By Beth Nyaga
Industrial and Commercial Development Corporation (ICDC) has jump started Kenya’s off-plan property market with competitively priced luxurious apartments at the Coast.
ICDC has invested Ksh 650 million shillings in the entire project which is 75% complete.
The development finance institution has announced it will finance up to 80 percent of the purchase price per unit of its real estate development, The Oceania Apartments.
Prospective buyers will enjoy a repayment tenure of up to 15 years at an interest rate of 13% p.a. on reducing balance, which is lower than commercial bank interest rates.
“The main incentive for early adopters will be discounted prices in off- plan sales, being able to choose their preferred location and the ability to propose changes of the interior finishing to their particular apartment while the development is on-going” said ICDC Ag. Executive Director Kennedy Wanderi.
Buying off-plan property refers to purchasing property in advance of its completion. These properties are generally priced lower than ready properties.
Prospective buyers will be required to pay a deposit of 20% of the purchase price with balance paid as per the schedule indicated in the letter of offer.
ICDC is targeting Kenya’s growing middle class with a taste of finer things and real estate investors looking for high returns on furnished apartments.
“Our target clientele are families that want to indulge in a luxurious lifestyle at an affordable price and investors in real estate who may want to generate returns by offering furnished apartments,” said Wanderi as he made the announcement.
The Corporation said that the local real estate market has shown a huge appetite for off-plan properties with most investors slowly shifting away from complete projects.
“Buyers believe that they are getting a better deal when they purchase properties off plan,” he added.
Oceania development consists of 36 supremely elegant apartments within Mombasa Island, located on Barmadi lane off David Kayanda Road, in Kizingo. The apartments are strategically located near social amenities such as shopping malls, supermarkets, restaurants, schools and the Mombasa club.
Already 25 percent of the units have been sold out, with the reduced charges on home loans and incentives seen driving uptake of the units further in the next few months.
The development guarantees privacy where your family can live in abundant peace and quiet.
It has spacious rooms with a distinctive finish, a two floor parking space, borehole, roof top swimming pool and a rare view of the expansive Indian Ocean.
The possible slowdown in the real estate sector precipitated by the political activities in this election year presents the middle class with an opportunity to invest, according to ICDC.
“We would advise purchasers in the middle class to take advantage of the reduced activity by heavy spenders who are likely to shy off from making new investments during this period,” said Wanderi.