FREDRICK ONYANGO| NATION: A view of the Real Estate in Upper market areas of Westlands in Nairobi.

FREDRICK ONYANGO | NATION: A view of the Real Estate in Upper market areas of Westlands in Nairobi. 

 

Rental income from homes has come under new pressure in the quarter to September even as selling prices continued to rise, further depressing returns for investors who have bought residential property to let.

(Also read: Low rental income removes the shine from residential property)

The latest housing survey by property firm Hass Consult reveals that homes in the upper segment were most affected in the period, shedding almost two per cent, implying that investors would be better off owning rental houses targeting the middle income segment.

But it is the sustained rally on selling prices on homes which rose by close to one per cent, across the entire market that has increasingly ensured property developers are the biggest winners in the lucrative real estate industry.

The rise in property values also cuts short what property experts had termed as a pricing correction first reported in the April to June period when average selling prices declined by about Sh450,000 to Sh21.2 million.

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