Everything You Need To Start A Real Estate Business In Kenya

Real Estate Business In Kenya

Kenya’s real estate market is one of the fastest growing markets in the world with an estimated value of KES US $697.80bn according to “Statista”.

Kenya has a lot of opportunities and growing markets for individuals or companies who are looking to invest in the real estate sector. This however makes the real estate business to be a profitable venture in Kenya.

Meanwhile, the quest for modern development, infrastructure, and urbanization has made the Kenyan real estate market grow exponentially recently and also contributed to the country’s GDP.

However, by researching the market, understanding the market, and knowing the client’s preferences, you can start and thrive in the real estate sector.

The real estate sector has a lot of opportunities for you. Therefore, keep on reading to find out more about how to start a real estate business in Kenya, from market research to establishment.

What Are The Type Of Real Estate Business In Kenya?

There are different types of real estate businesses in Kenya and they are:

1. Agricultural Real Estate: This type of real estate involves farms and rural properties for its operation.

2. Residential Real Estate: Residential real estate business deals in residential properties such as apartment buildings, family homes, bungalow units, and terrace houses.

3. Commercial Real Estate: Also known as investment properties, is a type of real estate business that deals on land and buildings for commercial purposes. Examples are grocery stores, shopping malls, office buildings, hotels, etc.

These are the major types of real estate business in Kenya

How Profitable Is Real Estate Business In Kenya?

Starting a real estate business in Kenya is very profitable for several reasons. One, with Kenya’s population of more than 50 million people, the demand for housing and commercial spaces is so high.

Secondly, as urbanization is taking over, there is an increased demand for modern properties in society.

And lastly, the real estate business has a high return on investment.

With these few reasons, it shows how profitable the real estate business can be if you get started the right way. It shows that real estate is a good investment in Kenya.

How Much Do Real Estate Agents Make In Kenya?

The average earning of a real estate agent in Kenya per month is Ksh 30,000 to Ksh 100,000. Then per year is Ksh 300,000 to Ksh 1.2 million. All these depend on the transaction being completed.

What Is The Minimum Amount To Invest In Real Estate In Kenya?

However, this cannot be determined totally due to so many factors like the type of property to invest in, location, and size. However, according to what we researched, the minimum amount to invest in real estate business in Kenya should be Ksh 7 million.

What Are The Best Places To Invest In Real Estate In Kenya?

The real estate business is profitable, but location plays a vital role in maximizing profits. That’s why we did some research and brought out the best places to invest in real estate. However, below is the list:

1. Athi River
2. Nyali
3. Kitengela
4. Machakos
5. Naivasha
6. Ruaka

How Can One Start A Real Estate Business In Kenya?

You can follow the below steps to start a real estate business in Kenya:

1. Choose The Type Of Real Estate Business You Want To Start: The first step to take when starting a real estate business in Kenya is to choose the type of real estate business you want to start with. We mentioned some of the real estate businesses in Kenya. So you can start by choosing one and working towards it.

2. Do A Market Research: After choosing a niche, the next thing to do is market research. You have to study the market to know how saturated it is, the competition, and how you can dominate the market.

Also, you have to research the areas to invest in, how profitable the areas will be, and the requirements.

3. Draft A Business Plan: Nothing is as important as the business plan apart from capital. With a business plan, it will outline the strategies on how to run your business rightly from day one.

A business plan helps you identify challenges facing the real estate business, especially in your chosen field, and also possible solutions to them.

Nevertheless, a good business plan consists of the executive summary, services, products, competition, risks, market analysis, financial planning, marketing strategies, and budget.

You can also contact the services of a business plan writer to do that for you if you cannot write a well-detailed business plan.

4. Register Your Real Estate Business: The real estate business involves lots of legal requirements. As such, you need to choose your real estate business name and then register with the Business Registration Services (BRS). However, this can be done online via the citizen site.

After that, you obtain the required licenses and permits to operate your real estate business legally.

5. Build A Brand And Network: Branding is very important in building a successful real estate business in Kenya. You should offer value to your customers to build a trusted brand.

Also, you should create a website, logos, and social media pages for your real estate business.

Next is to build a network. This will depend on the type of work you need them to do. It ranges from property managers, real estate appraisers, and surveyors to other real estate agents.

6. Join Associations: You can promote your brand by joining real estate bodies in Kenya. This will build connections and recognition of your brand.

And ensure you get yourself involved in any activities that take place.

Conclusion

Starting a real estate business in Kenya requires a well-researched strategy and understanding of the real estate industry. Because having the right knowledge keeps you in the long run, and it helps you identify the pitfalls in the business and how to avoid them.

Ambassador Victor Chidera
Ambassador Victor ChideraAmbassador Victor Chidera is a business consultant, writer and a blogger. He provides lots of professional and expert advice to small businesses, entrepreneurs and organizations. He has many years of experience in business, teaching field, and research work. And his aim is to provide business articles that matters to you both nationally and internationally.
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