Another turbulent year for real estate comes to a closeReal estate developers would wish to forget the just ended year, 2019, in a hurry. While outstanding mortgage loan assets rose to Sh224 billion from Sh164 billion five years ago, so did non-performing mortgage loans that stood at Sh38.1 billion. Interestingly, infrastructure projects such as roads meant to open up hitherto inaccessible areas turned out to be a double-edged sword for real estate developers. As expected, high land prices went hand in hand with home prices as developers sought to recoup their massive investments. Should similar developments take off this year, consumption of cement, one of the positive indicators into the health of real estate, will increase and reverse the downward trend witnessed most of last year.

Source: Standard Digital January 02, 2020 09:00 UTC