For the last one decade, foreign investors have sought to buy into properties in Kenya owing to the phenomenal appreciation of the country’s real estate sector. However, the tide seems to be slowly changing, going by an advertisement by a Dubai-based realtor in the Kenyan market last week. Deyaar Development, one of the largest developers and real estate service providers in Dubai, has pitched tent in the country and wants ultra-high net worth individuals in Kenya to consider buying into one of their new projects, The Atria. This is a Sh22.5-billion development set for completion at the end of 2017 and comprises serviced apartments. And there is a reason the company is seeking to reel in such ultra-high net worth individuals (UHNWI), or those with at least Sh3 billion to burn. A two-bedroom unit in the 20-floor building costs a little over $1 million (Sh110 million). However, an investor is guaranteed a 14 per cent annual return on investment.
Deyaar is one of the most profitable real estate companies in the United Arab Emirates, posting a 67 per cent increase in revenues last year. The company generated AED428.3 million (Sh11.96 billion) against the previous year’s revenue totaling AED257.1 million (Sh7.1 billion). This led to a 55 per cent increase in 2016 operating profit of Sh6.1 billion. While there is no doubt the market faced challenges in 2016, real estate remained a standout asset class for investment. “With key projects like The Atria and Mont Rose scheduled for delivery in 2017, our ambitious plans for the hospitality sector with around 1000 units under development, the intention of launching new projects as well as our recently announced plans for Dubai South, the Deyaar team is cautiously optimistic about prospects for the year ahead,” said Saeed Al Qatami, the company’s chief executive officer.
Deyaar’s interest in Kenya’s high-end investors is part of a global campaign that has seen the company embark on a series of international marketing, including roadshows in New Delhi, Mumbai and Turkey.