PROPERTY PRICING IN KAKAMEGA

PROPERTY PRICING IN KAKAMEGA

One of the most sort out information on property segment in Kakamega is the price

guidelines for those looking for either land to buy or house to rent. One client ranted on our

social media platform about the expensive housing units in Kakamega. We couldn't’ help

but to inform him that there is no specific law that strictly stipulates the price guidelines on property in the whole country.

To this effect, it remains a business between the willing seller and the willing buyer. This therefore means that, its your choice to use your budget estimates visa vi the preferences you are looking for in case you are looking for a house to rent. As for the land, the same applies, its about willing buyer, willing seller. If

the two agree, well and good. At no time should you be forced into buying or renting something beyond your budget projections.

The government of Kenya has not in any way given standards of measure on property pricing. This therefore means that sellers have the right to choose how much they can chose to sell their property at. What we can say is that, property prices will always differ depending with size, accessibility, proximity to social amenities and the availability of property documents.

As a property consultancy firm, neither do we have the mandate to set a price for properties. What we can only do is to help a seller or a buyer with the average price of properties in a specific locality relying on valuation or reference of previous property prices that have been transacted in recent times.

In our analysis , we have tried to give the average price rates for properties we have delt with in most recent times starting with housing units and then the land. Land is the most

difficult item to peg a standard price on. The price of land may also depend on the urgency of the seller or the reason for sale. Lands that are being sold due issues like family emergen-

cy will tent to be cheaper and negotiable, compared to land that was bought sometimes

back and used as an in investment for future disposal for profits.

Averagely, a modern good house in Kakamega should revolve around the following

prices;

1. SINGLE/DOUBLE ROOMS

Ksh. 3,000 to Ksh. 5,000

2. BEDSITTERS

Ksh. 5,000 to Ksh. 7,000

3. STUDIOS

Ksh. 6,000 to Ksh. 10,000

4. ONE BEDROOM

Ksh. 8,000 to Ksh. 13,000

5. TWO BEDROOM

Ksh. 12,000 to Ksh. 20,000

6. THREE BEDROOM

Ksh. 18,000 to Ksh. 30,000

7. OWN COMPOUND HOUSES

Ksh. 20,000 to Ksh. 30,000

8. BUNGALOWS AND MANSIONETTES

Prices here remains a negotiation and agreement between a willing seller, willing buyer.

Factors to consider when negotiating for house price include; Security, Water availability, house finishing, space, distance from tarmac, accessibility and availability of social amenities.

LAND PRICING

As we earlier clarified, land is the most difficult commodity to peg a specific price standardization. Its very possible that two

people each selling a plot of land with equal measurements at the same place are likely to sell the plots for completely different prices.

While one seller will opt for Ksh. 1 million as starting price, the other one may opt for Ksh.

800,000 as the starting price. If each gives an allowance of Ksh. 200,000 bargaining power, it means that the first seller will sell the plot at Ksh. 800,000 while the second seller will be

selling the plot at Ksh. 600,000. While each seller will be contended with the value of his or sell, the two different buyers may not be concerned at the prices they bought their plots at. What matters is their priority, budget and satisfaction.

Now, in the case a new buyer approaches us for property advice on price before buying a

plot in the same vicinity, we are more likely to quote the most recent buyer who bought the

land at Ksh. 600,000. This however, doesn't in any way insinuate that, Ksh. 600,000 is the actual price of plots in that area. It could be a marking point, but with different sellers,

different buyers and different bargaining power, the plot in the same vicinity may still cost below that price or below.

AREAS OF CONSIDERATION

1. 5KM RADIUS FROM TOWN

Any land being sold within this radius is considered to be within the town center of town access. The areas may include centers

immediately after town such as Joyland, Amalemba, Lurambi, Murrum and Maraba. The prices for these areas are high due to demand and proximity to town.

These are hotspot areas for rentals houses with close proximity to town. From recent

transactions, the prices for a plot range between 1.5 million to 5 million depending on the plots adjacent to main roads.

2. 6-10KM FROM CBD

These are areas that come immediately after adjacent centers, some are also more closer.

These are Ikonyero, Shirere, Mwiyala, and other interiors. The price for a plot mostly range between Ksh. 1 million to 3 million depending with the plot location and accessibility.

3. 10-20 KM FROM CBD

These are areas that form the next satellite centers after CBD. Most people thinking of settling for home residences are likely to consider these areas. However prices along the tarmac tent to also remain high. If you move into the interiors of averagely 200-500 meters from the tarmac, you may be able to get good plots to set your residential homes. These areas include, Shisiru center, Lubao, Muraka, Ilesi, Lweselo, Ebambwa, Shaivakala among many. The average price for plots would range between Ksh. 400,000 to 800,000.

4. LAND ALONG THE TARMAC

Land along the tarmac tents to remain high on prices especially on main roads like Kakamega –Kisumu, road Kakamega-Webuye road and Kakamega-Mumias road.

5. LAND IN MASHINANI

For those looking for cheaper land, Mashinani is all time the best place to cast your nets.

The cheapest we had on sale in the last few weeks was in Mumias Musanda with an acre going for Ksh. 450,000. Land around Kakamega areas has really gone up. The cheaper areas to explore at the moment would be, Interiors of Shinyalu, Mumias, Butere, Khwiselo among others.

Note: Land will always be expensive as long as you are window-shopping. When money is available, most land sellers drastically reduce prices through negotiation. However, it all depends on the reason the land is being sold. Land bargaining is never done on phone or on social platforms. View the land physically, connect with the title owner, and do the bargaining.

Researched and Compiled by KAREPS