Kenyan town beautifully emerges as new frontier for investors

EVANS KANINI By EVANS KANINI, 29th Apr 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/3dv1lwcc/
Posted in Wikinut>Writing>Columns & Opinions

Aberdare Hills Golf Resort pilots growth with 15 per cent yields for property buyers

Vibrant

Naivasha, a busy and lively Kenyan town, is emerging as the new frontier for investors keen on attaining high capital gains and rental yields, as the town rises as a preferred international conference destination, owing to its proximity to Nairobi- Kenya's capital city, and the ease for delegates to connect to various places of attraction, including scenic views of the world’s largest valley.

Infrastructure

This, coupled with expected completion of modern infrastructure that connects the capital to the town, is expected to further spur demand for accommodation.

“The growing preference of Naivasha as a conference tourism destination has led to increased demand for hotels, lodges and self catering accommodation facilities therefore continuing to drive returns marginally above other local towns in the country,” said Dr. Pritam Singh Panesar, Managing Director at Panda Development Company Limited, the developer of Aberdare Hills Golf Resort.

Buyers at the Chapachula village of the Aberdare Hills Golf Resort, are set to obtain 15 percent annual capital growth in the first two years upon with the properties projected to appreciate at an annual rate of over 5 percent following completion of the international golf course and conference facilities.

"We are piloting golf and conference tourism concepts that have been proved to deliver huge returns," explained Dr. Pritam.

"These are relatively new in Kenya and their potential remains largely unexploited," he said.

In 2012, Naivasha made a debut in the International Congress and Convention Association (ICCA) continental report, ranking 34th in Africa as one of the most popular destinations for international conventions.

ICCA is a worldwide umbrella body for international Conferences and conventions.

Following the realization of this potential by investors, Naivasha has become the epicenter for attraction of multi-billion real estate projects keen on high returns.

“We have been motivated by the growing popularity of Naivasha as a destination for high profile international and domestic conferences. With the new status, as one of the upcoming towns in the world, Naivasha is most ideal for those seeking better property gains,” said Rod Taylor, the Chief Development Officer at Aberdare Hills Golf Resort.

Survey

Industry survey shows that property values for stand alone houses and villas rose by 3.0 percent in the second quarter of 2013 while the rental yields rallied at 2.6 percent in Nairobi.

"With the current status as a conference destination of choice and the towns an unlocked potential in the property sector, Naivasha leads Nairobi in property returns," explained Dr. Pritam.

Currently, tourists pay between $275 to $390 in low season for holiday rentals within Naivasha compared to between $188 to $360 in Nairobi.

"What is even more important is the future of the tourism and holiday opportunities in the Naivasha area", Dr Pritam noted.

For example, the planned double highway from Nairobi to Naivasha will probably be in use within 5 years and the re-established rail link line will also be operative in about the same period.

"These will significantly reduce the travel time from the current 1 hour to 40 mins," said Dr. Pritam.

Aberdare Hills Golf Resort is established on a 1,700 acre out of which only 30 per cent will be built on while the rest will left for wild animals, birds and forest thus making it an ideal destination for tourists.

"The development comprise of a par-72 championship golf course, residential villas and town houses, a clubhouse on the ninth and 18th greens and a 120-room five star hotel with conference rooms, ballroom and spa facilities”, asserted Taylor, a reputable real estate legend.

Designed by world leading designer of upmarket and exclusive destinations WATG, the resort is touted to operate in the ranks of prestigious Africa's properties.

The first phase of the project comprises the 18-hole USGA Championship Golf Course, a Club House, a luxury hotel and an exclusive residential community with a choice of villas, townhouses and homes.

The residential villas and town houses are set to be owner occupied but they can also be rented out at will as self-catering accommodation to tourists.

“By renting private accommodation at Aberdare Hills Golf Resort, tourists are able to create their own 'home away from home' and it is relatively inexpensive way of staying in Kenya for large groups of people," explained Rod Taylor.

Aberdare Hills Golf Resort is setting new standards for leisure development and lifestyle within the East African community and will be the exclusive host of International golf championships in Naivasha factors that will constantly multiply returns according to Pritam.

“The development site is on a high plateau with views over Lake Naivasha. The resort includes the Malewa River on its north-west boundary and dry gorges and ravines. These natural features have been incorporated into the design of the golf course,” he added.

The developer estimates the project, targeted at the local, regional and international market, will cost some Sh120bn.

The prices of homes will range from Sh 18 million to Sh 40 million depending on the house size and the foot prints of the land.

Aberdares Hills Golf Resort will be Kenya's first five star eco-friendly golf resort and is located outside Naivasha town, about 80 km north-west of Nairobi.

Lake Naivasha

The town is the center of Kenya’s important horticultural and floricultural industries and overlooks Lake Naivasha, one of the largest of the Great Rift Valley lakes.

Tags

Investing, Investment, Investment Opportunities, Investment Strategy, Investors

Meet the author

author avatar EVANS KANINI
Kenyan journalist writing on issues of education, health, environment, agriculture, water, democracy, human rights and governance.

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Comments

author avatar cnwriter..carolina
2nd May 2014 (#)

how wonderful EVANS...my husband told me Kenya was one the bread basked of the world...

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author avatar Evans Kanini
3rd May 2014 (#)

That is true Carolina. But the country lost its glory gradually, owing to corruption in the 1990's and gross mismanagement of public affairs. Lovely day!

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