Real estate investment in Kenya during an election year.

May 19th, 2022

Investors in real estate have in the past years frozen their projects during election years since the polls often tear the country apart leading to wanton destruction of property, loss of lives and a tattered economy.

The script may be the same this year for a sector that had started its recovery from the Intensive Care Unit (ICU), High Dependency Unit (HDU) and general ward during the Covid pandemic before the political campaigns struck.

The upcoming polls have caused jitters leading to uncertainties that have left some prospective investors anxious. The high cost of construction materials attributed to the Russia/Ukraine war makes matters worse. It would therefore make sense to some investors to hold on to their money and wait for a more predictable economy.

However, this year is pretty different compared to other past election years. A time like this a number of people would be thinking of going back to their tribal cocoons. This is not happening partly supported by the fact that political leaders are uniting us through discussions on economic and social issues, projecting a more stable housing market, on rising economic growth trends. The shift of focus in politics to economic and social protection will go along in easing uncertainty in the housing market this election year.

So what way for real estate investors?

Some experts say that the upcoming polls mainly cause a threat to off-plan buyers with projects in the initial stages of construction compared to purchasing a complete house. It may be wise to consider investing in either a complete or near-complete house in the run-up to the elections to benefit from the upside once the economy stabilizes.

If you intend on buying, perform due diligence to know if what you are buying is legit, do background checks and find out whether the seller is tax compliant and has the right documents.

This is to avoid getting caught by fly by night companies; today they are there, tomorrow they’re gone. Look for companies that have been around for 5–10 years and have done successful projects because they have a reputation to maintain.