Housing transactions surge as real estate firms tap expat market

Kenyan real estate agents are increasingly turning to the large expatriate population as a key market for land and property transactions.

With more than three million Kenyans currently living abroad, real estate companies see a huge opportunity to attract investment from this lucrative demographic group.

Many Kenyans living abroad Connect with them They are looking for ways to create wealth at home.

According to a report by the Central Bank of Kenya (CBK), remittance inflows totaled $371.6 million (Shs47.8 billion) in June 2024, compared to $345.9 million (Shs44.6 billion) in the same period last year, an increase of 7.4 percent.

“Cumulative inflows for the 12 months to June remained stable at $4.535 billion (Sh584 billion), compared to $4.017 billion (Sh518 billion) in the same period of 2023, an increase of 12.9 per cent,” the report noted.

“Remittance inflows continue to support the current account and foreign exchange markets. The United States remains the largest source of remittances to Kenya, accounting for 54% in June 2024.”

Kenya’s real estate market is expected to grow to about Sh89.7 trillion ($697.8 billion) by 2024, according to a Statista report.

Looking ahead, the market is expected to grow steadily, with an annual growth rate of 3.84% between 2024 and 2028, reaching a market size of Sh104.4 trillion ($811.4 billion) by 2028.

George Wamariu, director of Famyard Real Estate Agency, said the expatriate market is a key market for real estate.

“Kenyans have the ability to invest in land or property but may not be able to come and view the property in person. We are making it easier for them to buy remotely,” he said.

“As brokers and family members back home are not trustworthy, more and more Kenyans living abroad are looking to work with reputable real estate companies with strong portfolios. This allows overseas investors to purchase properties without having to physically travel to Kenya,” he said.

Purchasing Power

He noted that real estate agents are increasingly using technology to reach potential homebuyers in the diaspora market because most Kenyans living in these countries are professionals; they have strong purchasing power and are looking for long-term investments.

“As real estate agents, we are using Modern Technology “This makes it easier for people living abroad to buy property in the country. We are creating virtual tours of local properties and advertising on social media targeting online advertisers,” he said.

“This allows them to connect with potential buyers who may be thousands of miles away, making it easier for these overseas clients to browse available properties, arrange viewings and ultimately invest in the local property market. They can afford plots of land priced at Sh400,000 and above.”

Wamariu said they are attending events of the Kenyan community abroad and networking with them to promote Kenyan investment opportunities in the country, a strategy that seems to be paying off.

“When an expatriate buys land in Kenya, I handed over the property rights to them.“I attend property expos overseas where I network with investors. We offer a range of payment plans tailored to the client’s financial capabilities,” he said.

Expatriate investment now accounts for about 20% of Kenyan real estate transactions, compared with just 10% five years ago.

Cytonn’s recent Real Estate Investment Trust (REIT) report said the real estate sector has been a significant contributor to the country’s GDP, growing at a compound annual growth rate (CAGR) of 5.5% over the past five years. In the third quarter of 2023, the sector grew by 5.4% to Sh785.9 billion, compared to Sh743.4 billion in the same period of 2022.

“For many expatriates, owning a piece of Kenyan land is a matter of pride, a way to stay connected to my roots and build for the future, even if I’m not there full-time,” said Norman Magenda, who bought a piece of land in Chakanyeri Regency while living in Kuala Lumpur, Malaysia.