fbpx
Blog

THE NEW HAVEN FOR REAL ESTATE INVESTMENT

Jun 01st, 2021

“There’s high demand for low middle-income housing in far-flung Nairobi’s metropolis as tenants opt for cheaper units in the wake of the prevailing high cost of living and uncertainty in the economic environment,” said realtor Hass Consult in its third quarter report for 2019.As a result, many residents have been pushed to live outside the city for cheaper rents.

Of key interest in these satellite towns is Athi River, a burgeoning industrial town about 25 kilometers south of Nairobi.

The area has witnessed improved infrastructure ranging from expansion of Mombasa Road, construction of the Athi River interchange and construction of the Standard Gauge Railway (SGR) and Athi River Super Bridge which has eased access to the town. The area hosts several companies making it ideal for every investor who wishes to put up commercial, residential houses for employees in the factories or a business premise to cater for this population.

According to Cytonn real estate the following are the factors Boosting Real Estate Investments in Athi River.

  1. Availability of development land - Athi River has adequate land to facilitate development unlike most suburbs in the city, where development land is in low supply, leading to congestion. The availability of development land has led to many gated communities coming up in Athi River such as Everest Park.
  2. Relatively affordable land – Land in Athi River is cheaper as compared to other Satellite Towns with the price of an acre averaging at Ksh 16M against an average of Ksh 87M in other satellite Towns such as Ruaka.
  3. Improving infrastructure – Athi River has witnessed improved infrastructure ranging from expansion of Mombasa Road, construction of the Athi River interchange and the construction of the SGR and Athi River Super Bridge currently underway which has eased access to the town.
  4. Industrialization – Predominantly an industrial zone, Athi River hosts several companies in the cement, mining and steel industries which has resulted in an influx in population and consequently housing developments to host them and retail facilities for their convenience with one of them being Crystal Rivers Mall by Safaricom Pension Staff Scheme.
  5. Beautiful views – Located near the Lukenya Hills, Athi River has beautiful views of the Hills and a serene environment making it an attractive destination especially for clients interested in serenity but with a desire to live in close proximity to the Nairobi CBD.

Cytonn’s real estate annual markets review for 2019 indicated that Athi River was one of the best performing areas with high total returns for investors.

”Athi River was the best performing satellite city overall with average total returns to investors of 7.1 per cent, evidenced by the relatively high uptake of 20.7 per cent in comparison to the market average of 19.3 per cent,” the report said.

To find out the best investment development in Athi river with returns upwards of 17%, click here.