Kenya's retail property is most sought after growth markets

Posted On Wednesday, 13 August 2014 08:21 Published by
Rate this item
(0 votes)

Kenya's retail property market is fast becoming one of the most sought after growth markets for South African real estate firms and retail companies, said Org Geldenhuys, MD of property development and marketing company, Abacus DIVISIONS.

 Org Geldenhuys

"It is definitely a popular market for South African companies who realise they can attain high levels of growth in Kenya- perhaps recording higher returns than the local market."

What has had an influence on this development is the growth of Kenya's middle class. In 2008, 28 per cent of Kenya's population was made up of its middle class, and according to a McKinsey report, Africa already has more middle-class consumers than India.

With a growth forecast of over five per cent by 2014, Kenya is recording a rapidly-growing middle class, together with a relatively untapped retail real estate market.

Because of this, a number of South African retail firms have selected Kenya as a potential robust market and a new one at that.

One of the other drawcards is that, from a macroeconomic space, the country is quite stable – with Kenya able to brag that its currency is projected to be stable against the dollar. "This goes a long way to allay investor concerns," said Geldenhuys.

Commenting in CNB Africa.com, Raphael Mwito, development manager at Mentor Management in Kenya, said: "The central bank is on top of the monetary policy, the treasury is on top of the fiscal policy. The economic growth story is positive, the other positive is a middle class that is growing so rapidly and disposable incomes are really growing. The disposable income growing has a direct impact on how much people can spend."

Commenting further, Mwito said that despite Kenya having one of the strongest and largest economies on the continent, there are a limited number of shopping malls.

Last modified on Sunday, 17 August 2014 11:20

Most Popular

Residential sectional title sales again on the rise

May 27, 2021
Andrew_Golding_Golding_PropertyGroup
Over the past 15 years, the sectional title market in South Africa has become entrenched…

Ongoing property market uncertainty makes the right finance partner key to extracting value

May 26, 2021
Claire Denny
Results from the listed property sector in 2020 showed property values reducing by an…

Pick n Pay and Fortress co-invest in a super distribution centre development

May 26, 2021
Fortress_Pick_n_Pay
Fortress REIT announced that their biggest logistics development to date was signed with…

Exemplar REITail declares final dividend of 49.07 cps and announces 100% distribution

May 25, 2021
Mall of Thembisa
Rural and township retail specialists, Exemplar REITail, have declared a final dividend…

East Rand Mall will soon deliver the first phase of its major taxi rank upgrade

May 26, 2021
Phase 1 upgrade to the taxi rank at EastRand Mall
The first-phase upgrade of East Rand Mall taxi rank in the retail heart of Boksburg,…

Please publish modules in offcanvas position.