The Architectural Association of Kenya (AAK) has launched the Status of the Built Environment report for July to December 2020, produced by the Architectural Association of Kenya. AAK produces this report twice a year and presents highlights in the real estate sector, tracking developments in land, financing, infrastructure, policy, and legislation. The report also presents developments in public sector infrastructure developments.
The report for the second half of 2020 highlights a lot of interesting trends in the Real Estate Sector. It is worth noting, that the research behind this report has been undertaken in unusual times, in the middle of the Covid-19 pandemic and a projection of a global recession in the aftermath of the global pandemic.
However, it also highlights opportunities for our local economy. The most vibrant sector has been the Industrial sector with an increase in rents, development pipeline and leasing activity and new tenants. This is a positive development, as a locked down economy proved we needed to invest and promote local manufacturing.
Affected sector
The most affected sector has been the hospitality sector, with a downwards trend in rents, development pipeline and leasing activity. However, it is encouraging to note that the Government with the support of the World Bank is underway releasing 3 Billion kshs to this sector via a special Economic Stimulus Fund for refurbishments and renovations. We look forward to seeing a trend upwards in this sector.
The report further predicts a continued slow down in the retail and office spaces, due to remote working and online shopping growth particularly with the Covid-19 pandemic. We also expect in the residential sector, continued growth as Kenyans re-look owning their own homes and their costs of living.
Our recommendations based on the report and the state of the industry is that priority needs to be given to local Professionals, manufacturers, builders, with a focus on building capacity and resilience in the industry. A move away from large and foreign-financed and built infrastructure projects is needed. And a refocus both in public and private sector is needed towards social impact projects including attention to expansion of water supply and wastewater management systems in our Cities and a focus on strengthening educational and health facilities towards more resilient communities.
ABOUT AAK
Established in 1967, the Architectural Association of Kenya (AAK) is Kenya’s leading Built and Natural Environments professional association, incorporating Architects, Quantity Surveyors, Town Planners, Engineers, Landscape Architects, Environmental Design Consultants, and Construction Project Managers. As an umbrella association, AAK brings together professionals in National and County Governments, the Private Sector and Academia. The association also acts as a link between
