We have been discussing the opportunities in Ruiru real estate. Our first article was a general overview of Ruiru. We did a comparative study of Ruiru and Ruaka and made some important predictions. Click here to read the first article in this series.
Last week we talked about Kamiti road and the great opportunities therein. So far, Kamiti road holds the highest potential. Click here to read the article.
Today we will look at the Eastern bypass from Kangundo road till the end of the bypass at Tatu city. We will not talk about Northlands and the industrial parks as information about how to invest in the same is still scanty.
Let us look at the history, present and prediction of the future of the Eastern Bypass in Ruiru.
When I was beginning my valuation career as an intern in the year 2006, plots on the second row of the Eastern bypass were going for Kshs 1 million for 1/8 acre. The ones about 1 km from the Eastern bypass, were selling for Kshs 300,000. Today the values have gone up 10 times as the Government and its development partners have improved the infrastructure. The area is now served by all weather roads and sewer lines and the population has also grown 10 fold in the past 15 years.
The main disadvantage of this area is the lack of controls and excessive land subdivision. these two factors have been a big factor in slowing the growth of the area. The appreciation of land will slow down further when Northlands, infinity industrial park and other industrial parks along that road are completed as the thousands of casual workers will be looking for cheap accommodation. The speculative land owners in the area will put up mabati houses on their plots to cater for this clientele and this will be the biggest undoing on property values in that area.
My advise to those who have already invested in that area is to guard the public utility plots from being encroached / grabbed by people who want to put up informal settlements.
To preserve the capital value of your properties, the residents can form “nyumba kumi” within the estates and attempt to control the kind of development that can take place to avoid incompatible land uses.
If you are thinking of buying land to build a residential house in this area, I would like to invite you to look at alternative locations within Ruiru like Kamiti road or Ruiru-Githunguri road. Ruiru real estate is fast becoming lucrative. Click here to read how stand alone houses depreciate in value
However, if you want to put up rental or commercial developments, this area has great potential.
Next week we will look at Ruiru-Githunguri road.
I appreciate your feedback. Please reach me on 0723477035 or email info@kariukiwaweru.com
Valuer Kariùki, MRICS
Registered & Practicing Valuer
Chartered Valuation Surveyor.
