Nanyuki could be the area to head to in the Mount Kenya region for you, if you are looking good good returns in rental yields. This is according to report from Cytonn Investments released on Monday.
Over the last five years, the town in Laikipia County has witnessed increased real estate activities driven by tourism.
“The town… acts as a major tourist circuit to Mt Kenya and the Northern Region, enhancing demand for hospitality services, which continues to promote the hospitality sector,” the report.
“Nanyuki real estate market recorded an average rental yield of 4.7 per cent for the residential sector, 7.6 per cent in the commercial sector and a capital appreciation of 4.7 per cent in the land sector,” the report read in part.
Growth of Small and Medium Enterprises (SMEs) has also been cited as a reason for the positive real estate outlook. The informal sector is estimated to constitute 98 per cent of business in Kenya, contributing to 83.4 per cent of jobs as per the 2018 Kenya National Bureau of Statistics Economic Survey.
Despite the factors supporting the real estate sector in Nanyuki, the sector continues to face challenges which include lack of structured planning regulations. “The town lacks updated structured planning regulations outlining areas zoned for commercial, residential and special needs. This is likely to lead to urban sprawl in the town and thus reduced land use maximization,” added the report.
The Laikipia County Government is, however, working on revising the zoning regulations to formulate land use standards, zoning schemes and ordinances for all urban settlements in the county,
Residential housing development in Nanyuki is, however, nascent, with most of the estates having existed for less than three years.