Deciding where to buy an apartment can be grueling task. To help, Data Fintech and Buyrent Kenya conducted a study that looked at the performance of apartments in Riverside versus those in Parklands.
According to their analytics, between Quarter 2 of 2016 and Quarter 2 of 2017, the median price of a 3-bedroom apartment in Riverside increased by 8% to Ksh 27 Million. Parklands on the other hand increased by 4% to Ksh 24 Million. Consumers seem to prefer apartments in Parklands, with its effective demand being higher than demand of apartments in Riverside.
Due to the elections, the effective demand rate of apartments in Parklands dropped by 15.8% to 0.84 while those in Riverside dropped by
25.4% to 0.53.
For investors wondering where to invest, Data Fintech’s recommendation would be to buy an apartment in Riverside rather than Parklands, as the yield on a 3-bedroom apartment in Riverside is 7%, higher than those in Parklands.
Last year, a prestigious real estate firm in Kenya announced plans to build apartments in Riverside. The apartments would be named Riverside apartments and would have an array of Studios, one, two and three-bedroom apartments. It seems that these plans have coincided nicely with investors currently looking for opportunities.
Read more here: Investment 101 – Real Estate – Riverside vs Parklands