Kenyan housing market slows

14/07/2011 - Kenya property & investment news Posted by Bob Brunskill
Kenyan housing market slows

A property index has revealed that Kenya's house price rises slowed in real terms in the second quarter of 2011.HassConsult, which conducts the only property pricing index in east Africa's largest economy, observed that rising inflation hit buyers' hard.Average house prices, the index revealed, increased by 1.9 per cent in the second quarter compared with 4.4 per cent in the first quarter of 2011."Where houses sellers pushed asking prices up by 4.4 per cent in the first quarter of this year, the average rise across all types of properties was just 1.9 per cent between April and June," Farhana Hassanali, property development manager at HassConsult, commented."(It's) reflecting an increase that was below inflation and thus a fall in house prices in real terms." HassConsult added that they expected property prices to be strained in coming months, because developers will try to cover their costs, while buyers will also enter the market with tighter budgets.