02 Nov 2010
Kenya’s first multi-billion dollar property development on the outskirts of Nairobi is allowing a Russian developer to cash in on the booming real estate market in east Africa.
The Renaissance Group has formed a joint venture with Kenya’s Tatu City to develop a thousand hectares of land on a former coffee farm outside the town of Thika, 40 kilometres north of Nairobi.
The mixed-use development will eventually house more than 60 000 people and will offer commercial and recreation facilities, a football stadium and a range of freestanding houses and sectional title apartment blocks.
So far $100-million has been invested in the first phase of the project and another $250-million has been raised for the second phase claims Renaissance Group chief executive, Stephen Jennings.
He says that growing incomes, particularly among the young people who are moving to the cities, is pushing up demand for housing across all asset classes.
Figures show that the construction industry was the fastest growing sector in Kenya’s economy during the second quarter of this year.
Kenya has a population of 38,6-million people and its economy is projected to grow by 5% this year and 6% next year. Residential property prices in Nairobi have risen by 8% year-on-year according to figures compiled by the Hass Property Index.
Jennings says that Kenya’s political risk factors are falling while the economic climate is improving. “This project will act as a catalyst for further foreign direct investment in the country,” he says.
Readers' Comments Have a comment about this article? Email us now.
About the Author
House for sale in Goedemoed R 1 295 000
House for sale in Soshanguve East R 370 000
House for sale in Silverton R 1 400 000
Townhouse for sale in Norkem Park R 940 000
Apartment / Flat for sale in Grove End R 380 000
Apartment / Flat for sale in South Beach R 360 000
Apartment / Flat for sale in South Beach R 275 000
Apartment / Flat for sale in South Beach R 450 000
Apartment / Flat for sale in Vredehoek R 1 695 000
House for sale in Heidelberg Wc R 160 000
If you are using Internet Explorer 8 or higher, please verify that your Internet Explorer compatibility view settings are not enabled.
For the best browsing experience update to the latest Version of Internet Explorer or try out Google Chrome or Mozilla Firefox.
Please contact our Customer Service Centre for further assistance. Tel. +27 (0)861 111 724