Business Daily reported an oversupply in commercial property with Westlands hosting the highest office supply at about 29% per cent of available space. This was apparently attributed to a poor pre let uptake, additional stock available and delays in development.
According to Data Fintech’s Real Estate market data, median sale price for office space in Westlands has declined by 10.3% between Quarter 3 2016 and Quarter 3 2017 due to oversupply. Rent prices are not doing well either with the median price dropping by 2.5%. This shows that growth supply is outweighing the growth in demand. Despite the drop, renting property has a yield of about 9.9% which is higher than residential property in the area.
The Residential market in Westlands has been doing well. According to the data, as of Quarter 3 2017, apartments are the best investment choice, giving both the highest rental yield at 7.7% and overall gross return of 27.7%. Investors should invest in 3 bedroom apartments in Westlands.
The study has been released by Data Fintech, based on data collected on various online classified platforms in Kenya.
Read more here: Real Estate: Property in Westlands_Kenya (August 2017)