Global Property Guide

Financial Information for the Residential Property Buyer

Investors who bought properties in Nairobi's prime areas to rent are facing a rise in property prices. The price increase is making it difficult for them to service their mortgage loans, as the rents are usually not enough to cover monthly mortgage payments. 

Property  prices in Kenya started rising five years ago as the economy grew, but rents in many parts of Nairobi have not risen at the same pace as property prices have.

Investors are concerned that the increasing number of defaults might make banks warier of backing real estate development projects.

Experts warn that this could result in an industry crash.

Source