It is now not abnormal for pieces of land in areas such as Upperhill or Westlands to fetch a price of more than a hundred million shillings an acre. Credit available to the real estate sector is not in short supply. For example, KCB have been advertising a 105% mortgage financing for home loans, and Jamii Bora bank has signed a KES 100 million deal with Shelter Afrique to finance low cost residential housing. Various commentators, such as Wallace Kantai on business daily and Abdiwahid Biriq  on Nation media, have told us that the real estate market is overpriced. Their opinion has been that the high prices are unsustainable and eventually there will be a huge price drop. With the price drop, those holding the properties at the time will be the losers. Both detail the scenarios that would play out when the 'bubble bursts'.

[caption id="attachment_33316" align="aligncenter" width="600"] Like the Roman Denarius Real Estate in Kenya has two sides depending on how you view it.[/caption]

On the other hand, that may not be the case if Companies with the resources and analysts to make the right decisions such as Centum are continuing to bet big on real estate. In deed, other commentators  such as Abacus' Joel Macharia point to an even more promising future. Moreover, other reviewers such as Nathan Luesby of Jenga Web Limited  have said there can no bubble in the Kenyan property market. This is due to the continuous increase in Kenya's population that strains demand on the available housing units. Therefore leading to a conclusion that this is the best time to invest in real estate in Kenya.

In conclusion, regardless of how you view it, being priced out is a normal part of any market. Therefore, if you cannot afford real estate consider other options such as the stock and bond markets.

[caption id="attachment_32887" align="aligncenter" width="540"] If  the price of real estate in Kenya is too high for you, consider investing in the stock market where entry is easier.[/caption]