A view of the Vipingo Ridge, which is among the high-end properties at the Coast. FILE
Developers in the real estate sector in Mombasa, like those in
other parts of the country, are coming up with properties targeting
middle- and upper-income earners, with luxury as their selling point.
They have gone on the offensive, putting up multi-billion housing units
and green projects, targeting the high-end market.
The English Point Marina and Vipingo Ridge golf course in Mombasa are just two examples.
The
sector has also witnessed a shift from hotel accommodation to high-end
apartments since guests, especially local ones, prefer them to hotels.
This is because besides the privacy and comfort they offer, they are
also cheaper.
While beach hotels charge up to Sh20,000
per night per person during peak season, a three-bedroom apartment goes
for Sh40,000 per night and can accommodate a family or group of five.
As
a result, hotel owners are planning to incorporate apartments in their
establishments, or even replace the hotel with high-rise apartments, as
is the case with Ocean Seven, which is being put up at Sun N Sand
resort.
“The development comprises seven towers rising
17 floors with a total of 325 three- and four-bedroom apartments. There
will also be a convention centre, the largest in east and central
Africa,” Sun N Sand Resident Manager Daudi Nyambu said of the project,
which is to be completed in five years.
Coral Property
Consultants Ltd is also developing a six-floor apartment block near the
Kenyatta Beach. Joining these establishments on the beachfront is the
nearly complete Sh500 million Xanadu, which comprises 25 three-bedroom
units and five penthouses.
Even with an apartment
going for up to between Sh40 million, and Sh55 million for a penthouse,
most of the units have been sold, according to Paul Kinoti, a property
agent. He says Xanadu is a development that offers an opportunity for a
“sensational lifestyle on the beach”.
However, there
are other housing projects targeting lower income earners, such as those
being developed by the Kenya Projects Group, a partnership between
investment companies, consultancy firms, savings and credit co-operative
societies, self-help groups and landlords.
The company is building budget homes in Mtwapa, with prices ranging between Sh1 million and Sh1.4 million for a two-bedroom unit; Sh2.5 and Sh3 million for a three-bedroom unit and Sh3.8 million for a four-bedroom house.
The company is building budget homes in Mtwapa, with prices ranging between Sh1 million and Sh1.4 million for a two-bedroom unit; Sh2.5 and Sh3 million for a three-bedroom unit and Sh3.8 million for a four-bedroom house.
“Due
to an increase in population and urbanisation, the Kenyan housing
sector has been unable to provide sufficient, affordable housing.
Motivated
by our commitment to Kenyans and in line with Kenya Vision 2030, which
aims to provide the country’s population with adequate and decent
housing in a sustainable environment, we embarked on a mission of
ensuring Kenyans are able to own a home,” says Anthony Murithi, the
project adviser.
“After extensive research on what is
available in the market, we established that most Kenyans cannot afford
the houses that are being built, with most of them going for Sh7
million. That is why we came up with this idea. We plan to build at
least 300 units, with 144 already completed and sold,” he added.
At
the same time, the owners of old apartments are injecting new life into
the properties by introducing new concepts such as conference
facilities and restaurants as they improve the ambience to appeal to
guests and investors with a taste for luxury.
The
shift is informed by the fact that most people now prefer private
locations for holidays and meetings. Even among those attending
conferences want to be comfortable.
EXCITE THE MARKET
Mr
Brian Mwakesi, general manager at Sunset Paradise Apartments, says they
now have a swimming pool, a gym and private clubhouse. The complex
comprises two-, three- and four-bedroom apartments, with an entry price
of Sh10.5 million for a two-bedroom unit.
“We studied
the market and realised that if we were to attract buyers, we had to
excite the market by infusing the boutique hotel into the apartment. We
are also constructing a four-star restaurant, which was inspired by the
need to make the holiday-rental a perennial business, unlike the holiday
apartments that rely on seasonal business,” says Mr Mwakesi.
This
market has become so lucrative that investors are no longer selling
apartments. Instead, they are targeting conferencing, which attracts
more money.
In Diani, Kwale County, for instance, Ms
Regina Mwangi, the general manager at Diani Place, which was put up at a
cost of Sh200 million, says the units are not for sale.
“We
have 21 fully furnished apartments and conference facilities. Our
target market is corporates and other people who wish to hold meetings
in an exclusive environment,” she said, adding that while they offer
daily weekly, and monthly rates for conferences.
The
real estate and tourism sectors at the South Coast are also set for
transformation after the government announced that the construction of
the long-awaited Dongo Kundu bypass would start soon. The bypass, which
has been in the works for more than 30 years, has been hailed as the
solution to the congestion on the Likoni ferry, which is blamed for the
underdevelopment of the South Coast.
With more 300,000
people and 5,000 vehicles using the channel each day, the Kenya Ferry
Services (KFS) has literally rin out of options on how to address the
problem of ferry breakdowns and delays.
THE BYPASS
Despite
the allocation of Sh1.3 billion for the purchase of two new ferries
during the 2015/2016 financial year, which is expected to ease pressure
on the existing vessels, tourism stakeholders believe that it is the
bypass that will solve the problem.
“Tourism in the
South Coast has never achieved its potential due to the challenges the
Likoni channel poses and the bypass is long overdue.
We
in the tourism industry believe that the road is the key that will
unlock the potential of Ukunda and Diani,” Sam Ikwaye, the executive
officer of the Kenya Association of Hotelkeepers and Caterers (KAHC)
said, adding that the bypass would also encourage investors in the
sector, since they were shying away from putting their money in an area
faced with serious transport problems.
“While over the
years we have received numerous complaints by guests who miss flights
after being delayed at the crossing, cancellations of major events in
Diani hotels have been blamed on the inconveniences at the ferries,” he
added.
According to property developers, the road
will lead to increased value of properties in the area. The south coast
has generally experienced low investment in property, a situation that
has been blamed on accessibility.
However, players in
the sector are concerned over the state of the land registry at Kwale
County, which they say is unable to cope with the current demand by
developers trooping into the county following prospects brought about by
the development of the bypass.
“Investors have started
making inquiries of how they can buy land in Kwale County because they
know the area will now be accessible. We expect prices of land to
appreciate by more than 100 per cent in the next three years,” said
Kenya Property Developers Association (KPDA) Mombasa chapter chairman
Mwenda Thuranira.
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