Mi Vida Homes has signed a Memorandum of Understanding (MoU) with HFC Kenya. The partnership aims to provide a holistic approach to homeownership in Kenya by integrating financing, home advisory, investment opportunities, and long-term property value enhancement.
The collaboration signals a shift in Kenya’s property market, addressing key challenges facing homeownership in Kenya. Instead of focusing solely on property sales, the initiative is designed to create a comprehensive support system, guiding buyers from financing to strategic investment planning.
“By combining HF Group’s financial expertise with our commitment to high-quality, sustainable housing, this partnership is poised to set new benchmarks in the market, addressing key industry challenges and creating more accessible homeownership opportunities,” Mi Vida Homes Chief Executive Officer Samuel Kariuki says.
Unlike conventional real estate partnerships, this MoU extends beyond transactional home sales. The initiative will offer expert advisory services, ensuring that homeowners receive tailored guidance throughout their property ownership journey.
“Unlike traditional developer-financier partnerships that focuses only on selling homes, our MoU aims to create a full-fledged ecosystem that includes financing, home advisory, investment opportunities, and even long-term property value enhancement”, he added.
With a strong focus on long-term investment, the partnership aims to enhance property value while equipping homeowners with the tools needed for wealth creation in the real estate sector.
One of the biggest challenges in Kenya’s housing market is access to affordable financing. This partnership seeks to bridge that gap by offering innovative mortgage solutions and tailored financial advisory services for a wide range of buyers.
“We will provide financial assistance of up to 95 percent of the purchase price at a fixed rate of 9.5% for a period of up to 20years. This will allow many people to afford the mortgage as it a good incentive for them to buy the property rather than renting”, HFC’s Managing Director Peter Mugeni said.
The real estate industry remains a significant driver of Kenya’s economic growth, and this partnership is expected to accelerate investment in the housing market. By ensuring that buyers have access to the right financial tools and expert advice, Mi Vida Homes and HFC Kenya are fostering a more accessible and sustainable model for homeownership in Kenya.
Kenya’s real estate sector continues to expand its impact on the economy. According to the 2023-2024 real estate survey by the Kenya National Bureau of Statistics (KNBS), the sector’s contribution to the country’s Gross Domestic Product (GDP) increased by 33.7%.
In Kenya, real estate returns for residential properties in 2024 range between 5% and 10%, while commercial properties offer higher returns of up to 12%. Overall, real estate investments in the country yield returns between 5% and 30%. For example, investing in residential property can generate an ROI of up to 10%, while office spaces can offer returns of up to 12%.
Recent data shows that more people are moving to Nairobi and nearby counties, increasing the need for affordable apartments and gated communities. Nairobi’s population is expected to grow to over 5 million by 2030, driving demand for housing, especially among young professionals and families who want to live close to their jobs and important services
This persistent housing shortage, especially in urban areas like Nairobi, creates immense opportunities for real estate investors, particularly in the affordable and middle-income segments. According to HassConsult’s 2023 property index, residential property values in Nairobi increased by 5.4% year-over-year, with gated communities and apartment complexes seeing the highest demand.
Economists highlight that improved access to home financing and strategic investment planning can contribute to economic stability, benefiting multiple sectors such as banking, construction, and consumer goods.
Kenya’s real estate market is poised for continued growth, supported by government initiatives, infrastructure projects, and an expanding urban population. Each real estate sector commercial, residential, hospitality, and land presents distinct opportunities and challenges for investors.
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