Property ownership is no longer restricted to the rich as developers are now selling rooms, popularly known as bedsitters to those who cannot afford amounts for bigger units.
Sectional ownership allows a person to own such units as part of the larger scheme, and they can now be acquired from as low as Sh500,000 either for living in or renting out.
Among companies that have tapped into this market is Suraya Property Group who have developed bedsitters for sale in their Sucasa Development, targeting first time home buyers.
Sue Muraya, chief executive said in a past interview that they have build homes that cost as low as Sh900,000 within their Sucasa models in Mlolongo consisting of bedsitters, one and two-bedroom apartments which target young home buyers.
In Juja, Urithi Housing Co-operative Society Ltd is also developing market with bedsitters. These are priced at Sh550,000. “For investors who opt to rent out, we will be managing rent collection on their behalf and deposit their money in their respective accounts,” said the society in a brief on its website.
In Nairobi, bedsitter rents range between Sh5,000 and Sh10,000 per month subject to location and the extra features offered. Depending bedsitters on the maintenance costs, this could offer a decent return for the investment.
Others have opted to use a different model but still utilising sectional ownership. Francis Gichuhi of a4architects said they plan to build a 30-room hotel near Kikuyu Town on the southern bypass where investors can buy rooms.
“Each room will cost Sh2 million.
The management then comes in and manages and you are given a monthly amount,” said Mr Gichuhi.
This, he added, offers a better return as income from the hotel is likely to be higher than that of rental units.