Centum Real Estate (Centum Re) plans to initiate a sustainable housing project, introducing units starting at a minimum of Sh1.9 million, as part of the company’s strategy to expand its presence in the homeownership market.
The housing project, located within the Mzizi project at the Two Rivers complex, will offer a range of units, including studio apartments priced at Sh1.9 million and three-bedroom units at Sh10 million.
The growing number of investors entering the affordable housing sector has led to a gradual decrease in unit prices, making them more accessible to a larger portion of the middle class, a segment traditionally excluded from the housing market.
Other developers, such as Edermann Property Limited, are also offering competitively priced units, with three-bedroom apartments currently available at Sh2.95 million each.
The move towards affordable housing aligns with the average mortgage size in Kenya, which is approximately Sh9 million, although it can extend to over Sh30 million.
A house valued at Sh9 million would result in a monthly repayment exceeding Sh100,000, even with a favorable interest rate of 13% and a 15-year repayment period.
Centum Re’s housing project, financed through a Sh3 billion ($20 million) loan from the International Finance Corporation, aims to construct a total of 2,000 units, contributing to the company’s growing market share in Kenya’s homeownership sector.
The IFC loan, repayable over seven years, follows Centum Re’s successful repayment of a Sh3 billion bond used for previous housing projects. The initial phase of 300 homes is well underway, with completion expected by July next year.
Centum Re’s parent company disclosed a profit of Sh518.8 million in the half-year ending September, marking a positive turnaround from the Sh267.9 million loss recorded the previous year.
The company specializes in mixed-use developments, incorporating both residential units and commercial buildings, including offices. With only 21.3% of the urban population in Kenya owning their homes, there is substantial market potential for Centum Re and its competitors.
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