If you have been following keenly on the Real Estate trends in the country, you must have noticed the risen demand in Real Estate investment in Laikipia specifically in it’s HQ, Nanyuki. This will leave any real estate investor wondering what’s led to this surge in demand.
Over the last five years, the town has witnessed increased real estate activities driven majorly by tourism. Situated on the edge of Nyeri, Meru and Laikipia counties, Nanyuki has emerged as a favorite spot for weekend getaways, hiking and mountain climbing expeditions, wedding destinations and Game drives.
Being one of the leading Real Estate companies in the region for close to 10years, we can attribute this demand on a couple of factors.
1. Growth in Rental Units Demand
Nanyuki is the area to head to in the Mount Kenya region for you, if you are looking for Great returns in rental yields. The Nanyuki real estate market recorded an average rental yield of 4.7 percent for the residential sector, 7.6 percent in the commercial sector and a capital appreciation of 4.7 percent in the land sector.
This is compared to the Nyeri market average of 5.1 percent, 6.3 percent, and 19.1 percent, respectively as recorded in a recent article on the Standard News paper. This goes to show that the town is growing in the rental sector faster than its neighboring towns making it a more attractive investment hub.
2. Growth of Economic Activity in the Town
Growth of Small and Medium Enterprises (SMEs) has also been cited as a reason for the positive real estate outlook. The informal sector is estimated to constitute 98 per cent of business in Kenya, contributing to 83.4 percent of jobs as per the 2018 Kenya National Bureau of Statistics Economic Survey.
Growth of Small and Medium Enterprises (SMEs) is estimated to constitute 98% of business in Kenya, contributing to 83.4% of jobs as per the 2018 KNBS Economic Survey. The Town has experienced an increase in the number of SME’S due to ease in business registration that takes a maximum of 2 weeks.
Nanyuki hosts several of these companies such as Mawingu Networks, all Major Banks and SACCO’S, BAT, KNIGHT FRANK, DAVIS & SHIRTLIFF, CMC and TOYOTA that require office space and housing for the employees, hence driving the demand for real estate.
3. Growth in Infrastructure
The upgrading of the Great North Road to a dual carriageway between Kenol and Marua, and the revival of the old meter-gauge railway line from Nairobi to Nanyuki will further boost growth in the two.
The road expansion is expected to reduce the current commute time from three hours to one and half hours which will make it closer to the capital, Nairobi, leading to ease in transportation of goods to and fro the region.
Real estate experts project that the rapid development of the town that hosts Laikipia County headquarters and its metropolitan nature could effectively steal the thunder from the neighboring Nyeri town, formerly the Central Provincial headquarters.
4. Tourism Hot Spot
Nanyuki hosts key tourist attractions such as the Ol Pejeta Conservancy,Ol Jogi Wildlife Conservancy, Segera Ranch, Lolldaiga Hills Ranch and Conservancy and Mount Kenya National Park making it a major tourist circuit of Mt. Kenya and the Northern Region, enhancing demand for hospitality services which continues to promote the hospitality sector
Decentralization has opened up major towns across the 47 counties attracting government institutions, private investors and entrepreneurs across all the county headquarters. This has increased the urbanization rate, hence attracting financial institutions such as Major Bank and SACCO’S, to the county level to tap into the unbanked population. The positive demographics, attributable to devolution have thus created demand for office space, retail space and residential units to host investors and government officials.
6. Foreign Army Training Hub
The town hosts the British Army Training Grounds(BATUK) and the USA Army is currently setting up their Training grounds in the Region. The presence of the two has resulted in a growing demand for housing by the army officers mainly hosting their families in the town.
7. Demand in Holiday Homes
Nanyuki hosts key tourist attractions making the town a major tourist destination in the Mt. Kenya and the Northern Region. This has continued to create demand for hospitality services and facilities, thus the development of holiday homes such as Maiyan Homes and the Mt. Kenya Wildlife Estates not forgetting AIRBNB’S that are generally hosted by locals as a more affordable option for tourists on a budget.
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