Wednesday, November 12, 2014

Architectural designs changes fortunes in Kisumu real estate industry

Constructions with foreign architectural designs are developing across many real estates industry in Kenya. The magnificence of that is some remnant of the buildings in Kisumu real estate, used to be considered posh and luxurious in the recent times are now being wiped out of existence. A big number of real estate investors; home buyers and tenants in these days do not just look at a location, and most importantly the price as major factors to consider during buying or renting a home.  Nowadays people take a good look at security matters and building designs just to have a little more ambience in there preferences.
For example a spot-check in Kisumu municipality indicates that majority of residential houses constructed more than three decades ago are now being demolished and being replaced with the latest ultra-modern structures within the city. The enforcement of zoning regulation within the local authority is mainly contributing to the latest mode of architectural designs not only in Kisumu real estate but also in urban settlements. This drift has not spared the institutional housing schemes in Kisumu region, for example, estate like Kenya-re, pipeline, Kenya railways, Tom Mboya and even Robert Ouko are finding it very rough to compete with the emerging developments of bungalows, maisonettes, town houses, flats etc. consequently the rental and land prices here exceeds the others overwhelmingly.
Players in Kisumu real estate industry conversely view this as very healthy to the construction sector since it generates more room for competition. Mr. Onyango, the legal consultant for Kisumu property says that the new architectural designs will help boost property value and magnetize urbane clients with higher buying power and therefore higher rental returns.
A good number of property developers and owners are coming to terms with this vicious reality and now opting to renovate and modernize their old properties so that they can also compete with the new architectural designs. For example, more that Kshs 40 million has been used to bring back to life Nyalenda railways estate. For instance, a three bedroom house which was around Kshs.5000 in rent is now ranging from Kshs.25000 going upwards, that is an increment of about 500 per cent. Onyango says that the hidden beauty secret of this is that; the tenant who can afford to pay high rent also has a low default rate of rent payment. 
This competition on architectural designs facilitates for local authorities to continue enforcing zone regulations and slam messy development in the region then at the same time, property investors continue to gain more from the value appreciation. “the surfacing of new structural designs do really hinders the city planning in several ways, categorically it keeps the planners on toes and also create room for durable buildings” says Evans Otieno, a Marketing Executive at a real estate firm.
“Most home owners are in search for sophistication; these are delineated by structural a design that complicates the need to enhance security and incorporate technological gadgets, while at
the same time taking into consideration the climatic conditions. A house
installed with pay TV, alarm system and CCTV will attract clients more compared
to just a standard structure,” says Otieno.
A town planner in Kisumu real estate industry says new zoning
regulations will help create sustainable real estate development without the

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