In Kenya, there are currently about 6 major niches of real estate within which one can invest. These include:
Niche #1: land/property brokerage
A fee is charged by the mediator who facilitates a real estate transaction between the two parties.
Niche #2: land development
This is a business where one buy land and improve it by adding services and utilities such like roads, electricity, and water. He/she then divides the land into smaller planned plots and sell them out for a profit.
Niche #3: condominium development
This entails constructing a Building , dividing it into different units, and selling out the units.
Niche #4: commercial development
This is a kind of business where one construct a building and Let out each of the units at a monthly fee.
Niche #5: estate management
It is a business where one manages a property owned by someone else.
Niche #6: real estate appraisal
This requires one to be an expert specilised in land economics or real estate as well as registered and licensed by the the valuers registration board (VRB) to offer valuation services.
Recommendations
You can set up business within the 6 niches or specialize in a specific Niche
How to start a small real estates business Kenya.
- If you have very little spending money to capitalize in real estate business, begin by helping your neighbor or friends sell thier properties for a commission. As you grow, you will be able to register a formal agency and handle bigger business.
- One can as well buy land from an individual slice it into smaller plots and sell the small plots to your clients at a profit.
- Purchase many plots, say five, from a Land Real Estate Developer and when their value increases, within 6 months to 2 years, you then re-sell these same plots at a profit.
- Buy the plots, construct your own small residential units and rent them out.
- Buy several units within a condominium and then rent them out for a monthly income.
- Get a lease for a huge chunk of land, sub-lease the biggest portion of it for some monthly income while you develop a small manageable potion of this land.
- Buy a piece of land in a prime area, construct a nice home, and rent out this home for a monthly income.
- If you have a little more money, you can buy an old house, within a prime area, give it a face lift, and sell your new house for a profit.
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