Property developers freeze fresh investments on low gains and occupancy

Ascent Capital, a PE based in Nairobi stated that it will not invest in Kenya’s real estate sector for the short term.
Their view is that lot of capital has been catalyzed to invest in real estate and there is little value in terms of returns.
The Kenyan property market has been struggling in the past few years due to difficulties in disposing of new units amid an oversupply of both commercial and residential spaces.
The depressed property market was worsened in 2019 by job losses witnessed across many sectors due to the Covid-19 pandemic, which led to declined demand and increased auctions of homes linked to loan defaults.

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