Houses For Sale Along Thika Road

Fourways Junction is easily accessible from Waiyaki Way, Thika Road and Nairobi City Centre. The Airport is easily accessible from the Northern Bypass. Fourways Junction is strategically located 10 minutes from the UN HQ and US Embassy in Gigiri. Fourways Junction is a state of art suburb with a mix of Cluster Houses, Apartments, Office Blocks, A Shopping Mall, A 3 Star Hotel, A BPO Park (Business Processing Outsourcing), A Nursery, Primary/Secondary School, A Retirement Home and fully fledged country club. Click on the image to view virtual tour PRICE SCHEDULE APRIL (2016): Fourways Junction Phase 2 Agent Suraya Sales Ltd (Fourways Junction) Suraya Sales Limited is a subsidiary of Suraya Property Group incorporated in 2006. It is the duly appointed…The requested URL /residential/residential-for-sale.html?limitstart=0 was not found on this server.By Cytonn Research Team, August 30, 2015 Kenya has grown through the years to become East and Central Africa’s business and financial centre.
Houses for sale in upcoming areas of Nairobi and its metropolis, where growth is centred, are highly sought after. The diverse population lends itself to providing a truly cosmopolitan city serving as the regional headquarters for some of the world’s largest corporations such as General Electric, Hewlett-Packard, Google, & Coca-Cola. Growth in the economy has had a profound positive effect on the middle class, who have benefitted greatly on the back of improved economic conditions, which has resulted in increased demand of residential housing outpacing market supply. Kenya’s residential property market in middle income category has seen a price surge resulting in the market outperforming most other asset classes in Kenya over the last 10 years. As can be seen below, the real estate sector has outperformed public markets investments in fixed income and equities, while our development in Ruaka, “The Alma”, is delivering above market returns of 28% and 41% for completed units and developer equity, respectively.
As highlighted in our Cytonn report #33 last week, there is a huge opportunity in providing housing for the low to middle income bracket in Kenya, especially along the bypasses, which have opened up development opportunities. Development opportunity in satellite towns is driven by: The chart below shows the appreciation of land prices in satellite towns across Nairobi and its metropolis: *Satellite market data sourced from HassConsult report. We have picked Ruaka as one of our key areas of focus for developments because it is one of the few areas in the Nairobi metropolis that provides a secure, accessible, and convenient location with significant potential for attractive financial returns. Ruaka is situated 20 minutes drive away from the Westlands district, and a few minutes from Gigiri, which is where the UN headquarters are located. Essentially, it offers an opportunity to not only own and enjoy a home, but also a location that provides an attractive real estate investment opportunity, driven by 6 main factors:
The above unique factors have seen land prices in Ruaka increase 5 times over the last 7 years, and Ruaka is now the most expensive satellite town in Kenya to purchase land. The skyline of Ruaka, once a small rural centre better known for its security challenges, has changed more rapidly than adjacent satellite towns in the last five years, which has led to the increase in land prices. Homes For Sale Crestview School District OhioThe appreciation of land prices in satellite towns could be attributed to increased development potential due to factors such as:Beauceron Puppies For Sale In Wisconsin However, despite the attractiveness of Ruaka, it faces two key challenges:Kohler Bath Spout Leaking When taking into account the development potential in the area i.e. (i) relaxed zoning, (ii) access to amenities, (iii) proximity to international organisations, and (iv) improved security, as well as the challenges of infrastructure and lifestyle, the most appropriate residential concept is a high-density mixed-use residential development, with a commercial centre and lifestyle facility in the development.
This would be combined with market leading facilities management to offer services to those who wish to purchase units for investment, as well as to cater for those investors in the diaspora who cannot actively manage their development units. Residential communities are comprehensive developments, which encompass a comprehensive clubhouse, restaurant and light retail and commercial conveniences. Having chosen Ruaka as one of the locations where Cytonn Real Estate will focus on, we undertook market research to quantify the return potential for residential community developments in the area. We carried out market research, targeting at finding four key assumptions for residential community developments in Ruaka: all values in Kshs unless stated Based on our consultations with quantity surveyors, a well-finished unit in Ruaka should cost between Kshs 35,000 to Kshs 40,000 per square metre in constructions costs, giving a mid point of Kshs 37,500 per square metre. Given the average plinth area of about 103 square metres, then the average construction cost per unit, excluding land, is about Kshs 3,860,000, using a mid range Kshs 37,500 per SQM of construction costs multiplied by 103 SQM.
It is important to note that our research analysts did not come across any 1-bedroom development in Ruaka, however 1-bedroom apartments are present in Cytonn Real Estate’s development, “The Alma”. Research and sentiment in the Ruaka market showed there was appetite for 1 bedroom housing for (i) professionals who have just begun working and are looking for rental accommodation, and (ii) diaspora investors who wish to invest in real estate in the region. Rental Yield: Given a monthly rent of about Kshs 35,000 per month, that works out to be Kshs 420,000 per year. Given that house prices are about Kshs 8,470,000, it means that the gross rental yield for Ruaka should be about 5% p.a., consistent with residential property yield expectations. Total Return: Rental Yield + Projected Capital Appreciation. Over the last 7 years, the annualized total capital appreciation has been 23% per annum. Given (i) the on-going infrastructure developments, (ii) upcoming retail and commercial facilities, (iii) close proximity to the bypass, and (iv) zoning changes going on in Ruaka, the next 5 years should show equal capital appreciation, so we estimate projected capital appreciation of at least 23% p.a.
The aforementioned rental yield of 5% p.a., combined with a 23% projected appreciation brings a total return of 28% per annum for completed units over the next 5 years. Development Return: Developer return on investment, including financing costs, for those willing to invest equity into the Ruaka development gives a 41% IRR, which works out to an annualized return of 15% above the completed units return of 28%, which is very attractive for investors given that listed markets returns over the last 5 years have been about 13% per annum. Cytonn’s upcoming development in Ruaka, “The Alma”, is a comprehensive residential development. The development encompasses 284 residential units, with 1, 2 and 3 bedroom options set across a 3-acre parcel of land. It will also encompass (i) a commercial facility to provide basic necessities to the residents, (ii) a lifestyle clubhouse for residents, (iii) high levels of security, (iv) a borehole and sewer treatment facility, and (iv) round the clock security.