Every five years Kenyans go to the ballot to elect new leader beginning with the president, governors, senators, members of parliament and members of county assembly. A year before election, a lot of activities take place depending on which side you find yourself; aspirant or voter.
Real estate investment presents a very interesting scenario during elections or just before election. Just like now when elections are coming up in less than one year, a lot of activities are taking place. This is why in this article; we look at some of the reasons why you should invest in real estate before the election in Kenya.
- Panic about the future
Whenever elections are coming in Kenya, Kenyans tend to panic. This is caused by the past experiences of violence after elections. We all recall the 2007-2008 post elections where more than 1000 people are said to have died because of violence, apart from loss of properties.
This is a good opportunity to invest in a real estate in Kenya. Look for those selling land or buildings and see which offers the best value for money.
- Raising funds for political activities
A number of political aspirants are raising money for their campaigns. A good number will opt to disposing some investments like lands or buildings to raise funds for campaigns. This is a reason to stay on the look for a good property.
- Liquidating investments
Some people would prefer to sell of their real estate investments before elections just to avoid the potential of damages caused by elections aftermath. Some are also liquidating their investments because of not being sure of how the market will be after the elections. We have seen foreign investors selling off their stocks ahead of elections because of not being sure of the outcome of the elections.
This may marginally increase supply of real estate properties in the market and can result in reduced property value. A survey which was done a couple of weeks ago showed that the property prices reduced in Nairobi due to oversupply. This could point to the fact that more people are looking to liquidating their real estate investments ahead of the elections or due to political aspirants raising funds for political activities, among other reasons.
- Hard economic times
Hard economic times could result into people selling off their real estate investments. As a result of the cost of living going up, increased fuel tax and the effects of COVD-19, the economy is facing a very difficult time. Many people lost jobs and businesses closed. A lot of commercial blocks are facing high vacancy rates due to businesses closing up.
Hard economic time will also drive people to sell their real estate properties. This will also increase supply and assist in giving buyers more bargaining power.
- Prospects after elections
While some people may be selling off before of the election which is coming up, others may be investing with the prospects which exist after the elections. After elections, businesses move in to settle and continue with operations. This will lead to more employees looking for accommodations, businesses opening up offices, and many other things.
You could look at the potential after the election and see where you can invest with the future in mind. Are you going to create more office spaces or rental spaces?
These are just some of the reasons why you should invest in real estate before the elections in Kenya 2022. What reasons would stop you from investing? Share with us through the comment section.