Kenya's maturing property market has been supported by a rise in mortgage financing, it has been suggested.
Responding to figures released this week by HassConsult which showed that Kenyan property prices rose by an average 5.8 per cent last year, the Business Daily Africa commented that strong middle-class demand had played a key role in the sector's performance.
"The Kenyan housing market has emerged as nearly unique as an investment opportunity in the last decade, delivering three-fold returns, surviving the global and domestic recession and now back into capital growth as an asset class, albeit at more subdued levels than in the recent property boom," said the news source.
"But as analysts examine the causes of the sector's solidity and growth, many point to low-end housing as the pivotal point for a second decade of high returns."
Indeed, the Business Daily suggested that this growth had been driven by rising demand among "the middle segment" in the wake of new financing options and the expansionary policy of the Central Bank of Kenya in choosing to cut interest rates.
It said that mortgages had transformed the availability of housing finance for mid-income urban professionals in the last year.