The real estate market has been a lucrative industry for average person, investors and additional industries such as banking, alongside insurance companies and pension funds – all looking for long-term, low-risk investments.
As the world population increases, the demand of real estate has increased when most major cities demand more residential properties as well as commercial. The shortage has forced the increase in property prices around the world forcing investors to seek alternatives, while those determined to remain in the real estate sector are diversifying in terms of location and use. Student accommodation, residential developments, hotels, retail outlets and logistics developments are now seen as attractive opportunities. And, if investors cannot buy, they can build.
Risks such as regulation and taxation affect how real estate investment vehicles are structured and disclosure regimes are already having an impact. A shifting tax environment creates uncertainty, while increased regulation adds to operating and administrative costs, creating a drain on returns.
Political influence is also creating opportunities as well as challenges. Real estate investment through new building projects creates jobs, benefits local communities, and attracts overseas investment – all key to economic growth.
Makini Group has built up extensive experience in the real estate sector, based on detailed knowledge and insights. We have had the privileged of providing affordable houses, luxury penthouse apartments in London, UK, building family homes in Atlanta GA and luxury homes in Mombasa, Kenya.