Period: August 31 to September 6, 2015

Real Estate Upbeat

31/08/2015: Business Daily, page 19

• There has been rising activity in the real estate sector shown by the rise in the Construction Cost Index which stood at 234.9 in May 2015.The highest in years.
• It’s been predicted that the trend will get better because of the Mega infrastructure projects such as the Lamu port and the standard gauge railway expected to open up new opportunities for construction.

Ministry Drafts rules to Hasten projects in Real Estate industry

31/08/2015: Daily Nation, page 40

• The ministry of Lands and Housing is drafting new rules which will demand:
  • All real estate agents will have to go for fresh registration.
  • Instead of the norm where the developer pays various fees to different government agencies, systems will now be harmonized.
  • The new rules are aimed at cutting red tape in a bid to speed up construction of properties.

Ruaka Real Estate Investment Opportunity

31/08/2015:Cytonn Investments Weekly Report No.34

• As highlighted on our MIP Weekly report No.5, There is reported growth in satellites towns and Ruaka is an Example of A satellite town.Ruaka Provides an attractive real estate investment opportunity, driven by 6 main factors:
• Ruaka Provides an attractive real estate investment opportunity, driven by 6 main factors:
  • Nairobi Northern bypass
  • Prospective infrastructure improvements – Road from Ruaka towards Limuru is expected to be expanded into a dual carriage.
  • Hotels, malls and recreational activities – Two Rivers, Village Market and Riviera Mall.
  • Security
  • International Organizations – UNEP in Gigiri.
  • Zoning
• However Ruaka faces 3 challenges:
  • Rapid development to cater for the growing middle class has outpaced the provision of Infrastructure.
  • Lack of adequate lifestyle facilities in real estate developments i.e. Clubhouses & gyms
  • Unplanned haphazard developments that have outpaced urban planning.
• Taking into account the various factors that have led to the growth of Ruaka, the most appropriate residential concept is a high density mixed use development, with a commercial Centre and Lifestyle facility in the development

Buildings Without City Hall Approval to face demolition in next six months

2/09/2015: Business Daily, page 6

The ministry of Lands and Housing is drafting new rules which will demand:

• All real estate agents will have to go for fresh registration.
• Instead of the norm where the developer pays various fees to different government agencies, systems will now be harmonized.
• The new rules are aimed at cutting red tape in a bid to speed up construction of properties.