Land is the fastest growing asset class in East Africa

East Africa's real estate market, particularly the land sector, is experiencing a resurgence, fueled by investments from diaspora remittances totaling a staggering $4 billion as of 2022. This growth is transforming the region's asset landscape, making land the fastest growing asset class. CNBC Africa recently sat down with Ann Kanyuria, Markets Lead at Hyssop Properties, to delve deeper into the real estate outlook trends in Kenya and East Africa. The real estate market in the region has been on a steady incline, with significant improvements evident in various aspects. A surge in property development, construction of residential homes, and the emergence of modern malls in Kenya are reshaping urban centers, attracting both local and international investors. The expanding urban population has led to a surge in demand for housing, particularly high-end apartments, catering to the burgeoning middle-class community eager for quality living spaces. These factors combined have contributed to the remarkable growth and dynamism of the real estate industry in the region. The regulatory environment in Kenya has been evolving to align with the rapid expansion of the real estate sector. Stricter regulations have been put in place to ensure consumer protection and quality assurance in property transactions. Companies in the sector, including Hyssop Properties, are also adhering to self-regulation measures to maintain industry standards and reassure buyers. The focus on diligence in property development, ensuring legal compliance, and delivering value for investment is shaping a more transparent and secure real estate landscape. The interest in land acquisition in Kenya is being driven by various factors, including the need for stable investments in uncertain times, such as the COVID-19 pandemic. Kenyans, both locally and in the diaspora, are increasingly investing in real estate assets to secure their financial futures. The shift towards urbanization, coupled with the decentralization of governance through county administrations, has spurred a sharp demand for housing, prompting developers to cater to diverse preferences, especially among the youth seeking upscale residences. The diaspora market has emerged as a significant contributor to land investments in Kenya, with expatriates keen on acquiring properties back home. The ease of property transactions, transparent processes, and the availability of virtual platforms for remote purchases have facilitated diaspora participation in the real estate market. Countries such as the US, UK, UAE, Australia, as well as neighboring African nations like Tanzania and Uganda, have seen increased interest from Kenyan expatriates looking to invest in land and housing developments in Kenya. Hyssop Properties, like many other real estate firms, is strategically engaging with the diaspora community to enhance their presence and cater to the growing demand for property investments. The property market in Kenya is a subject of speculation regarding a potential bubble burst. However, industry experts like Ann Kanyuria view the current dynamics as a market correction rather than a bubble. The availability of flexible payment plans, financial aid, and government initiatives for affordable housing, such as the Kenya Mortgage Refinance Company (KMRC), are seen as mechanisms to stabilize the market and ensure accessibility to homeownership. While concerns about oversupply exist, the proactive approaches taken by stakeholders in offering tailored solutions for property acquisition aim to mitigate risks and maintain a sustainable real estate market. As the sector continues to evolve, the emphasis on affordability, transparency, and innovation remains pivotal in shaping East Africa's thriving real estate landscape.