Real estate is the best investment bet this year according to Cytonn Investments 2016 Outlook Report, this is due to high rate of urbanization created by the need for residential and commercial developments more demand driven by the middle class.
It details that local and foreign investors’ funds were best placed in real estate, which recorded a 29 per cent growth in 2015.
The report predicts a growth of 5.5 to 6.5 per cent attributed to transfer of power from central to the regional administration, has created a further need for residential and office space where job and investment opportunities are at a fast growing rate in the counties.
Prevailing economic environment has supported real estate economic environment because it is not affected by high interest rate and inflation therefore performance has been the best asset down from the last 5 years.
Deficit stands at 200,000 supply side global capital to generate attractive returns, huge capital in Kenya as inventors looking for home in sub-Saharan Africa. Look to dev real estate,
“We are optimistic that a 5 to 6.5 per cent growth can be achieved this year if Kenya keeps politics out of development and business matters” Cytonn Investments Manager Maurice Oduor said during the launch of the report.
Oduor said that last year investors in real estate netted returns that stood at 29 per cent; 10-year Treasury Bond Yield was 12.3 per cent, securities 10 per cent and the 91-day Treasury bills 9.6 per cent.
Cytonn Chief Investment officer Ms Elizabeth Nkukuu said outspokenness among Kenyans in the anti-corruption war was the best remedy to fight the vice.
She said civil servants are more cautious while handling public funds and this will lead to enhanced service delivery.