President Uhuru Kenyatta is set to reduce rent prices in four Nairobi estates by introducing low cost housing in the areas, which is part of his Big Four agenda.
According to realtors, the president's planned construction of 30,000 housing units will greatly reduce rent prices in Shauri Moyo, Makongeni, Starehe and Park Road estates.
Shauri Moyo is earmarked to receive 5,000 new homes, Makongeni will have 20,000 units and Starehe will receive 3,000 before October 2018.
State House Spokesman Manoah Esipisu conveyed that the ground breaking for the scheduled 2,000 units at Park Road estate will take place within the next three months.
[caption caption="State House spokesman Manoah Esipisu"]
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A long term plan to assign 7,000 acres of public land to private developers is also at play.
Some of the private realtors who spoke to Business Daily outlined that President Kenyatta's plan is workable lauding it for its econimic value.
"Land in Nairobi contributes a significant portion of the unit cost of a house and offering developers of affordable housing free land, makes real the likelihood of prices easing on the apartment market," HassConsult research and marketing manager Sakina Hassanali explained.
Cytonn Investments senior manager for regional markets Johnson Denge added that the 30,000 new units would cause the revision of cost of housing.
"There are some markets that are charging unnecessarily higher. There will be a correction of rentals.
"These houses will dignify the dwellings of these people who live in the informal settlements yet are paying rentals that are for a dignified place," he noted.
Currents statistics indicate that six out of every 10 Nairobi residents live in informal segments while the current deficit for housing in Nairobi stands at 1.85 million units.
[caption caption="Sakina Hassanali of HassConsult"]
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