This is Africa. Overpopulated, little space to expand to. There is no such thing as a property bust. The over-leveraging problem and imaginary 'funds'that caused the American crisis does not apply here.

with akina centum,NSSF,Reneisance investing heavily in real estate and banks hawking morgages we'll definately have property bust in 3-4 years. This is already evident in the houses for letting

It has been my conviction for some time now that when moving into the property market one is going to have to be increasingly shrewd. I think the market at the very top of the pyramid (high-class homes) is moving towards saturation.

With regards to the middle market segment, Renaissance Capital, Centum, and Stanbic Investment Management Services moving into property, as you are pointing out, away from the more traditional investment areas like stocks and bonds. I cannot see these entities building low cost housing. I think they will invest in projects to house the upper middle/middle class. Hence that segment will move towards saturation as well.

Hence my view that if one is moving into property, low-cost housing is the way to go; demand is higher and will last longer at the lower end of the pyramid. These factors are particularly if one does not have the capital to develop property right now; and when one is ready to move into developing property, these factors will have had a longer time to affect the market.

@Injere, funny i was thinking on the same. Questions to be answered by anyone. What supports the valuation of the property market in Kenya? Apart from the rights issue that was offered by KCB purposely for mortgage loans, which other financial institution is not leveraged? These bonds issued are secured by what? How many Kenyans earn over Kshs 120,000 to be able to afford the loans? Remember what the bond market has done to Ireland!