Assuming the market ROI of 7%, it means a rent of KES 87,500pm for the 1br property costing 15m. Adding the premium of 30% gives a figure of 114,000pm. Thus the rent for a 1br should be a minimum of KES 120,000 per month.

The world's luxury residential property markets fluctuated in 2011, with some, like Miami and London, recording major gains and others, like Singapore and Sydney, falling significantly.

But the city with the highest rate of growth in luxury real estate prices in 2010 wasn't a Chinese boomtown or European safe haven, but Nairobi, the capital of Kenya, according to a new wealth report from Knight Frank and Citi Private Wealth.

The study found that prices for high-end real estate in Nairobi jumped 25 percent in 2011. And the Kenyan Coast recorded the second highest growth, with a price jump of 20 percent. Miami came in third, with a price increase of 19.1 percent for luxury real estate, according to the study.

Ironically, some of the largest price drops were in places with the strongest economic growth, likely due to the ongoing impact of the financial crisis and the end of price booms in Asia.

So why the record growth in Nairobi? The report, which calls the increase "startling," explains:

http://www.globalpost.co...ry-real-estate-prices-th

Why a condo is so expensive compared with a house?

Real Estate Investing Questions
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Best Answer
(1) Many condos are are more likely to be newer and have newer finishes/appliances/floorplans. Many people are willing to spend a lot on these shiny things.
(2) With a condo, the exterior and common spaces are maintained by the condo association (for a price). This is an added convenience that many are willing to pay for.

(3) Although expensive for their size, condos are still cheaper than a full-sized house in similar location and finish quality. Because more people can afford them, demand is higher and therefore price.

(4) It is utterly baffling and I can't understand it. Each one must come with a hidden pot of gold because people spend SO MUCH MORE for so much less. And it's not just true for well located condos, or beautiful ones, or ones in buildings with amenities or doormen.

http://wiki.answers.com/...ve_compared_with_a_house

Time has a way of proving us wrong or right..

With 19% to 15% mortgage..a crush is nowhere insight...keep dreaming..

BTW..you dont have to live in Westlands or Kilimani..stay where you can afford...

Eventually the society balances itself..Rich, Middle Class, poor suburbs..Nothing is constant...one can move from poor suburbs to Rich suburbs and vice verse..

Comparing US housing Market with Kenya..is like comparing Communism and capitalism...