Real estate developers in Mombasa county are showing signs of renewed interests by investing millions of shillings in high-end luxurious apartments due to rising demand.
The demand has attracted foreign investors who have shown appetite to develop high-end apartments on Indian Ocean seafronts. As a result, Luxurious holiday apartments are increasingly shaping up in parts of Shanzu, Mombasa, with investors shifting to modern western designed apartments.
Angeo Group Property Limited, an Australian company is among the latest entrants in the Kenyan property market. Last week, the company launched construction of houses in Shanzu to take advantage of the renewed demand for luxury homes.
Sitting on 0.8 acre, the project —dubbed Georgia Apartments — will cost about Sh260 million. It will be built within the vicinity of Go-Kart Severin Beach hotel.
Speaking during the ground-breaking ceremony, Angeo Group CEO Veronica Deboer said the 28 apartments would take approximately 24 months to complete. The apartments target both middle class and the rich clientele.
The developers say the inquiries signify improved client perception of the Coast region, which has been struggling with low tourism arrivals and insecurity in the last few years. In 2017 and 2018, property prices in the region dipped by an estimated 20 per cent, with investors adopting a wait-and-see trend after the wave of terror-related incidences witnessed in the region.
Fears over the 2017 General Election also negatively impacted on the sector. However, developers are now optimistic as inquiries for holiday homes, buy-to-let, rental and commercial properties rise in the second quarter of 2019. “Demand for new, western-type of designs is what pushed me to put up this multimillion project. The Kenyan property market is promising and the demand is high,” said Deboer.
She added that the firm targets both rich and low-income earners and has come up with a unique way of designing the projects to optimise on limited land. The apartments are an interpretation of modern living consisting of spacious three-bedroomed units (two-en suites) with a roof top swimming pool, a servant quarter and changing rooms.
The project will be undertaken under the partnership of NIC Bank’s Harbour House Branch in Mombasa. According to NIC bank Harbour House branch team leader, Daniel Mwise, demand for properties at the Coast is pushing investors to seek mortgages in lending institutions, though some banks are shying away due to the interest rate capping.
At least 30 per cent of property developers in Mombasa are seeking mortgages in the first quarter of the year. Mwise says NIC Bank’s mortgage interest rate stands at 13 per cent and is in accordance with set regulations. “The big challenge is that people fear both high and volatile interest rates when seeking loans. This is making investors shy away from lenders or opt for other kinds of businesses to invest in,” said Mwise.