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Home Real Estate

The impact of infrastructure development on property values

Fridah Karei by Fridah Karei
January 9, 2025
in Real Estate
Reading Time: 2 mins read

Infrastructure development has had a profound impact on property values in Kenya. The country’s investment in transportation networks, utilities, and social amenities has significantly enhanced the desirability and value of properties in various regions. One prominent example is the Standard Gauge Railway (SGR) from Mombasa to Nairobi, which has greatly improved connectivity and reduced commuting time between these two major cities. This development has led to increased property values along the route, as areas that were once considered remote are now more accessible and attractive to both residents and investors.

The construction of the Thika Superhighway, a major highway linking Nairobi to Thika, has similarly had a substantial impact on property values in the surrounding areas. The improved road infrastructure has reduced travel time, eased traffic congestion, and opened up new opportunities for residential and commercial developments. As a result, property prices in areas such as Ruiru, Juja, and Thika have seen significant appreciation.

Urbanization trends in cities like Nairobi and Mombasa have also contributed to rising property values. The development of modern amenities, including shopping malls, schools, hospitals, and recreational facilities, has made these cities more attractive to potential homeowners and investors. For instance, the presence of high-end amenities in residential projects, such as swimming pools, gyms, and 24/7 security, has attracted buyers and investors, further boosting property values.

In addition to transportation and urbanization, the availability of utilities and social amenities has played a crucial role in shaping property values. Areas with reliable access to water, electricity, and sanitation services are more desirable and command higher property prices. Investments in infrastructure projects that improve these basic services have a direct positive impact on property values in the surrounding areas.

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The demand for rental properties has also increased due to infrastructure development, particularly in urban areas. The influx of professionals seeking better job opportunities and improved living conditions has led to higher demand for rental units. This increased demand has driven up rental prices and property values, making cities like Nairobi and Mombasa attractive destinations for both homebuyers and investors.

 

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