By John Gachiri
Property prices near mega projects have
skyrocketed with land in Lamu almost tripling amid speculation of a
further rise after completion of the Lapsset corridor.
Prof Johnstone Kiamba, a director at the Land
Development and Governance Institute (LDGA), an advocacy group, said
areas where the government is putting up large projects like the port
and oil infrastructure in Lamu and Isiolo are experiencing a property
boom.
“We have seen it happening... just like in Malili,” said Prof Kiamba.
Land prices in Malili, Machakos County went up
after the government bought 5,000 acres from Malili Ranch in 2009 for
the construction of the multi-billion shilling Konza City.
Prof Kiamba said development projects in counties
and the emotional attachment to land are some of the factors continuing
to support high property prices.
Land prices in Lamu have almost tripled as the Lamu Port-South Sudan-Ethiopia Transport (Lapsset) corridor attracts buyers.
“Prices are really going up. An acre that cost
Sh1.5 million is now going for Sh4 million,” Patrick Itumo, a manager at
property firm Badana Investments Ltd said.
He added that saccos, foreign companies and
individual investors are showing huge appetite for land in Barangoni
area in Lamu County.
Lapsset project is expected to pave the way for
other investments and the Government has already assembled a team of
lawyers and bankers tasked with sourcing of about $3.2 billion (Sh290
billion) to fund the Lapsset projects.
Foreign companies have expressed interest in
building berths at the port of Lamu, an international airport, the
Lamu-Isiolo highway, a desalination plant and 850 megawatt gas-fired
power plant.
Mr Itumo said speculators are cashing in on the
high demand at the expense of local land owners and the government which
may be forced to pay a premium for additional land now owned by private
investors.
Property prices have also gone up on Nairobi’s Thika Road, Southern bypass, Namanga Road and Eastern bypass.
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