Daily Nation published an article in September 2017, exploring the use of technology in the Kenyan Real estate market. According to Daily Nation, while the world is moving forward in using technology in real estate to communicate research and make informed decision; the Kenyan real estate market, is not moving as fast.
The article highlighted that technology, especially data, can be used in the Kenyan real estate market to make informed investment decisions. For example, some of the most prestigious areas to buy or rent a house in Kenya right now are Kitisuru or Karen. If you are selling the house how much should you sell it for? If you are looking to construct, buy or rent houses in either Kitisuru or Karen how do you know which will bring the highest return on your investment? Data can answer all those questions.
Data analytics from Data Fintech compares 5-bedroom houses in Karen and those in Kitisuru. The median price of houses in Kitisuru increased by 11.1% between Q3 2016 and Q3 2017 to retail at Ksh 100 million. 5-bedroom houses in Karen also experienced a surge in median prices by 4.1% to Ksh 78 million.
Focusing on rentals of 5-bedroom houses, the median rent price in Karen reduced by 3.6% to Ksh 270,000. Median Rent prices in Kitisuru however went up by 3.6% between Q3 2016 and Q3 2017. This trend shows that there is a higher demand for 5-bedroom houses in Kitisuru as compared to Karen. As of Q3 2017, the one-year rental yield for 5-bedroom house in Kitisuru stands at 4.7% as compared to Karen’s 3.9%.