Middle class downgrade during Covid-19
The following note is in accordance to the Kenya Bankers Association Housing Price Index noted in the Q1 2020.
“a modest 33 percent rise in demand for bungalows even as demand for apartments and maisonettes contracted by 95.9 percent and 57.1 percent respectively. Taken together, these shifts in trends reflect buyer’s adjustment as affordability remains a crucial concern in the housing market”
……………………………………………………………..
Ben Woodhams, the managing director of Knight Frank Kenya, cited the following on the real estate industry during the Covid-19 pandemic.
- Hotel industry and retail had taken the biggest hit from limits imposed by governments; with general decline of purchasing power that has slumped footfall
- The office market has not been as sensitive to the rent as those in the retail market – with fewer office tenants asking for rent concessions.
- the industry is also experiencing restructuring of leases especially those that are up for renewal – negotiating for lower rents and market prices’ adjustments will be seen for a long time to come.
