4architect.com comes up with a master plan for the subdivision similar to as below built up projects.
The design is done such that all buyers adhere to the same style to create an organised harmony in terms of colour scheme, materials, size, height, shape of the houses. This is managed through the lease agreements with the new owners whereby they all sign and agree to abide to the set rules regarding their buildings.
4. a4architect.com gets county planning department approvals and works with conveyancing lawyers to come up with sectional title documents or sub leases for the plots.
5. land owner can then embark on selling the plots as sub leases or sectional property titles.
With the above process, the land owner will have a chance to double his profits compared to when land is sold in 50 ft by 100 ft portions.
The land owner can also opt to develop some units then sell and gain from more profit.
Architect Francis Gichuhi Kamau.