Lamudi Kenya Magazine

1Lamudi | April - June 2016
RESEARCH &
DEVELOPMENT
As Kenya enter's the middle
income economic status, we
expound on how this has impacted
the Real Estate Market in our
annual whitepaper report.
DEVELOPERS
DIGEST
From the finest residential units in
Kitengela to architectural
masterpieces in Kilimani...
INVESTOR
SHOWCASE
We expound on why 2016 is the best
time for both local and foreign
investors to grab a share of the
Kenyan real estate pie.
LEGAL
Property valuation serves as one the
biggest conundrums before any
property investment.
KENYA’S BEST REAL ESTATE MARKETPLACE
APRIL - JUNE 2016FREE COPY

05News
The first quarter of 2016 has
been good. We’ve received
new funding both globally and
regionally further establishing
our industry footprint.
17Ideas Bank
Planning to venture to the Real
Estate Market? Looking for
a new place to call home or
better yet what colors suit your
new place? We give you an in
depth analysis on this and also
share some views and ideas
from industry experts.
24Investor showcase
We expound on why 2016 is
the best time for both local and
foreign investors to grab a share
of the Kenyan real estate pie.
12Research and Development
Kenya, the economic hub of East
Africa, entered into middle-
income status after its economy
was rebased in 2015. We expound
on how this has impacted the
Real Estate Market in our annual
whitepaper report.
18Developers Digest
From the finest residential units
to architectural masterpieces,
we interview some of the
industry’s finest developers,
discussing their journey,
discovery and establishments.
28Legal
Property valuation serves as
one the biggest conundrums
before any property investment.
What are some of the factors
that influence valuation? Hear
from the experts!
CONTENT

4 Lamudi | April - June 2016
Managing Director
Dan Karua
Sales & Advertising
Kilonzo Kivuitu, Cynthia
Nyamwathi, Yvonne Malebe,
Patricia Mulehi, Njeri Kiunjuri,
Fredrick Ogamba, Susan Mutua
Photography
Kings Missions Photography
Creative Director
Paul Wanjoeh
It’s a truth almost universally acknowledged that
Kenya’s property market has got the highest returns
in investments better than anywhere in Africa. Kenya
has improved 28 positions in the World Bank’s ease of
doing business index in the last couple of years helped
by reforms in business and property registration. This
ranking reflects the Kenya’s appeal as a magnet for
capital, businesses, and talent. With Kenya already on
the path towards a devolved government, the demand
for residential, commercial and industrial property can
only rise. In our 3rd Issue, we disembowel the state of
real estate in Kenya, 2014 vs 2015 trends and how that
will affect the market in 2016. Enjoy!
Ian Mwaura
Editor in Chief

Lamudi’s parent company, Africa Internet Group (“AIG”), a
leading e-commerce group in Africa, and AXA, a worldwide
leader in insurance and asset management, today announced
a partnership whereby AXA will become the exclusive provider
of insurance products and services through Lamudi and other
AIG online and mobile platforms in Africa. Going forward, AXA’s
African insurance companies plan to propose custom-made
insurance products to Lamudi and AIG’s e-commerce client
base through its ecosystem of marketplaces and classifieds
services. As part of the partnership, AXA will also become a
shareholder of AIG, along with MTN, Rocket Internet and
Millicom.
AXA and Lamudi view Africa as a fast developing market for
financial services and insurance products, benefitting from
strong fundamentals such as low penetration rates, rise in
middle class, urbanization as well as the youth of its population.
“Internet is creating unparalleled opportunities for consumers
and businesses in Africa to connect and do business in a
new way. We continue to be very excited about the growth
prospects of Lamudi and this new partnership will enable us
to capture them,” said Sacha Poignonnec and Jeremy Hodara,
founders and co-CEOs of Lamudi and AIG. “We expect Africa’s
e-commerce and online businesses to develop rapidly as a
result of the strong growth of the middle class coupled with the
increasing mobile phone and internet penetration. With Rocket
Internet’s extensive background in online business models,
MTN as leading mobile carrier with its broad African presence,
and now the partnership with AXA in insurance products and
services, we are in a great position to continue to innovate and
connect businesses to the fast growing consumer demand.”
“This transaction confirms AXA’s long-term commitment
towards the African markets and represents another step in
our development on the continent. Africa is home to some of
the most dynamic and promising insurance markets in the
world and our partnership with Africa Internet Group will
enable us to accelerate materially our development by having
access to their rich customer base and to their state-of-the-
art e-commerce technology. Going forward, we aim to enable
African consumers to better access insurance solutions to
create sustainable financial well-being throughout their lives
and those of their dependants”, added Denis Duverne, Deputy
CEO of AXA.
As a result of the transaction, AXA will invest Euro 75 million
and own approximately 8% of the capital of AIG. Completion
of the transaction is subject to customary closing conditions,
including the closing of the previous investment round, and is
expected to take place in the first quarter of 2016
The additional capital contributed by AXA will further
strengthen the balance sheet and support AIG’s continued
growth. Lamudi, AIG’s main subsidiary, is currently present in
21 African markets and grew its transaction volume (GMV) by
265% during first 9 months of 2014 to reach Euro 206 million.
LamudiKenyaispartofbroaderecosystemofservicesproviding
marketing opportunities for real estate agents and developers
to do business with the fast-growing Kenyan consumers and
mass market. Other services include Kaymu, a leading online
shopping community, as well as leading marketplaces in food
delivery (Hellofood), travel (Jovago) and leading e-commerce
platform (Jumia), jobs (Everjobs) and cars (Carmudi).
AIG AT ONE BILLION DOLLARS
NEW LAMUDI PARTNERSHIP VALUES
PARENT COMPANY

The property boom and devolution of services to rural areas
have made it easier for retailers to take up prime locations
near residential areas for customer convenience.
Kenya’s retail market has taken the number one spot in mall
development in sub-Saharan Africa. According to Knight
Frank’s Shop Africa 2016 report, Nairobi stands out as a major
focus for shopping centre development, and is ranked as the
largest market by existing shopping centre floor space. It also
has the biggest mall developments in the pipeline, among the
cities covered by the report, namely Accra, Lagos, Lusaka,
Luanda, Kampala, Maputo, and Dar-es Salaam, although it
excludes South Africa, which has a large and mature shopping
centre market. With Africa’s property markets attracting
increased interest from regional and international investors,
the retail sector has become a major focus for development.
The report estimates that the 47 countries covered by the study
have a combined three million square metres of shopping
centre space in malls, with a minimum size of 5,000 square
metres gross leasable area (GLA). This also includes older and
poorer quality centres alongside the more recently developed
malls.
Given that South Africa alone is estimated to have about 23
million square metres of shopping centre space — which
is more than seven times the rest of Sub-Saharan Africa
— there would appear to be room for considerable further
retail development across the region. At present, the largest
shopping centre market is Nairobi, with nearly 400,000 square
metre of shopping centre space, the report states.
According to London-based market research company,
Euromonitor International, the growing property boom and
devolution of services to rural areas have made it easier for
retailers to take up prime locations near residential areas for
customer convenience. This has the expansion of retail outlets
nationwide.
Improved infrastructure, lower transport costs for businesses
and a rising middle class with high disposable incomes were
key in promoting retail growth. Backed by increasing foreign
investment, stable political leadership, as well as a growing
focus on the development of youth entrepreneurship, the
Kenyan economy has also continued to grow. Its strong GDP
forecast of 6.5 per cent for 2015, as well as inflation remaining
at a single-digit level of 5 per cent, contributed to growth in the
PROJECTS IN SUB-SAHARAN
AFRICA
NAIROBI LEADS IN SHOPPING CENTRE

retail sector in 2015.
Shopping complexes have been a feature of Nairobi since
the 1980s, when the Sarit Centre, regarded as the city’s first
formal mall, opened. In subsequent decades, Nairobi’s retail
landscape has been populated by other successful schemes
such as Yaya Centre, The Village Market and The Junction.
New Standards in Size and Quality
However, the current wave of development is creating modern
malls that are setting new standards in size and quality within
the market, says the report.
The 33,000-square metre GLA at Garden City Mall is currently
the most prominent, as it introduced the first phase of mixed-
use development in the Kenyan real estate market in 2015.
Developed by private equity firm Actis, which invests
exclusively in Africa, Asia and Latin America, Garden City
Mall incorporates residential house, offices and a hotel. It is
expected to be completed in 2017, by which time it will have
been expanded to 50,000 square metres.
In the pipeline is the keenly awaited Two Rivers Mall being
developed by Centum, which is expected to open this year. The
62,000-square metre mall will be delivered is the first phase
of a major mixed-use scheme being built on a 100 acre site on
Limuru Road.
Another key project expected to begin operating this year is
The Hub, which will be constructed in the upmarket Karen
neighbourhood. It will have 30,000 square metre of retail space,
and is being developed by Azalea Holdings, a consortium of
local investors.
Reflecting a trend being e elsewhere in Africa, there is growing
interest in the market from South African investors. Other
developers and landlords of these shopping centres are local
Kenyan property owners, the report states.
According to the report, these malls have leased well and
the rents that they have achieved compare favourably with
the city’s more established centres. Among the new projects,
there is a clear trend towards mixed-use, rather than pure
retail development as office, residential and leisure facilities
have been incorporated into schemes. In the face of increased
competition from Nairobi’s new malls, some of the city’s
established centres are in the process of expanding or
refurbishing as they seek to protect their market share. Sarit
Centre, for instance, is an additional 23,000 square metres of
retail space.
The Kenyan retail market is still dominated by local operators,
despite growing interest among international chains.
The market leader is Nakumatt, which has more than 20
supermarkets in Nairobi, with other major players being
Tuskys, Naivas and Uchumi. Largely due to the strength of the
local competition, South African chains have been relatively
slow to enter the Kenyan market in comparison with some
other Sub-Saharan countries. However, Game, which is
operated by South Africa’s Massmart, made its Kenyan debut
in 2015 as one of the anchor stores at Garden City Mall.
Other retailers from outside of Africa are also taking a growing
interest in Kenya, and the most high profile imminent market
entrant is the French supermarket chain Carrefour, which
will be an anchor tenant at both Two Rivers and The Hub. The
Turkish fashion retailer LC Waikiki will also be entering the
Kenyan market with a store at the Two Rivers Mall.
Other international retailers are considering entering Kenya,
but the difficulty in sourcing appropriate local partners
is recited as a major obstacle to market entry, the report
indicates.

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Conveniently located in Kitengela town, Royal Finesse residence
is about to change the face of the area as we know it. These
78 unit semi-detached townhouses is a masterpiece in the
making with never seen before architectural designs. Standing
at KES 17 million, these 5 bedroom all ensuite townhouses sit
on 2497 square feet of space and adequately fitted with the
most contemporary finishes. We sat down with Leah Wambui,
the soft spoken Managing Director of Cheriez Properties, the
company behind the development to discuss their success
stories, discoveries and the making of Royal Finesse - the
crown jewel of Kitengela town.
Give us a briefing of about the company, your history and the
journey to here?
Cheriez Properties is a relatively new brand, but was
incorporated in early 2009. We have 3 developments in the last
8 years in the market, royal finesse being our fourth project.
Our initial development projects, mostly apartment blocks
were purely for rent based in Umoja and Ongata Rongai area
in Nairobi. Royal Finesse is our first development for sale. We
didn’t start out as a development company though, but as an
agency managing other developments.
Tell us about your current crowning Project.
Breaking ground in October 2015, Royal Finesse is a dream
come true. The development is situated 3km from Kitengela
town along the Nairobi-Namanga Highway, a fast growing town
with strong transportation links including a good road network,
linking the town to Nairobi Central Business District, Jomo
Kenyatta International Airport which is 15 minutes away and
Syokimau Railway Station nearby. It is my personal pet project
where I’ve taken into account every detail from architectural
design layout to the type of lawn each house will have. We have
consulted with multiple architects, refined the architectural
design till we made the perfect home.
THE CROWN JEWEL OF
KITENGELA TOWN
ROYAL FINESSE

What are some of the defining details of the development?
Royal Finesse is a residence so rare that will be graced only by a
lucky few! The development comprises of a spacious 5 bedroom
all ensuite including a penthouse floor that can be converted
to a family room,gym, study or an extra bedroom and a DSQ
which will comprise a total of 78 semi-detached townhouses.
Each townhouse sits on a 2497 sq ft. The master bedroom also
has a balcony overlooking the vast plains in Kitengela and has
a walk in closet. Kitchen boasts of state of the art finishing’s,
cabinetry,gas hob and hood,microwave and oven. Each house
has ample parking, and garden lighting. Other amenities in the
community include swimming pool, club house,children play
area, jogging lane and basketball court. We also have a standby
generator, adequate water supply, internet cabling and state of
the art security systems. Each unit will sitting on an eighth of
an acre.
Is Kitengela too far? Why should anyone invest in Royal that
distant from the CBD?
Commuter towns are becoming more attractive to city residents
as Nairobi becomes more saturated. Areas that are currently
attracting more investments in new housing projects include
Ruaka, Thika, Ongata Rongai and Kitengela; Royal Finesse
capital. This is fueled by the ease of transportation to and fro
these areas and the low cost living. Also, the price of land in
Kitengela is quite affordable compared to other areas in addition
to ease of access of construction material.
The current status of most developments in the market is
quite devastating. Most of the industry stakeholders are
bit cliche when putting up these developments. You’ll find
minimal creativity while crafting, designing and building these
properties. Their primary objective is always money. How much
money can they milk from the development. I can’t count the
number of people I’ve met who are beyond disappointed with
the home investment decisions.
Royal Finesse is inspired by these conundrums; building homes
that you as the developer would actually buy. It’s not about
the money, but consumer needs; state of the art finishing,
architectural masterpiece and close proximity to social
amenities. The gated community will have a kids play area, a
swimming pool, a gym a clubhouse, a jogging lane and parking
for two in each home.
Speaking of amenities, are there any near the development?
Royal Finesse is situated 3km from Kitengela town along the
Nairobi-Namanga Highway, a fast growing town with strong
transportation links including a good road network, linking
the town to Nairobi Central Business District, Jomo Kenyatta
International Airport which is 15 minutes away and Syokimau
Railway Station nearby.
There are numerous social amenities in the area which include
shopping malls, entertainment spots, hospitals and schools.
For those interested in buying this home as an investment,
rent ranging between KES 80,000 to 100,000 can be fetched per
month.
When will the project be ready for launch?
Our first phase will have 10 units ready for launch by June 2016.
We will develop the remainder of the 68 units later on in the
year. We expect project completion by end of 2017. We can be
reached via email at sales@cheriez.properties Or phone at
0780 242 400.

Kenya, the economic hub of East Africa, entered into middle-
income status after its economy was rebased this year. The
economy had grown by 25 percent more than projected in
2013, reaching KES 4.76 trillion (USD 55.24 million), above the
projected KES 3.8 trillion ($42.6 billion) [1]. This increase was
caused by five sectors, namely: agriculture, manufacturing,
real estate, transport and information and communications
technology (ICT). Consequently, the GDP per capita also
increased to KES 111,330 ($1246), up from KES 88,813 ($994).
The Kenyan economy is projected to grow by 6.9 percent
in 2015 [2]. This is due to low fuel costs experienced at the
beginning of the year, which have resulted in increased
consumer spending. Consequently, manufacturers’ revenue
has increased, benefitting allied sectors including real estate,
infrastructure and transport. A recent report from KNBS [3]
revealed that the construction sector recorded a growth of 11
percent, compared to the same quarter in 2013, which saw
8.6 percent growth.
The ICT sector recorded a growth of 6.6 percent in the third
quarter of 2014, attributed to the ongoing infrastructural
developments in the sector. Businesses are eager to embrace
the technological trends in conducting business, which are
more convenient and efficient for the rising digital age.
Kenya’s population is approximately 45 million; the country
has a young population, with a median age of just 19 years.
The population will provide the country with a much needed
workforce, pushing it towards a stronger middle-income
economy. With more than half of the population (60.8 percent)
currently less than 24 years old, the demand for property will
only continue to grow, as the younger generations look to
rent or purchase their first homes.
The property market in Kenya is still ripe and there is
room for development. With a growing appetite for luxury
housing, and an expanding middle class, the property
market is expected to remain robust. The young, productive
population will further drive the development of the country’s
economy, encouraging more companies to put down roots,
and attracting an increasing number of investors. This is
expected to further boost the demand for both residential
and commercial properties in the market.
KENYAN PROPERTY MARKET
OVERVIEW OF THE
www.lamudi.co.ke/research

2014 VS. 2015 TRENDS
Last year saw a number of Kenyan businesses within the real
estate industry beginning to align their services and products
by embracing the country’s technological growth. This has
resulted in the evolution of real estate portals, providing
an online platform for real estate agents, developers, and
individual sellers in Kenya to market their properties.
The property sector’s shift online has been further enabled
by Kenya’s increasing smartphone penetration, which has
grown from 63 percent in 2014 to 80 percent in 2015 [1].
This growth is greatly affecting the online property market;
between 2014 and 2015, monthly visits to Lamudi Kenya
increased by 900 percent.
Over the past year, Kenya’s population has continued to
grow at a rapid rate, resulting in a huge demand and supply
gap in the real estate industry. The current housing deficit
stands at two million units [2], and this number is only set to
increase as the demand for homeownership grows. The low-
cost housing segment is yet to be fully tapped into, as most
developers are focusing on the high-end houses, considered
to yield more lucrative returns.
In 2015, new methods of construction have become
increasingly popular. International companies, such as Elsek
& Elsek Group and Koto Housing, are capitalizing on this low-
income housing segment by building houses using alternative
methods of construction. These include the use of: Expanded
polystyrene (EPS), appropriate building material technology
(ABMT), structural insulated panels (SIP) and rice husk ash
cement as an alternative to pozzolan cement, in addition to
engine moulded blocks.
These methods have been used in areas such as Mlolongo,
Syokimau, Kisaju, Embakasi and parts of Mombasa, to not
only reduce the costs of construction but also the length of
the construction period. The government has been at the
forefront of the development of more affordable houses,
with the construction of an EPS plant in Mlolongo aiding this
move toward more cost-effective properties to meet growing
demand.
A number of international companies, including Blue Sky
International, Boleyn Magic Wall Panel Ltd, and Hong Kong
Building, have joined the movement to provide affordable
housing solutions, by building manufacturing plants
for prefabricated panels in Kenya. Furthermore, local
manufacturer Mabati Rolling Mills Company provides iron
sheets, to tap into the low-cost housing segment. These
plants are all located within the same region of Athi River,
an area which has seen a huge demand for low-cost housing
over the past year.
2015 has seen the development of construction financing,
due to the decrease of the mortgage interest rate from 9.13
percent in 2014 to 8.54 percent in 2015 [3]. Lenders such as
KCB Bank are offering up to 105 percent financing for homes
[4], in a move to increase the percentage of homeownership
in Kenya. Furthermore, Jamii Bora Bank has partnered
with Koto Housing to provide affordable housing through
mortgage facilities. According to a report by the Central Bank
of Kenya [5], in 2014 the number of people with residential
mortgage loans rose by 2134, to 22,013, despite the interest
rates in Kenya.
Mixed-use developments have entered into the market, with
the construction of the Garden City Mall, and Two Rivers
Mall, which is to be the largest shopping complex in Sub-
Saharan Africa, outside South Africa. These projects are
under development along the Thika Superhighway and the
fast-growing Ruaka Estate on Limuru Road, respectively.
The growing middle class, willing to pay premium prices
for quality goods and services, has driven the development
of these mixed-use complexes. Last year, Kenya also
experienced a rise in the number of mini-cities, including
developments such as Tatu City and Konza Techno City; 2015
saw the addition of Tilisi Mini-city.
80% increase in smartphone penetration in 2015

The growing middle class, willing to pay premium prices for
high-quality houses, has facilitated high property prices, as
developers move toward increasingly luxurious furnishings
and utilities. The diplomatic blue zones of Gigiri, Runda,
Loresho and Muthaiga are increasingly popular among
house-hunters, due to the abundance of development
potential.
Areas such as Kitengela are offering affordable houses for
the low- to middle-income market segment. Houses for sale
in the region cost an average of KES 9.9 million ($98,514).
As a result of the affordable land available, Kitengela Town
has seen an increase in demand. Consequently, a number
of construction companies have located themselves in the
region, to promote the development of low-cost housing.
Kileleshwa, Kilimani, Hurlingham, Parklands and Westlands
have welcomed the construction of elegant high-rise
apartments, due to increased demand. In areas such as Athi
River and Syokimau, the number of more affordable, yet
equally lavish, apartments on the market has increased.
Lamudi Kenya’s onsite data reveals that people are looking
to rent apartments for between KES 25,000 - 50,000 ($248 -
$496) per month. The most searched areas are Ruaka, South
B and Kasarani, due to the availability of apartments in this
price bracket.
According to Lamudi’s research data from the second
quarter of 2015. People are still looking to rent more than
to buy houses because the demand for affordable property
has not yet been met. Houses for sale are still on relatively
expensive, however, the lower construction fees introduced
in the third quarter of 2015 are expected to help come up with
more affordable housing.
RENTING RATHER THAN BUYING
71% OF KENYANS ARE INTERESTED IN

Color is the one thing every home must have. You do not have
to paint a rainbow on your wall for your home to be colorful.
Tasteful selection of color will go a long way to adding
personality and character to your living space. Color is in! The
brighter it is the better it looks. Color blocking and pairing
are trends that are very quickly making their way even to our
living spaces. When selecting a color palate, always have this
in mind:
Small Colors
These are the little pops of color that appear in various things
around your house. It could be the pillows and throws or the
little things that are in your house. As insignificant as they
may seem, these trinkets go a long way in tying in to the new
look of your entire house. They add visual interest to a room.
Medium Colors
These are the more pronounced colors around the house,
including sofas, dining tables, book shelves. These kinds
of colors require a serious commitment and are not easy
to move around as items with small colors. Drapery and
curtains also fall into this category as well.
Big Color Choices
These choices are for true color lovers, those who like to take
big bold steps and bring the house to its full color potential.
This includes the colors that go on the walls, ceilings and
floors. Bold colors will bring personality to your house.
Choosing a very bold color will mean that you have to have to
choose colors that are less loud.
You want your house to have character, not to look too dull
or too bright.
COLORS FOR YOUR HOUSE
THREE MUST-HAVE

If getting rich were easy, then everyone would be rich.
I’m sure you’ve heard this statement before. But this is
especially true in real estate. In real estate investment, there
is a fair opportunity to get rich if you start early and commit to
becoming an intelligent investor. But becoming a successful,
intelligent real estate investor takes time, energy, education
and consistent daily action. We look at a few critical questions
to ask yourself before embarking on a career as a real estate
investor.
1. Do you have an action mindset?
I love this question because it is a question that only you
can answer. As a matter of fact, you know in your heart the
answer to this question without having to think about it. Sure
you can try and convince yourself that you do have a bias for
action, but you’re only doing yourself a disservice.
The ability to take action despite the obstacles in your way is a
key determinant of your success in property investment. You
may be dreaming of retiring early to travel the world while
earning millions of naira passively, which is fun & exciting, but
the effort required will be intense and challenging. However,
if you have a bias for action and the resolve to follow, you can
be rest assured that your success in the real estate business
is secure.
2. Are you future-oriented and able to delay gratification?
In the early stages of investing in real estate, a lot of investors
are typically seeking short-term gains of within a few years.
The intelligent investor should realize that by thinking long
term and being able to delay gratification, the potential return
on your investment would far exceed any other investment
opportunity available.
3. Do you know your opportunity cost?
Now that you’ve decided to become an intelligent real estate
investor you need to determine if have you considered the
opportunity cost of your investment? Ideally you should
consider the cost of alternative investments for your capital
and the time cost involved for each option.
While the capital opportunity cost is easy to determine, the
time opportunity cost may not be so easy to determine. To
be successful in real estate in the long term, you’ll need
to create the time required to study the market and other
aspects related to your investment and become adept at
leveraging your knowledge into other deals.
In conclusion, though real estate investing success is
possible for anyone that wants it. It usually requires some
perseverance, dedication and self-mastery. The goal of this
article is to help you start thinking about the right steps to
take and inspire you to push beyond your personal limits.
So my dear friend why don’t you start today, your riches in
real estate might be just around the corner. You owe it to
yourself and your family to grab it and never let go.
INVESTOR IN THREE STEPS
HOW TO BECOME A REAL ESTATE

As a renter, you have the luxury of choosing a place that
meets your immediate needs.however, buying a home is a
much bigger commitment, both in terms of finances and the
length of time you’ll likely live there. When seeking out your
first place – whether a house or condo or anything in between
– it’s important to do your homework.
Here are 5 things to consider as you begin the process of
purchasing your first place.
Know that no home will be perfect
Your first home may likely not be the perfect place. But you
can always make it the right one. Finding the right home is
often a matter of prioritizing. Make a list of “must haves,”
along with “nice to haves” and “not necessary to haves.” A
three-car garage is nice, but would you rather have a light
or live in a good neighborhood with security? Only you can
measure the importance of the amenities you are looking for.
Quality of workmanship
Your first place may not come with many frills or luxury
features – but all the basics should be in good condition,
especially workmanship standards. Thoroughly inspect
prospective properties. And before any purchase is made,
performing an inspection with your team (plumber,
electrician, generator man,) is a must. Your real estate agent
can guide you through this key step.
The growth possibilities
Shop for a place that meets your current spaces needs, but
also consider one that can adjust to a changing household.
A five-year plan may not work out as you expect, so think
about possible life changes (new job, marriage, children, new
business, extended family) that could impact your need for
bedrooms, bathrooms and square meterage.
Consider the total cost of ownership
When you buy a home, you take on recurring costs you don’t
have to worry about as a renter. Look for a home that meets
your budget in terms of full living costs – mortgage, bills,
waste disposal, security , electricity, sewage maintenance
fees, estate association dues and other fees. A good real
estate agent can help you calculate estimated monthly costs
to determine the most appropriate price range for you.
The lifespan of things
In addition to identifying cosmetic and structural flaws before
you buy, know what to expect from the home’s components.
How long until you need to replace the roof, appliances, or
carpet?Everythingmaybeinworkingordernow,butallhomes
need these types of repairs at some point. Researching the
expected remaining life on large-ticket items can help you
plan for the future.
BUYING YOUR FIRST PLACE
5 THINGS TO THINK ABOUT WHEN
Contact us for more details and to book your spot:
Tel: 020 513 1000, 0708 555 555| Email: sales@tatucity.com
www.tatucity.com
3km from Northern & Eastern Bypass Junction
and 5km from Thika Highway at Exit 11
Serviced plots starting from Kshs 8M
Tatu City @Tatu_City
E N J O Y A B L E E X C L U S I V E L I F E S T Y L E
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• KIJANI RIDGE OFFERS A UNIQUE LOCATION
• SECURE COMMUNITY
• WORLD CLASS INFRASTRUCTURE
• AWAY FROM THE CITY CONGESTION
• OPTIMUM RETURN ON INVESTMENT

Developers and facility managers play an increasingly
important role in the industry to meet the demand for good
qualityservicedhomes.Theamountofmoneydivertedtoannual
service charges when taking up a property is dependent on the
size of the entire residence; populated serviced communities
pay less overall and vice versa. It is also determined by the
extent of cover provided by the basic service charge fee and
that is a function of a few things.
1. The agreement between the service providers/vendors
and the homeowner
2. The location of the property in question
3. The general consensus of other occupants and other
factors which may be unique to the residence.
Here are a few points we have compiled that every potential
serviced home buyer or tenant should consider before
committing:
Electricity
We find that tenants do not mind paying the pricey premiums
on a service charge in exchange for a reliable and standardised
electricity system. The following questions cover all you need to
know with respect to the provision and operation of electricity
in your new home:
• Is the cost for diesel included in the service charge, if
not, how much is it?
• Is there an alternative (standby) generator?
• Is there a dedicated transformer for the property?
• Does each unit have a separate meter?
• Are inverters provided?
As mentioned earlier, you will want to know and fully grasp the
responses you get to these questions and be sure to include
them in your final appraisal.
Sporting facilities
For communities with pools, gyms, and squash courts etc.
the use of, regular upkeep, cleaning and servicing of general
sporting facilities may attract a premium onto the service
charge and you will need to ask what facilities are available to
you & if you need to pay a premium.
Access Control & Parking Space
Serviced communities are commonly characterised by very
tight security, in instances whereby a gate pass is required for
entry, is there a quota for the number of gate passes allocated
to each residence? The same applies to parking. Will additional
vehicle parking space and gate passes attract a premium?
General Areas & Electrical Fittings
The aesthetics of an environment go a long way in keeping the
valueofyourhomeintact.Doestheservicechargecovergeneral
maintenance of the surroundings i.e. gardening, clearing &
tidying paved walkways and driveways, the necessary change
of bulbs for street lighting and in apartment buildings with
elevators, the servicing and maintenance of this facility?
Telecommunications & Internet Services
Although not commonplace, some homes may come with Wi-
Fi connection, intercoms and so on and much like sporting
facilities, they may be available at the request of the tenant and
attract a premium onto the basic service charge. In addition,
the infrastructure for fibre optic internet connection is available
in some residential areas in Lagos and may be available at your
serviced home. Make enquiries about its availability and the
costs involved.
Waste Disposal
The bill for the bi-weekly or monthly collection of the refuse
parked outside your home is usually included in the service
charge. Make enquiries about the cost for this service and the
frequency of collection.
Window cleaning
While still gaining popularity, some residences make provision
for window cleaning services and this is added onto the service
charge.
A professional agent will work to ensure you know exactly what
is covered in your service charge and see to it that what was
promised is delivered.
INTO YOUR SERVICED HOME
QUESTIONS TO ASK BEFORE MOVING

Meet Kings Developers, undoubtedly Kenya’s biggest
property developers with some most iconic developments
ever seen in the market. Talk of Sifa towers, Prism towers,
Bogani palms just to mention a few, these are some of the
famed architectural masterpieces the premier quality homes
developer is synonymous with since it’s inception in 2009.
Given the company’s dedication to provision of ultra-high,
innovative, and cost-friendly solutions for real estate investors
in Kenya, we sat down with Vinayak Karambalkar, Senior Vice
President of Sales and Marketing, to discuss the state of
commercial real estate in Kenya.
Tell us a bit about the company
Kings Developers Limited (KDL) is a fully Kenyan-owned
real estate development company that was founded as part
of the Royal Group of Companies, a family run business with
5 brothers. Since inception 8 years ago, we have become
synonymous with the development of ultra-high commercial,
residential, retail, hospitality and mixed-use properties. We
began operations in Mombasa, moved to Nairobi and expanded
to Nakuru and Eldoret.
Describe some of the interesting discoveries you’ve made since
inception
We were the first ones to build a housing estate in Nakuru
dubbed Milimani, where we developed 460 housing units. It
was a tremendous success given our value proposition pillars
firmly founded in ensuring that our homes are the embodiment
of sophistication, authenticity and excellence. We expanded to
Eldoret where we build about 240 out of 650 homes in our first
phase, and the response has been equally amazing. Unlike
popular belief, demand for real estate goes beyond Nairobi
and Mombasa.
COMMERCIAL REAL ESTATE IN KENYA
KINGS DEVELOPERS - STATE OF

How has your growth performance been like for the last few
years?
Our growth in the real estate industry has been exceptional
having started out with one project and expanded to
sixteen projects. Every year we launch about 2 - 4 projects
encompassing luxury and middle income residential property
with a goal of meeting the annual 250,000 housing deficit in
Kenya.
Give us a briefing on why you’re big on commercial real estate.
In Nairobi, there is a lot of commercial space for both rent and
for sale with the ever rising middle class and SMEs expediting
its demand. Kenya improved 28 positions in the World Bank’s
ease of doing business index in the last couple of years helped
by reforms in business and property registration. This ranking
reflects the city’s appeal as a magnet for capital, businesses,
and talent. With Kenya already on the path towards a devolved
government, the demand for residential, commercial and
industrial property can only rise. This has fueled the emerging
middle class desires and demands quality infrastructure- they
want well designed properties with great finishing and in safe
and secure locations and they are willing and have the ability
to pay premium prices for their choices. This is where we
come in. Our commercial establishments meet all the above
requirements. Our end goal is not only to redefine commercial
real estate in Kenya but to bridge the demand gap in the region.
What message would you send to investors who want to enter
the market?
Kenya has got the highest returns in property investments
today. Trust comes to question when investors seek whom
they can work with in any given market. As kings Developers
we are transparent in our work and open to new investments.
Vinayak Karambalkar
SeniorVicePresident,Sales&Marketing,KingsDevelopers.
email;sales@kingsdevelopers.com
Tel:0734 195 020

Last year is one that economists around the world will
remember for a long time. It was the year that saw some major
political, economic, military and cultural upheavals occur
around the world. They included the collapse of oil prices, the
rebound of the US dollar, the slowdown of the Chinese economy,
the weakening of the Russian economy, the European crisis,
the fear of a Grexit and terrorism. These significant incidents,
among others, created a highly volatile environment for all
markets.
As an emerging market, Kenya was directly affected by
these international events. Indeed, the country faced several
challenges last year. Among these were the depreciation of
the shilling against the dollar and the British pound, inflation
that exceeded 8 per cent in December, a Central Bank Rate
that increased twice in 30 days, thereby significantly increasing
the cost of finance, an increase in the number of red loans, the
stoppage of operations by two banks.
There was also an obvious slowdown in the real estate market,
with the house price index gaining a marginal 4.21 per cent
increase in the first three quarters of 2015, according to the
Kenyan Bank Association House Price Index. The increase in
the external debt and the need for money, which pushed the
yield of Treasury Bills to more than 23 per cent, were also
among the main phenomena that marked 2015.On the positive
side, the real estate sector remained the focus of investment
interest. According to the latest data released by the Kenya
National Bureau of Statistics, the real estate sector’s year-on-
year growth at the end of third quarter of 2015 was 5.4 percent,
while the sector’s overall contribution to the gross domestic
product remained at 8 per cent. The following are some of the
key factors that will play a vital role in the real estate market
this year:
OPENED UP SATELLITE TOWNS
The growth in the real estate sector was driven by heavy
government investment in infrastructure, which opened
up satellite towns such as Ruaka, Mlolongo and Athi River
within the Nairobi metropolis. At the same time, the devolved
government created investment and development opportunities
in the counties, since it was up to each county to fund local
development. Favourable demographic trends, including a
growing middle class that is spurring development across all
real estate sectors, also contributed to the sector’s growth.
The key question is whether the growth of this sector, which
is predominantly local — with a small percentage of foreign
investors — will be able to maintain a return on investment that
will maintain high investor interest and the asking prices in the
market sustainable.
In the last few years, Kenya has been performing on average
better than what experts had predicted at the beginning 2000.
The country’s economy has been consistently growing by
percentages that other economies cannot even dream of. With
an average growth rate above 5 per cent since 2010, the Kenyan
economy has been upgraded to a middle-class one. At the same
time, many people’s expectations of an even better future is
growing too.
Between the actual numbers and Kenyans’ expectations, the real
estate market has capitalised the most on this positive course.
Real estate values have been growing all over the country, with
Nairobi and its satellite towns gaining amazing price rises and
making big profits for almost everyone involved in the property
industry. This remarkable performance was possible because
of other factors.
First was the prevailing political stability, which created a
safe environment for local and foreign investors. Equally
important was the fact that the global financial and economic
circumstances favoured the growth of the emerging markets.
Indeed, large amounts of capital from the big economies have
been invested in many emerging markets around the world.
MAINTAIN INVESTOR INTERESTS
7 CRITICAL ASPECTS THAT

PEGGED ON DISCOVERY OF OIL RESERVES
The expectations pegged on the discovery of oil reserves in
the country boosted the positive attitude among investors,
particularly foreign ones, who wanted to capitalise early on
possible future economic growth. The fact that the Chinese plan
to penetrate and dominate investment in Africa, and especially
the sub-Saharan region, is another very important reason for
this growth, since huge investments have been funded thanks
to Chinese interests.
Finally, the stability of the Kenyan shilling in the last few years,
coupled with a steady interest rate, played also played a role in
the country’s remarkable economic performance. Today, some
of the these factors that boosted the real estate market and the
Kenyan economy are facing challenges. The Chinese economy
is shaking and oil prices have been so low that they do not allow
for investment in new oil exploration in the country. Besides,
the shilling if facing stability problems. Consequently, this year
the sector’s growth will be driven mainly by the the fact that an
increasing number of people cannot afford housing. The main
problem with the local market is lack of affordable housing.
Meanwhile, there is a huge offer of highly priced, unaffordable
properties around the country.
THE GROWING MIDDLE CLASS
The rapidly expanding middle class in the country is searching
for affordable, secure and aspirational living that meets their
housing needs. With increased congestion close to the city
centre, this middle class will have to be housed in the satellite
towns on the outskirts of Nairobi, which have benefited from
infrastructural upgrades. However, it is important to understand
what affordability means with regard to this upcoming “middle
class”. This class cannot afford to spend Sh10 million or even
Sh5 million, on a house, especially with the current financial
policies and the high cost of borrowing .
THE HOUSING DEFICIT
According to the National Housing Corporation, there is a
housing deficit of more than 200,000 units per annum for the
low- to middle-income market. This is the most important fact
that should be understood by all: The demand is there, but
for affordable housing and office space. Most of the ongoing
projects target the higher classes, and prices have gone through
the roof. The asking price for a two-bedroom apartment in areas
like Kilimani in Nairobi is about Sh20 million. Rentals have also
followed this artificial trend, which is making the market very
complicated as lots of new buildings remain vacant. Supply is
targeting the wrong group of potential buyers but not covering
the areas where there is real demand. New projects must target
the middle class and provide premises that are affordable to the
majority of those who have a need.
SUSTAINED INVESTMENT IN INFRASTRUCTURE AND
URBAN PLANNING
Urban centres are growing rapidly due to the high increase in
population. Serious urban planning and modern infrastructure is
needed. Increased development along key infrastructural nodes,
which have been brought about by the development of bypasses
such as the ones in Ruaka and Karen, are required all over the
country. Nairobi, as well as the rest of the country, needs to get
modernised. What is the point of living in the capital, or in any
other town, with the nightmare of serious flooding whenever it
rains? Then there is the wastage of time on the road due to traffic
jams as you make your way to work. The government needs to
invest more in infrastructure and proper urban planning. It must
make sure that it provides quality services, which will in turn
make investors interested in maintaining the current property
prices. This will provide better standards of living for the people
and prevent the market from collapsing.
FINANCE
The high interest rates are detrimental to investment in real
estate. Interest is as much a cost to the developer of a project
as it is to the end buyer. The increase in the lending rates by
commercial banks caused a slow-down in the market as it
affected both existing and new loans. If there is anything that
will help the market’s growth, it will have to be a drastic change
in the country’s financing environment; an easing of interest
rates and easier access to finance. Lower interest rates allow
more people to qualify to buy a home, meaning more people
will be able to buy homes. When more people can afford homes,
the number of homes on the market will be reduced (reduction
in supply), which will in turn push up costs. Conversely, when
interest rates are high, fewer buyers qualify for loans, which
means supply outstrips demand. Over supply tends to push
prices downwards.
POLITICAL STABILITY
Elections always affect markets, not only in Kenya, but practically
in every country in the world. Expectations and fears about a
possible change of government creates insecurity, resulting in
a volatile environment. As a result, next year’s general election
could lead to a slowdown in certain markets, especially in
areas that have been affected by political tensions in the past.
Everybody needs to realise that exercising their political right
and democracy requires patience, wisdom and avoidance of
tension as these could be catastrophic to the country’s growth.
This year, the country’s property market will have to overcome
a lot of challenges in order to remain strong and profitable.
All interested parties should be extremely careful as the
global volatility is directly affecting all markets, and especially
emerging ones. This year the real estate sector is expected to
be quite volatile and challenging. This is the year that the sector
has to prove its ability to continue attracting investments. It is the
year we expect to be in the middle of a global financial cyclone,
so it is advisable to be patient and constantly keep abreast of the
market indicators and economic data.
Granted, profits can be realised under any circumstances, but
it will not be easy. The risk factor has to be seriously considered
by all the interested parties. Being “aggressive” this year
might not be the best investment strategy; safer strategies are
advisable. However, even though we are facing a challenging
year, we should remain positive and optimistic. Psychologically,
this is very important to investment, so it is important not to
panic. Analyse the market and follow what is going on in the
news. Remember, sometimes it is better to say no to a deal or
market than to say yes blindly.

Not long ago, the argument for millennials driving the
Kenyan economy was not the most convincing. The unofficial
generational category of individuals born between the early
1980s and early 2000s, millennials were after all just coming of
age about a decade ago. It just could not be foreseen then how
significant their contribution could be.
Fast forward to the present, and the country is now reaping
the demographic dividends from millennials. By the United
Nations Population Fund definition, demographic dividends is
the “economic growth potential which results from shifts in
a population’s age structure, mainly when the working-age
population (15–64 years old) is larger than the non-working age
(14 and below, 65 and above).”
At the 2nd East African Property Investment Summit held
on April 2015, real estate Investment firm Stanlib CEO Anton
Borkum said Kenya, has one of the youngest workforces in
the world. With a median age of 23.2 years old, millennials, as
Santos best described, have turned the “labor force into the
new people power.” Yet, what exactly drives that power?
Valuing Time
It is well documented that the millennial generation is the first
batch of digital natives. Growing up in an age of mobile phones
and social media where almost everything is available at a push
of a button, patience tends to become a scarce virtue among
young people.
Millennials’ perceived impatience is also indicative of how
much they value their time. As such, many from this generation
hardly linger too long in pursuits that are of little interest or
importance to them, making sure that time is made of the most
effective use in things that are.
Millennials also do their best to live close to the aspects of their
lives that are most significant to them, be it their offices or
places they spend time with their friends and colleagues. This
is the reason many young urban professionals prefer to live
in Nairobi in order to be close to places that matter to them,
allowing them to eliminate long commutes and traffic from
their daily routine. As a result, they can conveniently access
OF YOUNG HOMEBUYERS
MILLENNIAL TIMES: UNDERSTANDING THE NEEDS AND WANTS
Unreasonably generalized as indecisive and too consumed in digital connectivity, the millennial
generation proves to be as influential on the economy as they are on electronic media.

anything they need or go wherever they need to go, becoming
more productive and self-fulfilled at the same time.
And the “Fear of Missing Out”
The millennial generation is greatly associated with the social
angst FoMO, or the “fear of missing out.” It is characterized as
“pervasive apprehension that others might be having rewarding
experiences from which one is absent.
While the FoMO phenomenon has further perpetuated the
assumption that millennials’ need to always be digitally
connected and updated about the things that are significant to
them, this fear of missing out has also helped keep millennials
motivated and hardworking in the pursuit their interests.
Millennials look at their careers as journeys of self-discovery,
and the fear of missing out causes them to explore varying
work opportunities whenever presented with a chance. With
this desire to try as many things as possible, an ideal home for
a millennial would be one that is close to his work place and
leisure areas.
Nairobi is one such area in Kenya that would be a perfect
base for any millennial: it is highly accessible, a business and
financial district in its own right, and offers young people plenty
of exciting activities, giving them a better chance of not missing
out on opportunities.
Great Earning and Spending Power
Comprising over 50 percent of the country’s currently employed
individuals and two-thirds of the overall population, millennials
also have a great deal of earning and spending power. Their
sizable disposable incomes put them in the position to make
significant purchases at an instant, or what global auditing firm
Price Water House Coopers has dubbed as the “I want ergo I
need” spending behavior.
Whilethegeneralassumptionisthatthesefinancesaredirected
toward the latest gadgets due to the generation’s affinity for
the latest technology, it is also geared toward real estate. In
fact, Lamudi data for the third quarter of 2015 shows that there
is an almost equal proportion of renters and buyers among 18-
to 24-year-old online property-hunters (50.2 percent for rent
versus 49.8 percent for sale). However, there is a tendency
for property-hunters to search for for-sale properties online
as they get older; among 25- to 34-year-old individuals, 57.3
percent are researching for properties to buy.
Overall, millennials value their time greatly, wants to stay as
relevant and close to everything important to them as possible,
and have a large spending power which makes them more
logical and practical in their expenditures—this is why looking
for properties situated in established business districts like
Nairobi makes more sense to them.

Property valuation is simply the assessment of the market
value of a given property. An effective valuation on any
property should outline the worth of your property clearly. It’s
important to know the value of your property when going into
any form of transaction. Whether you are selling a property,
building a house or buying land or involved in any one of the
other countless reasons that necessitate property valuations,
the fact of the matter is that it’s something that you’re going
to run into if you own a property. A lot of people are not aware
of valuation, let alone its importance in the property market;
others just consider it as simply an added expense to their
pocket. It is important to note that valuation is an opinion of an
independent and neutral expert known as a valuer, as to fair
market value, of the price which, such property would fetch if
presented for sale to the public at the relevant time.
Why carry out a valuation?
With the property market in Kenya experiencing a rejuvenated
Valuation is fundamental in valuing homes, offices, land,
furniture and fittings, machinery, commercial and private
vehicles and other assets. growth for the last decade now,
coming across situations where property holders, prospective
buyers and insurance companies are stuck in agreeing on
the right price for a property or for insurance settlements
has become a common place. If for example you didn’t do a
valuation to your electronics and a burglar broke in and stole
all your valuables, what would you do? My answer is; nothing.
But if you had taken an insurance policy for your gadgets and
done a proper valuation with your insurer then you would be
compensated.
When do we do a valuation?
Gaining a property valuation is a very important part of selling or
buying or getting your insurance claims. Naturally, the buyers
of a property will want to receive a low valuation and sellers
the exact opposite. As both parties approach the negotiation
phase, it is important to have an unbiased valuation of the
property to make sure that no party is particularly favoured.
This will help both buyer and seller to achieve a common
ground.
What information is contained in valuation?
Besides, valuation is not limited to house property only; it
involves all sort of assets like land, vehicles, housing furniture,
electronics, mobile phones and other gadgets. Valuing these
assets puts you in harmony with your insurer for settlement
of claims in case they are vandalised, broken or stolen; as
insurance would not settle claims without valuation. By virtue
the importance of property valuations, and their role in a great
deal of legal proceedings, you want to make sure that you’re
getting the independent, best, most accurate valuations that
you can.
Failure to do so can be extremely damaging later on, and
you want to make sure that who you are hiring to perform
understands the processes and will make sure that you
receive a highly accurate market value for the property in
question, and that this market value is supported by expert
research that includes items like prior sales, history of the
property, and rental information that pertains to the overall
value of the property.
IS VALUATION?
HOW VALUABLE & IMPORTANT

Often, property owners are not aware of the valuation process
and as a result they are not sure what to look for, how much to
expect to pay and other relevant information as far as valuation
is concerned. To assist with this, below are some tips to know
about property valuations and what to expect when you decide
to carry out one.
What to consider when carrying out property valuation.
Before buying a property one needs to know the key elements
that will act as points of reference to the lender. This
information can also help home buyers in selecting their
dream homes as they would certainly want to make the best
decisions pertaining to the arguably the biggest investment of
their lifetime.
To begin with, geographical location must be considered. The
properties that are near social amenities and infrastructures
would fetch a higher valuation than those located in the interior
areas and difficult to access. The demand of property in some
areas will also affect the value of the property; in Nairobi for
instance, properties fetch higher value than any other part of
the country.
Secondly, the nature of the property must come into play.
Whether a property is residential, commercial, agricultural
or industrial will affect the valuation of the property. Different
types of property will yield a varied amount of valuation even if
they are located in the same place.
How is valuation and insurance related?
Beside current usage, the insurer would be interested in
knowing if the area the property is located is risk prone. It
is always difficult to rent or sell a property if they are in an
earthquake, flood or landslide prone zone. If the property is
in a dangerous or risk-prone area, the insurer may not be
comfortable in approving the cover. The insurance companies
always avoid giving cover to properties in such areas.
How is valuation and mortgage related?
The bank decides the tenure on the basis of the life of the
property before issuing any mortgage; if it were an old
building, then lenders would be more careful in approving a
mortgage for the property. The lenders would first inspect the
value of the property being purchased if it’s worth the amount
of money one requires.
Consequently, the level of maintenance of the property
definitely plays a role in assessing its value. A well-maintained
older building can still fetch a good valuation. Properties
having maintenance issues will command a lower valuation.
This is why it is always important to regularly do maintenance
of your property before you carry out a valuation. Clean the
compound, paint the walls afresh, replace translucent and
broken glasses with new ones, and ensure everything is near
perfect state before you invite valuers to assess the property.
Normally, property valuation reports will indicate current
market value (CMV), insurance value, mortgage value and
forced sale value (FSV).
Costs and benefits of property valuation
In Kenya the valuation fees reviewed in 2012 are detailed in
Legal Notice No. 107 under the Valuers Act — The Valuers
(Forms and Fees Amendment) Rules 2012. In the act, the least
amount of valuation fees is Kshs 15000. Generally, higher
value property attracts higher valuation charges and this
is determined by the different categories they are classified
into. These categories include; agricultural or urban land,
property under compulsory acquisition, rental property, plant
machinery and trading stock. Scale fee is at 0.25 % of the
valuation amount but in most cases fees are mutually agreed
between the valuer and client.
Property valuations are an extremely smart investment, even
though sometimes people are put off by the initial cost they
seem to carry. Property valuations are relatively inexpensive
when you consider the long-term savings. This cost is not
a sure one, however, and most property valuer will give you
a fixed quote for your property once you get in touch with
them and explain the circumstances and purpose behind the
valuation such as insolvency, capital gains tax, or mortgage
security. The property valuer can give you a firm price quote
once they have a good idea of what the process will entail,
but most likely the cost of a valuation will be in excess of a
few thousand shillings. Valuation is indeed important to
all property owners. There are other situations where the
information of a property valuation can be of immense help
when it comes to discovering how much you might owe or
what you are obligated or entitled to in insurance settlements.
A good property valuer and the ensuing property valuation will
be worth far more than the valuation cost simply because the
accurate, detailed, and in-depth information you will receive
from the valuation will be able to inform you in much more
profitable decisions about your property.
Generally, a property is only worth what someone is willing to
pay for it. A valuation however is still important, if only used
to gain an approximate figure. A property valuation, whether
carried out by a valuer, a surveyor is only an estimate, it can
never be considered one hundred percent accurate due to
the guesswork involved when arriving at a figure. Although
no property valuation is one hundred percent perfect and one
hundred percent accurate it will give you, as either a buyer or
a seller a good idea of what you should be paying or receiving.
How is valuation related to book keeping?
Valuation is also important for book keeping purposes. To
determine the status of your company’s worth you need to
carry out regular valuation on your property and other assets
to reflect the true value in your financials and balance sheet.
Bankers are keen in examining client asset net worth in
reflection to their business needs. Therefore after reading this
article, I am sure most of you will acknowledge that valuation
is indeed an important tool in applying to our assets at one
time or another.
Martin Dias
Managing Director, Financial & Property Consultants Limited.
email : md@fapcl.com
Tel : 0722 524 383

ADVERTISE YOUR BUSINESS
WITH LAMUDI
www.lamudi.co.ke
cs@lamudi.co.ke 0800 721 301

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