Kenyan government to build 30,000 homes in low-cost housing initiative
The initiative is part of President Uhuru Kenyatta's big four agenda.
The low-cost housing project aims to put up 5,000 homes in Nairobi’s Shauri Moyo estate, 20,000 in Makongeni, 3,000 in Starehe and 2,000 in Park Road estate, a move realtors say will greatly reduce rental prices.
“There are some markets that are charging unnecessarily higher. There will be a correction of rentals,” said Johnson Denge, a senior manager for regional markets at Cytonn Investments.
Under the longer term housing plan, Mr Kenyatta’s government has pledged to offer private developers about 7,000 acres of public land.
HassConsult research and marketing manager Sakina Hassanali on Thursday said that the planned massive housing project will cause more efficient use of public land with the potential to significantly shift pricing.
“Land in Nairobi contributes a significant portion of the unit cost of a house and offering developers of affordable housing free land, makes real the likelihood of prices easing on the apartment market,” said Ms Hassanali.
Currents statistics indicate that six out of every 10 Nairobi residents live in informal settlements while the current deficit for housing in Nairobi stands at 1.85 million units.
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