Comprehensive real estate valuation Services

Whilst difficult to measure accurately, non residential development levels in Nairobi have been steadily rising over the past 3-4 years. The purpose built market in Kenya is limited, making the majority of construction speculative. Despite low vacancy rates, most occupiers will usually only commit to a building as it nears practical completion or is finished.

Tenants tend to be cynical about developers’ time and quality statements and calculate that the threat of unoccupancy provides a bargaining lever as a scheme nears completion. Reflecting inflation, labor costs and raw material price increases, construction costs in Kenya have increased steadily through this decade, including the recessionary years of 1992/3. property valuers perth before buying or selling process of property with affordable prices.

The contractor sector is well developed and dominated by Asian interests. Construction and rental prices have been converging and some developments may prove to be uneconomic at the level of specification planned. From the Estate Agents Act, commercial letting fees to agents are benchmarked at 7.5% of the first year’s rent with market competition typically bringing this down to 5%.Sale fees, paid by the vendor, are usually set at around 1.25%.Whilst not statutory in all circumstances, an annual valuation cycle has become the norm for major funds and investors.

As in most African nations, the property management sector is the process of growing and evolving. The institutional community is currently split on the issue of management in- house or management via third party service providers. Historically, in-house management has often been preferred in the interests of cost control and confidentiality. However, this attitude is gradually giving way to a more commercial view which sees a proper and direct link between value retention and enhancement and efficient, cost-effective asset management.

The management community is growing and strengthening in consequence, although a service that goes beyond rent collection and house-keeping is not yet commonly understood. Less regulated and less well supported is the emergence of a growing market in corridor developments along major route ways.