The real estate development system was a time bomb. It continued to swell as prices rose. Now that they are reaching a maximum level, people are beginning to see the reality of this time bomb as the number of houses appear higher than the people.
The prices in some parts of the city are becoming lower as they have been reducing from last year. In an article published by the Standard, it points to the ever rising supply as the main reason. There are major factors contributing to this. First, the people are becoming owners of their own homes.
Owning a home through mortgage loans and buying houses is a common thing today. People have bought a lot and have led to the increase in empty rentals. The development of private housing estates like Syokimau, parts of Rongai, Kitengela and Garden Estate among others have led to the reduction of the prices.
Real estate developers find it stretching and unnecessary to develop more when the returns will be low.
This is a common trend in real estate. There comes a time when the houses in development will be more than the people seeking to have the same. The market drops as the rental prices reduce. It is a characteristic of demand and supply. The more the supply the lower the price. It is happening and will likely happen.
If Kenya was developing faster without cases of corruption, the counties would have created much employment to make people move to such rural areas. However, that still remains a dream as the leaders want to eat and not develop.
For the investors, this is the right time to buy the houses. It will come another time when the need for such houses will be high again. It is a rising and fluctuating market. One can be patient and wait for the market to rise again. They will then sell them at a huge profit.