Low income segment misses out on most housing developments
Majority of Kenyans are not on the radar of most initiatives by public and private agencies aimed at increasing the number of housing units to meet growing demand.
To date, most of the projects have addressed the high-end market to a point that supply in the segment is nearing saturation. This is in comparison to the middle and low-income segments, where there are few developments despite huge demand.
Erdemann Property Managing Director John Zeyun Yang said there were big opportunities for both Government and private sector firms to invest in housing for the low-end market segment that he acknowledged had been forgotten by the real estate industry.
“Because of urbanisation, the demand for housing has consistently grown and is now over the one million mark with more than 200,000 units per annum, as per the Ministry of Lands, Housing and Urban Development. The demand for housing is much more compared to the supply.
SEE ALSO :Trump, Pelosi butt heads again but others see possible paths
“The middle and low-income earners have been forgotten, and there is need for the Government and private developers to channel their energy in the provision of housing for this group.”
Mr Yang spoke during the company’s groundbreaking for the second phase of the Great Wall Gardens in Athi River, in which it plans to build 592 units. In the first phase, Erdemann built 2,173 units.
Yang said the national and county governments needed to put in more resources in infrastructure to attract more investors in real estate.
“On infrastructure development, we urge the county government and the local authority to improve the provision of necessary services like road network, water supply and sewer lines.
“Where these services exist, they need to be expanded and/or increased to cater for increased demand.”
SEE ALSO :No space at hospital as referrals increase