The Central Bank of Kenya (CBK) forecasts a 6 percent growth for Kenya's economy in 2024, propelled by increased agricultural output and expansion in the services sector. CBK Deputy Governor Dr. Susan Koech revealed that the bank anticipates a growth rate of 5.5 percent in 2023, with a subsequent rise to close to 6.0 percent in 2024.
As the economy thrives, the real estate market is expected to experience shifts in demand, investment opportunities, and development trends. This article explores how Kenya's projected economic growth in 2024 could impact the real estate sector.
One of the primary effects of a thriving economy is the increased demand for real estate properties. With a 6% growth forecast, Kenya is likely to witness a surge in demand for residential, commercial, and industrial spaces. As businesses expand and consumer confidence strengthens, the need for office spaces, retail outlets, and housing units is expected to rise. Urbanization driven by economic growth will further fuel the demand for housing in cities and urban centers, prompting developers to cater to the growing needs of the population.
Economic growth often correlates with an appreciation in property values. As Kenya's economy expands, property prices are likely to escalate, particularly in prime locations and areas experiencing rapid development. Investors and homeowners can expect higher returns on their investments as property values appreciate.
Additionally, a thriving economy attracts both domestic and foreign investors to the real estate sector. Kenya's projected 6% economic growth in 2024 is expected to bolster investor confidence, resulting in an influx of capital into the real estate market. As we read in our previous article, “Kenya Leads as Africa’s Investment Landscape”, Kenya emerged as the top investment destination in Afric, according to the latest Africa Investment Report 2023 by UK-based research firm Briter Bridges. This economic growth and it’s in succeeding developments present lucrative investment opportunities for those seeking to capitalize on the country's economic momentum.
Dr. Susan Koech highlighted that despite global uncertainties, Kenya's robust growth has persevered and is projected to continue surpassing both global and SSA averages throughout 2023 and 2024. “This resilience underscores the diversified nature of the economy.” As the country progresses towards achieving its economic goals, stakeholders in the real estate industry must remain vigilant, adapt to the changing market dynamics, and seize the opportunities presented by Kenya's economic growth trajectory.
