ADG’s Affordable Housing vs Kenya’s Housing Problem

ADG’s Affordable Housing vs Kenya’s Housing Problem

Currently urban populations in Kenya specially Nairobi are growing at a rate much faster than can be absorbed and managed, causing demands on services and infrastructure that massively outstrip supply. In many emerging market cities, this leaves the majority of residents with few options but to forget about real estates and live in slums.

Kenya’s housing challenge is extreme. The average price for an apartment in the capital city of Nairobi is KES 11.58M (USD 136,000) in 2020,
up from KES 5.2M (USD 61,000) in December 2000. There is no home on the formal market below KES 2M (USD 23,000), a level that is still completely unaffordable to low income populations.

Twenty-two percent of Kenyans live in cities, and the urban population is growing at a rate of 4.2 percent every year. With this level of growth, Nairobi requires at least 120,000 new housing units annually to meet demand, yet only 35,000 homes are built, leaving the housing deficit growing by 85,000 units per year. As a result of this mismatched supply and demand, real estate prices have increased 100 percent since 2004. This pushes lower income residents out of the formal housing market and into the slums.

Just like any big challenge, the lack of housing presents an opportunity, while Access to affordable, quality shelter brings many additional, often overlooked, benefits. In addition to the improved structure itself, there is the obvious benefit of financial security—in many cases the new homeowner now has an asset that is far more secure and valuable than any asset they have ever owned. Increasing access to high quality affordable housing has a profound impact, both for the individual and society at large.

The concept of affordable housing then comes up here. Our primary method to ensure the achievement of the affordable housing agenda is by
encouraging more entrepreneurs and investors to seek investment in the affordable housing sector in Kenya and its major cities such as Nairobi while providing them with the tools to succeed through investing in real estate with us.

ADG is an internationally recognized company with 25 years of experience in real estate development and construction
in several regions such as Egypt and Instanbul, just to name a few. We deliver quality developments with sophisticated design at amazingly affordable prices. We offer fantastic and flexible payments methods including rent to own and mortgage plans. Our pioneer project in Syokimau offers a wide range of units with Studios, 1 bed,2 bed and 3 bed units available, sizes starting at 21sqm to 134 sqm, and the cost starting at KES1.85M (USD 18,500).

A healthy and vibrant community is much more than just houses. It includes schools, clinics, places of worship, parks, and perhaps most importantly, a sense of ownership that is shared by the residents. It is essential for us as African Developers Group to think holistically, and include the physical spaces and social mechanisms that will foster a sense of community. This will determine the sustainability of the project long-term. Hence the conveniently located project with close proximity to the SGR, Gateway mall, Aga Khan University Hospital, Zuwena International School, Katani Catholic Church, just to name a few. With several amenities such as swimming pool, borehole, kids play area, ample parking, water treatment, walking track and backup generator.

According to us, affordable housing does not happen by simply downsizing a model targeted at middle-income populations. It requires creativity and deep understandings of the target market’s preferences and where there is room to maneuver on costs for our clients. Together we; ADG, investors, and Kenyan people can help overcome the Kenya’s housing challenge.


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