Author: A4KENYA

Residential Plots along Thika Road.
With the recent completion of Thika super highway, the travel time taken form Thika to Nairobi CBD has reduced to less than 1 hour.
Travel time to Thika road suburbs such as Kahawa Wendani, Kahawa Sukari, Githurai and Zimmerman have reduced to less than 30 minutes.
Compared to Ngong and Mombasa road, there is a huge difference in terms of time saving. Ngong road, to cover 25km to CBD takes about 2 hours, same as Mombasa road.
Waiyaki way , Kikuyu town, 25km awayf rom CBD takes only a few minutes to get to Nairobi CBD.
Most convenient areas.
Along Waiyaki way,Kiambu road and Thika super highway, these areas pose as the best for people working in Nairobi CBD.
The travel time is over 200% shorter than the rest.

Plots cost along Thika road.

The land value is highest closest to Nairobi CBD then reduces as it approaches Juja town then increases as it approaches Thika CBD.
Price per acre from Nairobi CBD to Thika town near main tarmac road for commercial development.
Nairobi CBD kes 300m
Ngara. kes 240m
Garden Estate. 40m
Kasarani.100m
Kahawa.30m
Ruiru. 30km to CBD. 20m
Juja.15m
Thika town.30m

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Pooling Resources to Invest in Real Estate in Kenya.

Kenyan land cost continues to appreciate annually at over 20%. This means that the cost of housing continues to grow higher hence being out of affordability for many Kenyans.

Assumption.

Investor with kes 800,000.

With this amount , an investor can join 11 others here to make 12 members and each contribute kes 800,000 to own a 20m2 spacious bedsitter in an area where land cost is kes 1m per plot.

These are generally areas such as Rongai, Kitengela, Ruai but between 1 to 2 km from main tarmac road.
In such areas, a bedsitter can rent for kes6,500 per month.

The investor has an added advantage in that they can develop up to 4 or 5 more levels above their units for future rental income.

Investor with kes 900,000.

With this amount, an investor can be able to join 11 others and buy land worth kes 2m per 1/8th.
Such land will be located closer to the tarmac road in Rongai, Kitengela, Ruai, Kiambu, Juja etc.

Rental income from such bedsitters are in the range of kes 7,200 per month to enable a 10% annual ROI.
4 or 5 other units can be stacked up vertically in future to increase investment.

Investor with kes 1m.

This budget will enable 12 people to purchase a 3m per 1/8th plot and construct bedsitters.
A 3m eighth acre plot will be located very close to tarmac in a town such as Rongai, Kitengela, Syokimau, Juja, Kahawa, kiambu, Ngong or Kiserian.

Choice, Location and price of land.

The choice of land will depend on member agreement in the discussion forum here.
www.a4architect.com/discuss/

A potential investor can either start their own discussion topic with request to partner for a certain land price budget in a certain location e.g. kes 2m land along Mombasa road . Other interested investors can then give their contacts in the already started topic.

Ownership.

The 12 people will register a Limited Liability company with 12 directors and 12 shares. Each person will own 1/12 shares.
The LLC can then purchase the land. The LLC will be governed as per existing LLC laws in Kenya.

The articles of association will clearly describe the location and dimensions of each ower within the LLC, similar to the descriptions in Sectional title ownership.

Interested investors can visit www. a4architect.com/discuss/ and register then start a topic or join an existing discussion to give their contact details and views.

Francis Gichuhi Kamau, Architect.
info@a4architect.com
0721410684
www.a4architect.com/discuss/

The involvement of more detailed architectural design, architectural supervision for workmanship and architectural play with shape, color and texture of materials makes the difference between high, middle and low cost/class of construction.

Each building should be designed such that it gets a better Return on Investment for any given location.
For example, land in Lavington costs approx. kes100 to 150m per acre. Therefore, the investment can get good rental returns hence need to spruce up the building with fancy designs and high end finishes.

Likewise, if a high end building is put up in Kayole where rental returns are low, the ROI will not be good.

Mixup of building quality in Kileleshwa.

Of late, a mixup of low cost buildings in high cost areas has started to be seen is parts of Kileleshwa. This is mainly due to clients having little or no architectural consultancy hence poor feasibility studies and budgeting.
The resultant is that the buildings will get low rents which will not cover the high land costs .This can eventually lead to value devaluation for the entire neighbourhood.
For example, if Kileleshwa building quality degenerates to the level of Ngara/Pangani/Eastleigh, which are at the same distance from Nairobi CBD, this means the land value and rent value will also go down.

Kileleshwa land price.

Current land price in Kileleshwa is between kes 90m to kes 150m per acre.
Kileleshwa Police station area is 5.4km from Nirobi CBD.

This is the same distance as Eastleight past Garissa Lodge area towards St Teresa Girls School.
Here land value is also between 80 to 160m per acre but with lower rental returns.This high price is due to sentimental buying by Somalis hence only sustainable as long as Somalis are investing. Once Somalia regains its peace, land values will come down as Somalis go back to their country to invest.

Along Ngong road, same 5.4 km will take you till Adams Arcade area with land price of between 150 to 200m per acre.

Land price in same 5.4km distance from CBD along Waiyaki way and Ngong road is already selling for between 150 to 200m per acre with very good rental returns.
If Kileleshwa ensures that the building developments are of same quality as Adams and Safaricom house areas, developers will enjoy the high land and rental income value same as Ngong road Adams Arcade area and Waiyaki Way Safaricom house area.

If developers in Kileleshwa continue to construct lower quality buildings, land price will stagnate and rental income will be low,same as Eastleigh.

Kileleshwa flats.

These are some of the flats for rent in Kileleshwa. Compare them with the average high, middle and low cost finished flats .

http://www.buyrentkenya.com/beautiful-apartments-in-kileleshwa-githunguri-for-rent-in-nairobi-kilileshwa-65000-kshs-in-kenya-2012~adv422.htm

http://www.patauza.co.ke/property-kileleshwa-nairobi—spacious-3-bedrooms-apartmen-available-in-kenya-pu-19380.html

There is not much difference with the average Middle cost finished flats in Rongai, Kitengela and Kiambu.

Pictorial Differences between High, Middle and Low cost flats in Nairobi.

Notice the difference in shape, materials used and play of colour/texture.

High cost flats.

Lavington.

Middle cost flats.

Rongai, Kitengela.

Low cost Flats.

Kayole, Mathare North.