Low-cost residential market buoyant, says expert

THE low cost residential market which includes student accommodation has been the most buoyant with sustained growth owing to increasing demand, a Real Estate specialist Logan Nyasulu has said.

Mr Nyasulu said low cost units were proving to be more investment friendly owing to their build and maintenance cost to income ratio which is very low.

According to the February 2019 Real Estate advisory, this is a sector whose potential remains untapped.

Mr Nyasulu however the high cost market haD suffered the longest stagnation for more than two decades.

He observed that the rentals haD remained relatively the same especially that they were United States dollar dominated.

xMr Nyasulu said rentals in flats being developed in medium cost areas averaged around K6, 500 per month per unit.

He said the analysis predicts further downward pressure in this sector.

“The residential market has undergone interesting changes. Both the high and low-end medium cost market are under extreme pressure due to increased supply in that sector,” Mr Nyasulu said.

The expert said the need to focus more on the quality of tenants than on the quantum of rental income was currently urgent.

Mr Nyasulu said it was vital to look in a predictable and stable income free of excessive collection costs.

He said decision-making is a critical part of a real estate investment.