Thika: The ‘Next Big Thing’ in Property

Daily Nation, Thursday, September 19, 2013 · 

Thanks to the super highway that has made access to Thika and it’s environs much easier, there has been increased demand in houses that has peaked developers interests.

Currently, upcoming residential developments include Tatu City, Suraya Four Way Junction, Oak Valley Development, Thika Greens, Juja South Estate, Garden City, Migaa, and Golden Mile Park.

Within Thika town are Buffalo Hills, Chania Gardens, Thika Greens, Castle Park, Leisure Village, and Bahati Ridge.

Chris Gachiengu, the developer of Chania Gardens, which is less than two kilometres from Thika town, says the completion of the super highway, has made property in this area a must-have.

“We decided to come up with a project that would tap into the rapidly developing and growing town of Thika, which is now served by a super highway from Nairobi, making it close enough to commute daily, yet feel serene enough from the congestion and hustle and bustle of Nairobi,” says Gachiengu.

With the completion of the Thika highway, the total travel time has been shortened to about 30 minutes from Nairobi to Juja, and 10 minutes to Thika.
With the current competitive nature in the real estate market, Gachiengu believes that his project will be affordable, especially given the amenities that it will provide.

CHANGED LANDSCAPE
“Our current asking price is Sh8.5 million that represents excellent value in the current market for a three-bedroom semi-detached maisonette with servant’s quarters,” he says.

Sitting 15km shy of Thika town, the price of land in Juja has also gone up substantially.

Formerly dotted with coffee plantations, the landscape in Juja has changed.

Patricia Githu, a director at Developing Africa, the developers of Juja South Estate, says that the main attraction for property investment in the area is the availability of amenities, the Thika highway, and the type of developments for sale.

“The Juja South estate that we are building is targeting the middle to high-income earners and once it is done, it will be a trendsetter for gated estates within the area,” she shares.

Juja South Estate comprise 154 two-bedroom apartments, 22 three-bedroom penthouses, 40 three-bedroom townhouses, and 41 four-bedroom townhouses.

The prices ranges from Sh6 million for a two-bedroom apartment, Sh8.8 million for a three-bedroom penthouse, Sh11.5 million for a three-bedroom semi-detached townhouse, and Sh12 million for a four-bedroom townhouse.

“It is highly expected that there will be growth in both commercial and retail services in the town targeted at residents of this and other developments like this are coming up.

We have also tailored an efficient model where they can pay a deposit and make monthly repayments as the development progresses,” Says Gachiengo.

RISE IN PROPERTY VALUE

So far most of these developments are having an impressive uptake, with Gachiengu revealing that the response has been good.

“The first phase is now complete with 75 per cent of the units sold and the new home owners are currently in the process of occupying their homes.

The second phase of this project is on its take off stage. We expect that the Chania Gardens estate change the real estate in this area as this project is set to set the bench mark for housing projects within Thika,” he adds.

Property trends indicate that areas immediately surrounding Nairobi have seen a rise in property value.

Commercial plots cost anywhere between Sh2 and Sh4 million per eighth of an acre.

This means a commercial use acre of land in such an area costs between Sh16 million to almost Sh32 million.

“Property values in the said areas have in some instances witnesses 1000 per cent increment with land owners capitalising on the expected demand when the surrounding areas opens up,” says Alex Muema, of Ndatani Limited, a land selling company.

Muema says that the price of land in Juja alone has multiplied five times from their asking rice three years ago.

A 40×80 prime fully serviced plot next are going for between Sh1.5 million and Sh2 million depending on the proximity to the highway yet in 2010, they were going for around Sh500,000.