Infrastructural development causes cost of land to increase

Infrastructural development has seen the cost of land increase tremendously pushing real estate developers to opt for vertical building concepts in a bid to maximize on available land. 

One such company is Lordship Africa that has announced plans to invest four billion shillings in constructing a 44-storey residential building in Upper Hill, Nairobi County.

A rapidly growing population and more so, an increasing middle class, has propelled the residential sector with the nationwide housing deficit standing at 4.5 million housing units.

However, land to develop especially in Nairobi is scarce, leading to a price hike in the value of existing land.

To counter these developers are opting for building vertically and leveraging on air rights.

One such project is a 44-storey residential building planned for Upper Hill in Nairobi by US company Lordship Africa, which is expected to be completed in three years.

Jonathan Jackson Lordship Africa chairman, the project has set the pace for other developers eyeing Nairobi for real estate investments.

Building vertically is deemed a solution to meet the needs of the people who cannot afford to relocate to Nairobi’s satellite towns due to easier access to social amenities such as healthcare services, restaurants, schools, and shopping malls.

The latest building and construction report by Cytonn indicates that the demand for a live-work-play lifestyle, master-planned communities are increasing with areas such as Kiambu and Machakos counties becoming hotspots, while, satellite towns such as Ruiru, Kitengela and Athi River are growing with more people looking for townhouses.