Wealthy Kenyans have developed a keen interest in investment in farmland, hotels and leisure, and private rented residential properties in 2024 according to the Knight Frank’s annual Wealth Report.
Released on Tuesday, April 30, the report detailed that Kenya’s High-Net-Worth Individuals (HNWIs), according to responses from private bankers and wealth advisors, have taken a step back from investing in foreign assets.
Also, the report noted that more and more Kenyans were no longer interested in acquiring other citizenships or passports, preferring to invest within the country.
“Kenya’s growth is bringing a resurgence in HNWIs buying Kenyan property. This includes second and third homes in addition to their commercial property investments. Wealthy investors have also taken a step back from foreign assets in favor of building bigger positions at home,” Mark Dunford, CEO Knight Frank Kenya said.
“The survey found that HNWIs are now holding about 60 percent of their wealth in homes, with just under 30 percent buying a home in 2023, and around the same percentage planning to buy another home in 2024.”
Also Read: Report Reveals Why Wealthy Kenyans Are Ditching Foreign Assets for Home Investments
Alternative Ventures Kenyans are Taking Up
Farmland is the most popular property type for investors other than homes, with a score of 77.5 percent.
Further, the report detailed those Hotels and leisure and Private rented residential follow closely behind with scores of 69.4 and 58.6 percent respectively.
Kenyans were investing 77.5 percent of their money in farmland and 69.4 percent in hotels and leisure. 58.6 percent of the money is going Private rented residential buildings.
Student housing scored 52.7 percent while retail property scored 50 percent. Also, the report indicated that investors showed less interest in healthcare, education, and development land which scored 49.7, 30.3 and 30.0 percent respectively.
Subsequently, as a property type for investors, officers scored 20.8 percent while data caters scored 13.3 percent. Logistics scored 13.3 percent and Real estate debt at 13.3 percent, recording the least amount of interest.
Also Read: Second Homes: Kenya Beats Canada, UK as Favorite Location for World’s Richest Individuals
Reasons Why Wealthy Kenyans Prefer Home Investments
Security and familiarity. The report explained that investing locally offers a sense of security and comfort and HNWIs understand the Kenyan market and legal system better, reducing perceived risks.
Convenience and control. Managing Kenyan property is easier for wealthy Kenyans because of closeness and familiarity. Also, landlords can directly oversee their investments and make quicker decisions.
At the same time, the move is due to favorable regulations and taxes that may be more advantageous for domestic property ownership compared to foreign investments.
“HNWIs tend to prefer domestic holdings for security, returns, and the convenience of managing properties locally.” read the Knight Frank Report 2024 in part.
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