How much do you earn? You can afford a house here...

Housing in Kenya is enjoying a boom and with the current intervention by private developers and the government to provide quality housing for the middle and low-income residents, there is something for everyone. However, the money you earn dictates the kind of house or neighbourhood you will live in. 

By IMMACULATE WAIRIMU immawairimu@yahoo.com
Posted  Thursday, April 25   2013 at  01:00

IN SUMMARY

• A number of standalone houses are coming up in areas like Kitisuru, Nyari, and Muthaiga, which are situated in hilly landscapes with expansive, often sloping gardens. Demand for such up-market homes is high and recorded the world’s highest rental price increase last year, according to international property consultancy group Knight Frank.

More people live in towns today than in rural areas and, as a result, city populations continue to grow at unprecedented rates.

“The biggest percentage of the Kenyan population lives in urban areas, but 80 per cent do not own the homes they occupy in the city,” says Nathan Luesby, the managing director of Jenga Web Ltd.

Housing in Kenya is enjoying a boom and with the current intervention by private developers and the government to provide quality housing for the middle and low-income residents, there is something for everyone. However, the money you earn dictates the kind of house or neighbourhood you will live in.

Hass Consult’s property index report for the first quarter of 2013, released on April 17, indicated that the salary required to acquire a standalone house, averagely priced at Sh34.9 million, would be in the region of Sh581,650 and above per month.

This amount would make one afford the 20 per cent deposit of Sh6,980,000 saved over a period of five years for such a property, at yearly savings of Sh1,395,960.

The required monthly salary for easy acquisition of a townhouse worth Sh19 million would be around Sh316,650. The property owner would be required to pay a 20 per cent deposit of Sh3.8 million, saved over five years at a rate of Sh759,960 a year.

A number of standalone houses are coming up in areas like Kitisuru, Nyari, and Muthaiga, which are situated in hilly landscapes with expansive, often sloping gardens. Demand for such up-market homes is high and recorded the world’s highest rental price increase last year, according to international property consultancy group Knight Frank.

Rents in this segment, which comprises about five per cent of the mainstream housing market, rose 17.9 per cent in 2012, the world’s highest price change for the second year in a row.

“We have very low vacancy levels and even have waiting lists for particular houses,” said Knight Frank Kenya’s managing director Ben Woodhams. “The level of lettings in this segment is something that has not been seen before.”

The demand, he says, is being fuelled by multinationals establishing regional offices in Nairobi, subsequently deploying more high-level expatriates to the city.

But there is a catch. You can only afford such housing if you earn a monthly salary of Sh1 million or above, which is enough for a 20 per cent deposit on a property worth Sh70 million.

The Hass Consult fourth quarter report for 2011 indicated a three per cent rise in the average sale price of houses in Muthaiga, from Sh63.3 million to Sh65 million in the fourth quarter of 2012.

The quarter four 2012 report for Kitisuru was Sh50.5 million, a five per cent rise from 2011’s Sh47.9 million.

Property in Nyari was selling at Sh45.2 million in the fourth quarter of 2011 and rose to Sh49.1 million in the fourth quarter of 2012, a nine per cent increase in value. The first quarter of 2013 has seen a rise in value of standalone houses 3.97 times since 2001, a 1.2 per cent rise in the past quarter, and a 9.9 rise in the past year.

 Rosslyn, Runda, and Karen are other urban havens with premier housing and culturally diverse communities characterised by serene settings. Karen is a green and lush suburb southwest of the city centre that boasts fine villas with extensive gardens. It is surrounded by malls, hospitals, schools, and restaurants.

Rosslyn, carved from former coffee plantations, is green and lush with ample lawns and fresh air. It is secure, with the streets patrolled by private security guards and close to the United Nation’s complex and the United States and Canadian embassies. Anyone wishing to enjoy such opulence has to bank a monthly salary of Sh750,000 to afford a home here, at a cost of Sh52 million.

Hass Consult also reports that other locations with such suburban opulence and homes in the same price range are Gigiri, Kyuna, Spring Valley, Brookside, and Muthaiga North. The average asking price here was between Sh31.8 million and Sh43.5 million.

If you earn a monthly salary in the range of Sh500,000, you can afford town houses in Lavington, Riverside, or Ridgeways. Riverside is a high-end residential area with large houses and expansive gardens, exclusive office buildings, and embassies. In the past few years, numerous apartment buildings have come up in this area. Located between Lavington, and Westlands, it has good access to the Nairobi city centre.Ridgeways is also an upmarket neighbourhood, home to Nakumatt Ridgeways supermarket. It is accessible via Kiambu Road or Thika Road.

Lavington is a popular residential area of Nairobi because of its location, with easy access to the city centre, Westlands, Karen, and Lang’ata. Property in these areas is valued at Sh35 million.

With a monthly salary of Sh400,000, you can afford luxury apartments in Westlands or a house in Nyali, Mombasa. Nyali is an upmarket residential area situated across Nyali Bridge, a few kilometres from Mombasa town. Large villas with lush gardens, maisonettes, and smaller townhouses are available here. A white sandy beach stretches northward, with the Nyali Golf and Country Club nearby.

Apartment units in Nairobi worth Sh12.3 million will require a 20 per cent deposit of Sh2,460,000 saved over a period of five years. This will require Sh205,000 of your salary.

A first home averagely priced at Sh6 million would require you to have a monthly salary of at least Sh100,000. You would be required  to pay a 20 per cent deposit of Sh1.2 million saved over five years.

A salary of Sh16,667 per month will enable you to get a loan to buy a plot worth Sh1 million. You will need to pay a 20 per cent deposit or Sh200,000.

An income of between Sh300,000 and Sh200,000 will enable you to buy a standalone house in areas like Redhill, Tigoni, and Athi River, an apartment in Kilimani, or a townhouse in Kiambu. T

hese houses are valued at between Sh14 million and Sh21 million. Redhill and Tigoni are located in Limuru and are predominantly high-cost communities in landscapes that are serene, gently sloping, cool lands with undisturbed environments. They boast spectacular views, including those of the Ngong Hills.

The recent completion of the Northern Bypass up to Ruaka town from Mombasa Road through Thika Road makes it easy for residents to move in and out without having to endure the central business district traffic.

Kilimani consists of upper middle-income flats and apartments, maisonettes, and office blocks. The Kenya National Bureau of Statistics defines middle-income households as those whose monthly incomes fall between Sh23,671 and Sh112,717.

Townhouses in Juja along Thika road or apartments in Embakasi, 15 km east of the central business district and home to residential and commercial buildings, will be affordable to those earning a salary of Sh100,000. This will enable one to acquire property in the range of Sh7 million.

Apartments in Mlolongo and Ongata Rongai and houses in Ruai are attainable with a salary range of Sh75,000. They cost an average Sh5.2 million.

Mlolongo is an upcoming suburban area with roads leading to Syokimau and Katani, which are considered to have the potential to grow into high-end neighbourhoods, thanks to infrastructure planning.

Ongata Rongai, situated 17km south of Nairobi, is home to middle to lower income residents. It has access to supermarkets, clinics, schools, and universities. Ruai is a mix of bungalows, maisonettes, and apartment buildings with expansive gardens and scenic beauty.

Small apartments in Komarock or Kitengela will be affordable for a person earning a monthly salary of Sh50,000 for a property worth Sh3.5 million. Komarock is largely a middle-income residential area with modern architecture. A Sh25,000 monthly salary can enable one to buy a bedsitter on Mbagathi Way or a small plot in the outskirts of Nairobi worth Sh1.7 million.

A 20 per cent salary saving for five years, including six per cent interest, will amount to Sh350,594, concludes the report
.