Jeff Koinange loses his shirt?

[RV Pundit]

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https://www.businessdailyafrica.com/economy/Jeff-Koinange-Sh200m-homes-to-be-sold-over-NCBA/3946234-5516208-sd7paxz/index.html

[vooke]

He fell from grace but resisted crash landing. He is still hanging on

[hk]

Ati the two houses are worth $2m. Clearly most of high end property in kenya is overvalued.  The current economic meltdown first casualty is real estate. The banks are holding collateral of very overvalued assets, NCBA will be lucky to get an offer of 50m for both properties.

[RV Pundit]

I think if gov was to seriously expand infrastructure...the high end market in Kenya will be in trouble....because few kilometers from Kitusuru are huge kiambu coffee farms worth nothing. The problem with Kenya property is infrastructure and level of planning enforcement (sort of a premium if you know your house won't be a slum soon) is lacking.

So there will be huge depreciation in the high end - and huge appreciation in lower end - rural places now have electricity and tarmac - and prices are starting to compete with Nairobi metro.

And that is when we have 20K km paved road..with water, sewage, electricity and all basic infrastructure.

If we move to 60Kms of paved roads ...the overpriced properties in major cities will see huge correction...while places that are so remote...will start appealing to all.

With 2M dollars...you can buy yourself a whole ranch in Kajiado...or Kiambu..and have enough to build a bigger hacienda..and with all new roads in the pipeline...you'll be in Nairobi in few minutes.

So the problem with Africa overpriced real estates is really lack of basic infrastructure...if we had metros, light speed rails, super-highways, expressways - why would you buy such an ugly house fo 1m dollars..in a country where average income is about 300 dollars or less.

Ati the two houses are worth $2m. Clearly most of high end property in kenya is overvalued.  The current economic meltdown first casualty is real estate. The banks are holding collateral of very overvalued assets, NCBA will be lucky to get an offer of 50m for both properties.

[Kadudu]

I agree with you on almost all points. A friend of mine bought a house at over 26M in Kilimani. The house is actually a mess and everything in bad condition from the lavatories to the kitchen. He tells me all the good schools are in the vicinity of Kilimani and that is why one pays an arm and a leg for such a ruin. Access to every part of the city with in a few minutes would really help ease the problem.

I also agree with you that house of Jeff Koinange is very ugly. What was he smoking?

I think if gov was to seriously expand infrastructure...the high end market in Kenya will be in trouble....because few kilometers from Kitusuru are huge kiambu coffee farms worth nothing. The problem with Kenya property is infrastructure and level of planning enforcement (sort of a premium if you know your house won't be a slum soon) is lacking.

So there will be huge depreciation in the high end - and huge appreciation in lower end - rural places now have electricity and tarmac - and prices are starting to compete with Nairobi metro.

And that is when we have 20K km paved road..with water, sewage, electricity and all basic infrastructure.

If we move to 60Kms of paved roads ...the overpriced properties in major cities will see huge correction...while places that are so remote...will start appealing to all.

With 2M dollars...you can buy yourself a whole ranch in Kajiado...or Kiambu..and have enough to build a bigger hacienda..and with all new roads in the pipeline...you'll be in Nairobi in few minutes.

So the problem with Africa overpriced real estates is really lack of basic infrastructure...if we had metros, light speed rails, super-highways, expressways - why would you buy such an ugly house fo 1m dollars..in a country where average income is about 300 dollars or less.

[KenyanPlato]

Jeff is a narcissists. Narcissists are just like that. They are show horses for capitalists to use.

[gout]

Was wondering how a big shot like him would agree to work on Hot 96 radio from 5 and then be in the Citizen studios at midnight hosting JKL. That is some crazy shit.

Their pride has not enabled them tap into social media which is eating their lunch. Political thugs and gangster tycoons would rather give a million to Alais than to Jeffs.

Well some of this is pure madness!!

Mr Koinange was living in one of the villas and had rented the second one — which initially he had used for storing art pieces.

[gout]

Seems it ain't only Jeff - the tenderpreneurs' tails are on fire.

https://www.property24.co.ke/4-bedroom-houses-for-sale-in-kitisuru-s14531

https://www.property24.co.ke/4-bedroom-houses-to-rent-in-kitisuru-s14531?Page=2

[Georgesoros]

Ati the two houses are worth $2m. Clearly most of high end property in kenya is overvalued.  The current economic meltdown first casualty is real estate. The banks are holding collateral of very overvalued assets, NCBA will be lucky to get an offer of 50m for both properties.

EXACTLY my thinking too.
COVID19 will swallow up a lot of high end properties

[KenyanPlato]

When did Pundit become Bearish on KE Real Estate? I kept on arguing with him telling him economics ya mawe was a farce. He kept on arguing that it was Unique market that was largely informal

[RV Pundit]

There is empirical evidence of market correction in the high-end market. The rest of the market - is pretty much fine. I am talking of buroti maguta maguta.

When did Pundit become Bearish on KE Real Estate? I kept on arguing with him telling him economics ya mawe was a farce. He kept on arguing that it was Unique market that was largely informal

[hk]

There is empirical evidence of market correction in the high-end market. The rest of the market - is pretty much fine. I am talking of buroti maguta maguta.

When did Pundit become Bearish on KE Real Estate? I kept on arguing with him telling him economics ya mawe was a farce. He kept on arguing that it was Unique market that was largely informal

On the contrary, the entire real estate market is going through price correction. Its amazing how much vacancy is there in low end markets like pipeline, zimmerman, umoja etc. Ploti maguta market crashed way before even the biggest seller gakuyo collapsed ( this has directly led to layoffs of radio stations staff, ploti maguta were big advertisers).  Areas like Kamulu prices are going down cause there're no buyers. There's direct link between economic performance and asset prices like land.