A property listed by a real estate company as the most expensive in Kenya has elicited debate online, with reviews centring around its market value, design and listing.
A video of the Ksh600 million Runda mansion was shared by the real estate firm, with its snippets shared online forming the conversation.
Questions were raised on the price of the house, with a section of Kenyans wondering why real estate properties in the country are more expensive than in other African nations.
According to the company listing the property in Runda, the Ksh600 million is just the asking price. Nonetheless, the value of the land was the focal point of the debate. The realtor indicated that the parcel was valued at a paltry Ksh100,000.
The difference in the prices made Kenyans argue that the house was overpriced, with some noting that a similar property in South Africa would sell at a lesser price.
A report by Arcadis, a leading global design and consultancy organisation for natural and built assets, however, indicates that South Africa's Johannesburg is the most expensive city in Africa.
The report titled The 2019 International Construction Costs – Smart Decisions Crating Long Term Value ranked cities based on; cost of living, cost of labour and cost of materials, and quality and complexity of projects.
Inside, the prices of real estate projects in South Africa were higher than in Kenya. This, in turn, fact checks claims raised by Kenyans debating the Ksh600 million Runda mansion.
Arcadis further indicated that Kenya’s growth in construction industry value will hit eight per cent this year, the fourth-fastest increase in the world after Iceland, Qatar and the Philippines.
A report by Knight Frank also indicated that Nairobi ranked 32 from 33 in the top 45 global cities that posted growth in 2021. Kenya was the only city in Africa included in the top 45 countries.
The Prime Global Cities Index by Knight Frank released on May 17, 2022, indicated that Nairobi recorded a 2.4 per cent increase in prices over a six-month period between the third quarter of 2021 and the first quarter.
In a previous interview with the People Daily, Architect Mugure Njendu, President of the Architectural Association of Kenya (AAK) explained that the prices of houses in Nairobi are high due to the exorbitant land prices.
He pointed out that investors have to sell the property at a higher cost to cover losses. If the economy fails to perform, the resulting slump impacts the property market.
Pam Golding Properties Kenya MD Kunaal Samani in an interview stated that luxury properties in areas such as Muthaiga, Runda, Kitisuru, Spring Valley, Loresho, Lower Kabete and the new ‘Muthaiga of the South’ – Karen, are highly sought after.
Samani stated that the middle-class prefers areas such as Lavington, Westlands, Parklands and Kileleshwa due to their proximity to the commercial districts, schools and social amenities.
