ad 1

Wednesday, May 23, 2012

The Rise of Eastlands As Top Investment Hub

Eastlands is rising rapidly as a middle class residential area, as land and property prices move out of reach of entry-level buyers in most other areas of Nairobi, but remain easily accessible in the widening tracts of Eastlands now being opened by new public transport routes – and spawning the launch of projects such as Casa Mia, selling 3-bedroom houses at Sh5.25m that are expected to be worth 30 per cent more within one-and-a-half years.The latest Hass Index report on neighbourhood rents and property prices at the end of 2011 revealed Eastlands as an upcoming investment area, in sharp contrast to upmarket areas that are experiencing a decline in both rental price and property prices: with few middle-class Kenyans now able to reach their escalated prices.According to the fourth quarter 2011 report, rental prices in high end areas in and around Westlands, including Lower Kabete, Parklands, Spring Valley, Rosslyn, Gigiri, and Muthaiga, fell by up to 8 per cent last year, as tenants stretching to pay the high prices negotiated rental prices downwards.But the trend was exactly opposite in Eastlands, where rents in Buruburu, Donholm, Nyayo estate, Komarock, Tena, Imara and Daima all appreciated by up to 9 per cent over the same period, as tenants who had been living in high end areas shifted to cheaper homes in Eastlands as a way of cutting household expenses.Likewise, the selling price for houses in Brookside and Westlands declined by 5 per cent, the biggest dip experienced in Nairobi during 2011, while eastlands prices rose by up to 9 per cent. This was despite Westlands benefiting from reduced traffic congestion on the expansion of University Way and opening of the Northern Bypass.With average house prices in the inner Westlands areas running at Sh20m, compared with Sh5m in Eastlands, the appeal of more space in self-standing houses and villas in Eastlands began driving a new rush into the area that was further fuelled by reduced travel times.The area, which was for many years snubbed by investors due to traffic congestion and poor housing, now boasts an efficient railway commuter system running from Nairobi Railway station to Embakasi Village that has cut down travel time for residents by up to 75 per cent, while easing road pressure and allowing motorists to get to CBD more quickly.According to Meg Otieno, a Donholm resident, “It used to take me one and a half to two hours to get into town, but since the introduction of the railway system it now take me as little as 15 minutes to get to work.”For motorists, the government is also this month completing the Sh. 8.5bn Eastern bypass, which starts on the Ruiru-Kiambu road crossing to Ruai, then to Kangundo Road before proceeding to Mombasa Road via Embakasi, in a move that will further reduce travel time for motorists by up to 70 per cent. A 25 km special road dedicated to buses plying the JKIA – Nairobi CBD route to reduce pressure on roads is also in expected to be developed in the Nairobi Metropolitan Region Rapid Bus Transit system in the next four years.“The improved transport system and ongoing works have positioned Eastlands as a commercial and residential powerhouse and has also created a demand for quality housing with adequate open space for children to play as more residents settle in the area,” said Sakina Hassanali of Hass Consult.Private developers and various corporates are now further fueling Eastlands’ commercial growth, with the development of two malls that have in the last year been flocked by banks and businesses. The area now has 8 bank branches, 5 major supermarkets, 2 malls and is home to numerous private enterprises.This has seen HassConsult now mark out the area as one of Nairobi’s best residential investment, for current returns and yields.It forecasts that developments, such as Casa Mia, which is located 15 minutes from the Kangundo Road junction with the Eastern Bypass and is within 45 minutes reach of the CBD and less than 30 minutes from Jomo Kenyatta Airport, will now experience further sharp price gains.The development also represents a new kind of mid-income property. “The homes have been designed for upcoming professionals with young families who want a nice first home in a beautiful environment that their children can grow in, at a viable entry price of Sh5.25m,” said Ms Hassanali.Each 3 bedroom house measures 915 sq.ft and is built on approximately 1/12th of acre.Do you believe that Eastlands is replacing Westlands as a top place to invest in?

No comments:

Post a Comment