Property market neglects crucial aspects in turnaround strategy for mass buyers
The demand for affordable housing in Kenya is soaring, driven by urbanization and population growth, creating a significant gap between supply and demand. This high-quality demand, as stated by Etta Madete, Director of Zima Homes, primarily caters to low- and middle-income earners who face affordability challenges. Over 800,000 Kenyans have registered for affordable homes via government platforms like Boma Yangu[2][4].
However, Madete questions the quality of this demand for affordable housing. He suggests that the focus should be on facilitating end-user finance for affordable housing projects, which would expand purchasing power, drive construction, and make these projects economically viable under Kenya's Affordable Housing Programme.
End-user financing plays a crucial role in this context. By making homeownership accessible to low- and middle-income households, it stimulates demand and supports the viability of housing projects. For instance, government and financial institutions have increased funding initiatives, such as HELB loans for students, which indirectly boosts the affordability and demand for quality housing[1].
The Boma Yangu platform, a government initiative, has successfully registered over 334,000 applicants and helped 45,000 people become homeowners, demonstrating how end-user finance mechanisms and transparency encourage participation in affordable housing[2][4]. Financing solutions also help overcome cost barriers that traditionally hinder construction by guaranteeing a buyer base, enabling developers to secure funding and commence construction of affordable units[2].
International financial support, such as the European Investment Bank backing Kenya's green affordable housing fund, helps deliver thousands of affordable units while promoting cost efficiencies through energy-saving designs, which lower ongoing expenses for end users, enhancing affordability[3].
Despite the importance of end-user finance, it is crucial to remember that the success of large, fast, and beautiful affordable housing projects does not matter if end-user finance is not facilitated. The demand for affordable housing is not just about quantity but also about quality and financing, and end-user financing plays a critical role in making affordable housing projects economically viable under Kenya's Affordable Housing Programme.
References:
- Affordable housing: Why it's important for Kenya
- Boma Yangu: A game changer in affordable housing
- European Investment Bank backs Kenya's green affordable housing fund
- Affordable housing: How it's being addressed in Kenya
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