Profit-making idea: Tapping into Kenya’s affordable housing market
Profit-making idea is a series of short posts, each with a piece of information that we think you might find useful: for investment, for growing your company or to start a new business. Read our previous posts here.
In a recent interview, we asked Ivan Mbowa, co-founder and CEO of Umati Capital, to name a business opportunity he would still like to pursue. Here is his response:
“I believe that the best business opportunities are those that address significant and untapped consumer demand. For anyone starting a business in Africa, I would advise you to look at the fundamentals. One fundamental business opportunity that I see is in affordable housing.
“Affordable housing options have not caught up with the rate of population growth and urban migration.
“Whether you look at this from the spectrum of student housing or single accommodation options, I believe that the right mix of price and quality is a sure bet and one that will reward a business person/investor with returns at least equal to, if not greater than, the 25% per annum appreciation in real estate that most investors have seen in real estate in Kenya.”