The COVID-19 pandemic is an unprecedented phenomenon that has transformed the real estate sector for good, with investors, homeowners, and developers all being forced to adapt and change the way they carry out real estate investments.
At the start of the pandemic, footfall traffic to sites immediately declined as consumers avoided crowded areas due to social distancing directives brought about by the government, which meant real estate developers had to engineer new ways of showcasing their properties to the market. However, despite the challenges brought about by the pandemic, the industry has witnessed positive implications. More so, middle-income to high-income households have been buying real estate units in anticipation of capital appreciation in the future. Investment in residential homes provides a sense of security during shock situations, like the Covid-19 pandemic.
Real estate investors and homeowners now expect more from their real estate investments. They now demand “live-work-play and invest” environments, known as master-planned developments, and Superior Homes Kenya, East Africa’s first and best master-planned estate has been on the frontline developing master-planned gated communities. Superior Homes Kenya now offers investors, homeowners, and diplomats an opportunity to invest in Pazuri at Vipingo, a master-planned residential and holiday estate strategically located in Vipingo. The master-planned development gives homeowners the option of putting up their houses upon rental platforms as a way of supplementing their incomes, whenever they are not using the house. All the bedrooms are ensuite; hence they can be used independently. The development is a great investment project, especially during these COVID times, as it is a “live-work-play and invest” estate. It allows one to work from home in a safe and conducive environment and it doubles up as an investment that earns you some extra income.
Developers, on the other hand, have been forced to adapt and change the type of housing they offer their clients. Developers must show environmental resilience to attract investment in real estate.
Furthermore, real estate, which generally involves the environment in which we all live and work, plays a vital role in every aspect of the economy, society, and environment. Businesses and societies are critically dependent on the availability of offices, shops, factories, housing, and many other forms of real estate. The commercial real estate sector delivers and manages the infrastructure needed for entrepreneurship to thrive. Real estate is a fundamental source of employment and economic growth, and a major contributor in addressing two critical challenges of our time: providing “live-work-play and invest” developments and functioning cities for a growing urban population, including offering work and office space for businesses of all sizes. It is evident the commercial real estate sector has faced unfamiliar challenges as individuals moved towards a different kind of office space. Nonetheless, office space has continued to be on-demand as companies continue to grow.
On the bright side, consumer demand will shift towards more efficient properties and specifically, master-planned gated communities such as Pazuri at Vipingo by Superior Homes Kenya, especially since the lockdown experience has revealed the downsides of un-planned estates. When it comes to residential properties, where people will likely live and work intensively from now on thanks to remote working, the lack of flexible spaces and efficient living environments is set to drive new demand towards master-planned estates.
The world is already experiencing a rising demand for high-quality properties that offer a safe, efficient, and healthy living and working environment for individuals and families.
In conclusion, the Kenyan real estate sector has remained attractive to developers and investors throughout the pandemic, despite the challenges brought about by the Covid-19 pandemic, and has proved resilient in hard times. Over the long term, real estate remains a highly attractive asset class as it continues to offer good risk-adjusted returns. Hence, the real estate sector remains and will always be a buyers’ market despite the challenges brought about by the COVID-19 pandemic.
In all honesty, the real estate sector was already under pressure pre-pandemic, and the virus has simply highlighted the resilience of many of its sub-sectors as well as its future opportunities. So, do not be too quick to forego that real estate investment you have been thinking of. There will always be a market within a market!
