Real estate is defined as the land and any permanent structures or improvement attached to land. Real estate in the most stable investment that one can think of here on earth. In Kenya today the real estate sector is contributing approximately 14% of the total national GDP. Some invest for ownership other invest commercially making real estate their business. This article aims at what a commercial real estate investor should consider before thinking of erecting that rental apartment building among other for income generation 

Some things to consider when investing in Commercial real estate properties:

Your goals and risk tolerance: Real estate investing can have different objectives, such as income generation, capital appreciation, diversification, or tax benefits. You should also assess your risk tolerance and how much time and money you are willing to commit to your investment. 

The type of real estate: There are various ways to invest in real estate, such as buying physical properties [owning a building], investing in REITs (real estate investment trusts), or using online platforms. Each option has its own advantages and disadvantages, such as liquidity, fees, returns, diversification, and management. 

The location and market conditions: The location of your real estate investment can affect its value, demand, rental income, vacancy rate, and appreciation potential. You should research the local market conditions, such as the economic growth, population trends, supply and demand, and competition. 

The financing and taxes: Real estate investing can require a significant amount of capital, especially if you are buying physical properties. You should consider your financing options, such as mortgages, loans, or partnerships. You should also be aware of the taxes and fees associated with real estate investing, such as property taxes, capital gains taxes, depreciation, and maintenance costs. 

The due diligence and analysis: Before investing in any real estate project, you should conduct a thorough due diligence and analysis of the property, the seller, the tenants, the cash flow, the expenses, the return on investment (ROI), and the exit strategy.

We can help you,

On our website listings, we have commercial properties for sale and others vacant ideal for commercial development. We as well give guidance on this space, helping you identify areas viable for such undertakings, from guiding you to acquire that vacant land, doing architectural design and doing construction management on your behalf for commercial building, high-rise rental apartments and residential houses. Let’s us walk you through the journey, engage with our team.