Is Real Estate Good during inflation in Kenya?
Is real estate good during inflation: when it comes to inflation, very many sectors are affected. And with it, alot of investors get stuck in investments whose value tend to underperform during these times. However, the real estate market has consistently outperformed its peers at times of inflation making it a go-to investment for hedging your fortunes.
By general definition, inflation occurs when prices for commodities and services experience a sharp rise due to local, global market forces. Most notably though, it’s a combination of both. A case in point is where fuel becomes scarce globally affecting all the value chains from agriculture, manufacturing all the way to the services industries. Thus creating a domino effect leading to price adjustments.
SUBSCRIBE TO OUR NEWSLETTER HERE
[newsletter_signup_form id=3]Here’s why we think Real Estate is the best insurance against inflation here in Kenya:
1. Capital Gains appreciation
Real Estate properties always appreciate in value in times of inflation due to price adjustments hence making you more money in capital gains compared to many other sectors. For instance, a property that you bought for let’s say Ksh. 1Million can easily go to Ksh. 3-5Million when inflation occurs. This would make you over Ksh. 1Million in capital gains.
Read also: Hotels in Kakamega for Family Time
2. Rent Increases
Rental Properties will always be in demand and the rents can justifiably be raised in times of inflation as well. Based on this, with a property based in a great location and of good quality, you can easily raise its rent payable due to price adjustments and still make more money from the same.
3. Complementary Income
Another key reason is that it’s great for passive and alternative income earning. As such, you can easily bridge the gap created by the inflation in your budgets by the income realized from real estate.
Do you want to find out more on how real estate can shield you from cases of inflation? Drop us a comment or call us on 0725121083.
Let’s build generational wealth together.
