Following the government's decision to reinstate levies payable to the National Environment Management Authority (NEMA) as of this month, construction prices are expected to increase in the upcoming months.
Depending on the degree of risk associated with their projects, contractors will spend anywhere from Ksh10,000 to Ksh40,000,000 on environmental assessments.Kenya (NEMA) | Green Climate Fund"/>
Developers issued a warning that the push for cheap housing will be harmed by the new fees added to the high cost of living, the pandemic's consequences, and the invasion of Ukraine. Rent and selling prices for homes are also anticipated to rise to new heights.
The reintroduction of these levies warned Kenya Property Developers Association (KPDA) chair Ken Luusa, "would make it impossible for developers to deliver on the housing objective, given that affordable housing is part of the Kenyan government's Big Four agenda."
Therefore, in their projects, developers, home purchasers, and tenants must look for less expensive but safer options. Among the possibilities to be thought about are;
According to financial services company EFG Hermes, land value rise was strongest in middle-class (satellites) neighborhoods in 2021.
Land prices rose faster in satellite towns like Ruaka, Donholm, Ruiru, and Juja than in affluent neighborhoods like Karen and Kileleshwa.
The real estate market also saw high demand for land as opposed to home ownership, the latter of which was inflated by construction costs.
The Kenya Bankers Association (KBA) reported on June 28 that "punitive taxation regimes, land rules, stringent compliance, listing charges, and other government policies also hindered the developers' efforts to promote investments in the property market through Real Estate Investment Trusts (REITs)".
Land can be converted from use for agriculture to use for leasing or real estate. There are numerous ways to make money. According to real estate statistics, land purchasers are being drawn to the outlying districts by the prospect of future gains and reconstruction. Therefore, our main goal is to help customers make wiser decisions regarding land ownership.
Purchase Construction Materials in Bulk
Bulk buying helps with cost control and budget management. In addition, contractors can save money by buying in bulk.
There are various advantages to financing material purchases. It eases the strain on your financial flow by providing you up to 120 days to complete your payment. Additionally, it gives you the freedom to go above a supplier's credit restrictions, giving you more room to take on projects.
Additionally, you can lock in prices in advance and save money should prices rise higher.
When a current renter sublets all or a portion of their apartment to another person, this person is referred to as a subtenant.
Most people who are unable to pay their rent on their own should consider this alternative. The majority of these are job searchers moving to new cities and students living in apartments and hostels.
Consider Other Cost-Effective Construction Techniques
Technology is useful in this situation.
Alternative prefabrication building technologies speed up the building process since they are economical and environmentally beneficial.
Prefabrication decreases waste and works more effectively. Other businesses construct the materials, and only what is required is bought and utilized.
Precast flat panel modules and cross-wall construction, thin-joint masonry technique, hybrid concrete construction, flat slab technology, expanded polystyrene panels (EPS panels), and 3D volumetric technology are only a few examples of these approaches.
Prefabricated housing, Insulating concrete formwork (ICF) technique, Insulating concrete formwork (ICF) technique, and Precast foundation technology are other technologies.
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