A Nairobi based real estate firm Purple Haze plans to launch a Sh4.5 billion housing project next month in the city’s Kilimani area.
The project targets to supply 216 new housing units comprising at least 12 penthouses into the housing market.
Purple Haze has downplayed existing fears of a slowdown in the industry. The firm’s management believes the project which sits on a 2.5-acre piece of land will provide an opportunity for buyers to acquire homes for a low as 20 percent deposit with an alternative to a mortgage facility by a local bank that provides up to 105 percent financing.
Purple Haze Director Mavji Varsani pointed out the units could yield as much as 8 to 11 percent of their value.
“Each apartment features a self-contained, detached servant quarter, a top of the range European finishing combined with artisanal workmanship which brings out the true design elements in this award-winning project,’’ Capital FM quoted Mavji.
He added that although most developments do not incorporate enough landscaping and greenery; they have gone up to 40 percent on landscaping.
The Purple Haze property in Kilimani was designed by Singaporean WAVE Design Consultants Architect Amit Mody.
The announcement by Purple Haze comes in the backdrop of a 2.8 percent growth of the real estate industry in the first quarter of 2019. This data is from the Kenya Bankers Association (KBA).
Real Estate Slow Down
In previous review periods, the real estate industry registered the slowest growth in the recent past – 1.6 percent –in the third quarter of 2014.
The oversupply of housing units and limited access to credit has been blamed for the non-promising demand in Nairobi’s real estate market.