The Mortgage Company,
The Greenhouse, 2nd Floor
Adams Arcade, Ngong Road
P.O. Box 29310-00100, Nairobi

Tel: +254 729 933955, +254 737 933955
Email: info@tmcafrica.com
www.tmcafrica.com
WATCH TMC VIDEO
HOW CAN I REDUCE THE COST OF MY MORTGAGE?

One of the biggest questions in every home buyer’s mind right now is How long can I continue to meet my mortgage payments? Developers are wondering whether they should continue with the projects and whether they will have takers for their developments.

Over the last 3-4 months, the Kenyan property market has suffered a double blow. The Kenya shilling depreciation from an average of Kes 80 for the longest time to an all time low of Kes 107 to the US Dollar which drastically increased the cost of imported finishes and the increase in interest  rates from all time low of 9.9% p.a. to 27%p.a. over a span of 3 months! Every person with a mortgage facility was thrown into shock facing the reality that their mortgage repayments had close to doubled overnight! For the developers the double whammy of facing increased cost of construction and high loan repayments on the project financing has left them wondering if they can break even let alone make a decent return. To make matters worse, the mortgage takers who had committed to buy the units at the pre-sale and development phase are also wondering if they can really buy the houses now.

Read more...
 
WHAT DOES THE FUTURE HOLD FOR THE KENYAN MORTGAGE MARKET?

If someone posed the question 6 months ago, everything looked like Kenya was the best place in the world to invest in the real estate sector… the Central Bank of Kenya had opened up the mortgage market to the entire banking sector allowing all the market players to participate in whichever area of property financing that they wished to participate in. It is no wonder that there was no shortage of new projects coming up and new developers were excited to move into this lucrative area without reservation. International players began to eye the market and the emergence of Masterplan developments meant that the more experienced developers were beginning to offer lifestyle solutions to the discerning Kenyan and international market. The strong infrastructure also influenced decisions of many international companies to set up base in Kenya as a regional hub for Africa including Airtel, Google, Worldbank and IFC among others.

Read more...
 



FacebookTwitterLinkedin

Did you know

Housing market activity rebounds on CBK rate cuts

back to life

  • Rent price rises in quarter four 2012 far greater than sales price rises
  • Asking rents rose by 4.1 per cent in the final quarter of 2012, over the previous quarter, with steepest rises at top of the market for standalone properties
  • Asking sales prices rose by 1.7 per cent, much more slowly than in the third quarter of 2012
  • Both renting and sales activity rose sharply, however, after a profound drop in the middle of last year, with viewings by purchasers rising to levels approaching the first half of 2011, before the interest rate hikes

 

Annual Index Highlights:

HassConsult today unveiled the Hass Property Index results for the final quarter of 2012, showing a sharp upswing in viewing and enquiries, but still relatively flat sales pricing - although rental prices continued to rise steeply across all segments of the market.

“The sensitivity of buyers to interest rates, even in a largely unmortgaged market, has shown up very sharply in sales activity and pricing in the last 18 months,” said Sakina Hassanali, Head of Research and Marketing at HassConsult. “With rates slashed, enquiries returned to much the same levels of early 2011.”

However, sales prices are taking somewhat longer to gain momentum. Pushes for higher sales prices in quarter three achieved little real gains, seeing asking prices remain largely static in the final quarter.

But asking prices for rentals continued to climb strongly. With asking rents rising by an overall 4.1 per cent, the biggest rises came at the top of the market, where rents for standalone properties rose by 5.2 per cent on the previous three months, making for a 17. 2 per cent increase from January to December 2012.

“The upwards correction in rents, as buyers have held off for better financing terms, has been particularly strong after the relatively flat rentals market in the preceding two years, and may yet take some months to level out,” said Ms Hassanali.

Even the previously stagnant apartment rental market recorded further rises in asking prices, up 2.1 per cent on quarter 3 and 15 per cent on the final quarter of 2012.

“Overall, the picture is of a market returning to buoyancy,” she said.

“Rental yields are now stronger, following the year of rental rises, and financing is moving into a steadily more affordable range. This combination augurs well for a strong year in real estate in 2013, based on financial fundamentals and despite all the uncertainty that comes with an election year.”


For more information, please contact:
Sakina Hassanali - Head of Marketing & Research
HassConsult Ltd
ABC Place, Westlands
Tel: +254 020 4446914

 

 

SNAP SHOTS:

  • Stand Alone houses include houses, bungalows, cottages and villas either on their own plot or in a gated community.
  • Property values for stand alone houses have increased by 3.92 times since 2001, a 2.3% rise in the last quarter and a 11.7% rise in the last year. The average price for a stand alone house is currently 34.5 million up from 8.8 million in December 2000.

 

SNAP SHOTS:

  • Town houses include townhouses and maisonettes that are semi-detached or terraced.
  • Property values for town houses have increased by 2.95 times since 2001, a 0.1% rise in the last quarter and a 6.4% rise in the last year. The average price for a town house is currently 19.3 million up from 6.5 million in December 2000.

 

SNAP SHOTS:

  • Apartments include apartments, duplexes and triplexes.
  • Property values for apartments have increased by 2.35 times since 2001, a 1.1% rise in the last quarter and an 5.7% rise in the last year. The average price for an apartment is currently 12.2 million up from 5.2 million in December 2000.

 

SNAP SHOTS:

  • Stand Alone houses include houses, bungalows, cottages and villas either on their own plot or in a gated community.
  • Rental values for stand alone houses have increased by 2.99 times since 2001, a 5.2% rise in the last quarter and a 17.2%% rise in the last year. The average rental for a stand alone house is currently Kshs. 170,469 up from Kshs. 56,959 in December 2000.

SNAP SHOTS:

  • Town houses include townhouses and maisonettes that are semi-detached or terraced.
  • Rental values for town houses have increased by 2.48 times since 2001, a 4.0% rise in the last quarter and a 13.9% rise in the last year. The average rental for a town house is currently Kshs. 106,122 up from Kshs. 42,688 in December 2000.

SNAP SHOTS:

  • Apartments include apartments, duplexes and triplexes.
  • Rental values for apartments have increased by 2.94 times since 2001, 2.1% rise in the last quarter and a 15.0% rise in the last year. The average rent for an apartment is currently Kshs. 68,383 up from Kshs. 21,638 in December 2000.
Talk to us

We can help you

  • Work out your budget
  • Find a property
  • Make an Offer

Speak to our friendly experts
Call +254 729 933955
Click tmcafrica.com