Infrastructural Development Opens Up Real Estate Across Kenya

Thika Superhighway | Photo: Jambonewspot

Thika Superhighway | Photo: Jambonewspot

Across the globe, Real estate and Infrastructure have always had close ties. Infrastructure developments often open up dormant areas and attract developers, which potentially generates high yields on investments.

Case in point, the construction of the Machakos People’s Park and the refurbishment of the town’s once grass thatched ‘stadium’ into a functional entity with decent amenities. Kenyans, and mostly those from the affluent Nairobi, Nakuru and Mombasa neighbourhoods have repetitively flocked to the ‘almost capital’ to enjoy the new attractions. A drive down to the town and it’s not difficult to notice the emergence of hotels, restaurants, tarmac roads and lots of other complimentary infrastructure.

Developers are integrating infrastructure facilities in their development plans, creating traffic to their property. In developments such as gated communities and large scale housing estates, it’s common place to find, as standard features, proximity to malls, or upcoming malls, shopping complexes, green areas and parks, gyms and swimming pools, amongst a host of other amentities. Infrastructural development lures real estate developments due to the appeal of the area. Roads infrastructure, for instance, has opened up areas influencing property value, prompting the appreciation of prices in adjacent areas.

This would explain the high density effect the construction of by-passes across Nairobi has had on once exclusive and pristine neighbourhoods as Kileleshwa, Runda, Lower Kabete and Lavington. The roads that traverse these landscapes now have adversly opened up areas that were once inaccessible and reserved.

Lamudi MD Dan Karua says, “Projects like Lamu Port Southern Sudan Ethiopia (LAPSSET), the Thika superhighway, bypasses like Eastern, Southern and Northern, and the restoration of other roads have made the property prices in these areas appreciate drastically. Developers are benchmarking value of their property based on proximity to these areas.”

jkia 1

Airports aren’t being left behind, also undergoing development, with the major example of this being Jomo Kenyatta International Airport. Here the opening of Terminal 1A and the construction of the Greenfield Terminal which kicked off construction late last year, is set to boost the Airport’s status as an international hub: As Kenya is the major economic hub in East Africa many international firms will set their base here.

Development of the Commuter Railway System around Nairobi and the construction of the standard gauge line from Mombasa to Kisumu will widen the catchment area of real estate developments. Often perceived as far-flung and difficult to reach, areas like Kitengela, Athi River and Mlolongo have now experienced unprecedented growth with the Syokimau Railway line.

Savannah Silicon

Developments in the ICT sector have also facilitated the development of these areas as Konza City is to be constructed in this region. In addition, over 90 percent of Kenya’s population now live within GSM signal range: one of the highest rates in Africa, a good indicator for the telecommunications sector in the country.

“The Ministry of Energy and Petroleum plans to inject 5,000MW-plus into the national grid increasing Kenya’s power capacity to over 6,700MW, by the end of 2016. The result is expected to be cheaper electricity and increased capacity in the grid,” Karua noted.

The Power Sector has undergone reforms that have led to efficiency gains of 1 percent of GDP. Part of Kenya’s Vision 2030 is to enhance the production of affordable and reliable electricity of energy generation of 23,000 MW from the current 1,735MW. A nuclear energy plant is to be set-up by 2022 which is expected to generate 1000 MW, coal mining is about to be started, geothermal energy is being boosted this is to deviate from the dependence of hydroelectricity which isn’t reliable. In the case of the water sector, Kenya has already established a Water Resource Management Authority.

Expansion and growth of infrastructure is imperative to real estate developments. The high property prices are reflective of the valuation property investors are taking to determine the value of their land or rent charged.

PHOTOS: Nairobi’s Jomo Kenyatta International Airport Opens Grand New Terminal 1A

JKIA Terminal 1A | KAA Facebook

JKIA Terminal 1A | KAA Facebook

The Jomo Kenyatta International Airport (JKIA) Unit 4 (now dubbed Terminal 1A) project is finally complete, after close to 4 years of construction and over 9 years of planning and design.

The World Bank has been a critical partner in both the original planning and design of the extension of the Airport in 1972, and the refurbishment and construction of the new wing since 2005 that’s set to drastically increase the capacity of what’s widely considered the Air Hub of East and Central Africa.

Opened in 1958 by Sir Evelyn Baring, on behalf of the Queen Elizabeth, the Queen Mother who was delayed in Australia, JKIA was known as the Embakasi Airport, but later renamed Nairobi International Airport after Kenya gained independence. After President Kenyatta died in the late 70s, the Airport was again renamed in his honour.

ALSO READ: Architectural History of Nairobi, Kenya’s capital

Kenyan-Canadian Architectural firm Queen’s Quay Architects International and Mueller International won the consulting rights in 2004 to carry out future expansion requirements, by no means an easy feat for an International Airport that hadn’t received any development for at least a generation. In 2011 alone, it’s estimated that over 5 million passengers used JKIA, designed to carry at least half that human traffic.

kaa change

At a cost of Kshs 9.3billion, work on the expansion began, with the new Terminal 1A set to handle an additional 2.5 million passengers a year, as an extended parking area will fit about 1,500 more vehicles. Chinese firm Wu Yi Co were contracted in 2006 by the Kenya Airports Authority for construction and the project was meant to be completed in August 2013, but delayed until mid this year as furnishing materials were still being sourced and fitted.

ALSO READ: Africa and its magnificent Parliaments

KAA renamed each of the Terminals to keep in line with International standards and expectations, as the Arrival and Departure wings have completely been separated, a sigh of relief for Security. 32 check in counters, 7 boarding bridges and a completely automated baggage handling system are some of the features passengers expect to see at Terminal 1A. President Kenyatta, the late Jomo’s son, officiated over the opening of the new Terminal on July 7th 2014, as it will undergo a trial run for at least 2 weeks before a full-on service expected in August.

jkia over

jkia over 2

Design Elements of JKIA Terminal 1A | E3 blog

But this is just step one; in anticipation of an even more robust feature, the ground-breaking of the largest Airport terminal on the continent took place in December 2013 for the JKIA’s Greenfield Terminal. That needs a post on its own.

Images of the new Terminal via Kenya Airports Authority:

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The Significance and Magnificence of Buildings often Ignored

The Kenyatta International Conference Center | MY DESTINATION

The Kenyatta International Conference Center | MY DESTINATION

Robertson Davies once said that a truly great book should be read, in youth, again in maturity, and once more in old age; as a fine building should be seen by morning light, at noon and by moonlight.

I personally reckon a great building should be like love; exciting when it is new; dazzling when it is mature and satisfying and permanent when it grows old.

A great building, wrote Louis Kahn, must begin with the immeasurable, must go through the measurable means when it is being designed, and in the end must be unmeasured.

Let me first state here that I am not an addict of buildings; I am more of an unwilling enthusiast. My passion however, is history, and buildings are simply history cast in stone. You see if you look at any building; you can easily see the aspirations, the hopes and the achievements of a society; the Arc de Triomphe (in Paris) for example was commissioned in 1806 after Emperor Napoleon’s victory at Austerlitz.

Buildings glorify what a society deems to be glorious. In ages past,for instance, buildings immortalized conquests; ancient buildings like the Al Hambra remain testament to the Muslim domination of Europe. Today buildings like the Burj Khalifa try to recapture the Islamic renaissance. In today’s world, where wars are not fought in battle fields but in stock markets and through trade, has it ever occurred to anyone that banks tend to have some of the most imposing and elaborate buildings? London’s tallest building, the Shard, is owned by a consortium which includes the Qatar National Bank, QInvest and the Qatari Islamic Bank.

The Shard in London

The Shard in London

 

If you look at the list of the World’s tallest buildings it will occur to you that a majority of them have a relationship with banking, trade and finance.

Click here to read more on some of Africa’s, and the World’s, tallest buildings

Buildings also play another role; they tell you what a society considers moral or religious. A lot of buildings of note in ages past tended to be places of worship; Islam gave us Charminar and the Shah Mosque – Egypt gave us the Pyramids which played a religious role, Greece was decked by elaborate temples. Christianity provided numerous medieval churches; Isn’t it strange that brothels, for instance, have always been located at the dingy, dark areas since antiquity?

In short, what society is ashamed of cannot be cast in stone, meanwhile every city you can imagine has a tomb to an unknown soldier to celebrate virtues such as bravery or sacrifice.

Mount Rushmore is a sculpture that was intended to represent 150 years of American history; of those years, only Washington, Jefferson, Roosevelt and Lincoln were chosen to have their faces on the rock; could you imagine the catastrophe if someone like George Bush Jr. was cast on that mountain?

The Taj Mahal in India | SANTABATA

The Taj Mahal in India | SANTABATA

 

The Taj Mahal was built during Shah Jahan’s empire and it was the high point of the Mughal dynasty, and it was attribute to the love of his life; his wife Mumtaz, who died while giving birth to their 14th child. Do you think he would have built it for some mistress?

Like Aldous Huxley once said – ‘Marble, I perceive, covers a multitude of sins.’

 

| The article is a guest post written for A Chiselled Cornucopia by my best buddie, Joseph Kongoro @josekongoro