There are many different ways to invest in real estate. The most prominent ones include of purchasing homes and commercial property, leasing office space, purchasing land, and investing in Real Estate Investment Trusts (REITs).
Apartment and commercial real estate purchases should only be made by investors with a longer investment horizon than five years.
For investors, real estate companies like Vaal create residential and commercial properties. The cost of residential houses varies with respect to where they are located and the facilities they offer.
There are many different ways to invest in real estate. The most prominent ones include of purchasing homes and commercial property, leasing office space, purchasing land, and investing in Real Estate Investment Trusts (REITs).
Apartment and commercial real estate purchases should only be made by investors with a longer investment horizon than five years.
For investors, real estate companies like Vaal create residential and commercial properties. The cost of residential houses varies with respect to where they are located and the facilities they offer.
Additionally, this is true for commercial properties. The investor will mostly profit from capital appreciation when buying these types of real estate because the apartment’s market value will rise with time. One of Kenya’s top real estate developers, Vaal’s properties are in sought-after areas with rising demand as the nation develops. The same holds true for business properties.
Leasing and renting homes is an entry point into the Kenyan real estate market for investors with shorter investment horizons. Investors can produce rental revenue through leasing and renting.
The bulk of the middle class in Kenya prefers to rent rather than buy a home, making the country predominantly a rental market. This is because it’s affordable. As Kenya’s middle class continues to grow, rental revenue is anticipated to become one of the ways to produce returns throughout time. Investors have the chance to profit from both long-term capital growth and short-term rental revenue by purchasing properties to further rent or lease them.
The third way to invest in Kenyan real estate is by buying land. Land has the potential for long-term capital appreciation because it remains undeveloped, in contrast to residential and commercial assets.
The value of land is rising exponentially as Kenya continues to urbanize, providing an opportunity for investors.
Given its dominance in real estate, land’s capital appreciation is simple, and this is not likely to alter in the near future. Investors who choose undeveloped land are likely to make significant profits because they may either develop the site for their own housing project or sell the land outright to developers.
Last but not least, investors might purchase Kenyan real estate through REITs. In order to finance the creation or acquisition of real estate assets, REITs are a type of investment vehicle that aggregates money from investors.
REIT investors receive returns from the money made from the assets the REIT manages. Due to its management’s primary concentration on all real estate assets, REITs allow investors to diversify their real estate holdings.
Due to their flexibility in increasing or decreasing their REIT shareholdings, investors are able to enjoy competitive long-term returns and liquidity. Investors in Kenyan real estate might think about REITs as a way to enter the Kenyan real estate industry because of its many advantages.
