A Developer's Guide to Starting Out

Land buying in Kenya has been viewed as a valid and secure form of investment for many years. For some, their land purchase was influenced by a development idea while others took it up due to its good price with no ideal use in mind. But as it turns out, the site isn’t as perfect as you thought. Many property developers find themselves in this situation.?

Finding the best use for your development is a task of its own but you can make a great start if you know what to avoid and what factors to consider. In this article, we shall look into the types of land uses and the factors influencing your development choice. Land provides vast uses as it is a staple for all economic and cultural activities.? Public and private lands frequently represent very different uses. Some of the options include

Commercial use; refers to any property used exclusively for business-related purposes or to provide a workspace rather than a living space. Most often than not, commercial real estate is leased to facilitate income-generating activities. It includes several categories such as office spaces, hotels and resorts, healthcare facilities, malls and restaurants.?

Industrial use; Involves using land and buildings for manufacturing, processing, bulk storage, warehousing, servicing and repair activities.

Residential use; These buildings are designed to be residing homes for people. This includes apartments, semi-detached and detached houses, ancillary residential units, townhouses, self-contained accommodation, and new allotments on zoned residential land.?

For the success of these developments, consider proximity to amenities such as supermarkets or malls, restaurants and schools. Infrastructure such as water, electricity, transportation and access to commercial hubs are significant considerations.

Agricultural use; This could be a parcel of land or structure affixed to the parcel that is used for the production of one or more agricultural commodities or products.

Education and Institutional use; This includes all institutions offering education from pre-primary school to tertiary education institutions.

Public Use: This includes land owned or managed by the government.

Public Utilities: This includes service amenities such as water, power and sewer line way leaves.

For best-case use, the following factors will influence the choice of development suitable for land

Zoning guidelines

All Counties are mandated to have Physical land use plans. These plans guide land development in the said areas. Therefore before you decide what use you want to put on your land, confirm with the relevant county planning department to ensure the use is allowable in your area. These plans also guide plot ratios, ground coverage, building heights, and lines.?

Demand?

It pays to check the demographics of the location you are developing in. It will tell you if there is a demand for that type of amenity or home in the area. There is no use in building a house you can’t sell. It’s also useless to invest in a facility no one in the neighbourhood needs.?

Take your time to gain knowledge about your target market.? You may already have some sense of the market when you are beginning to consider a site or development concept.? Keep a constant eye on trends, watching other developers and looking for new niches to fill in the market.

Professional Due Diligence

A feasibility study or analysis is the foundation upon which your development project plan resides to determine the viability of your project. It is an assessment of the pros and cons of your proposed project that is conducted by analysing technical, economic, legal, demographic, operational and time feasibility factors.?

Proper feasibility analysis takes time, expertise and will cost some money. The outcome of that study may mean withdrawing from the project or choosing a different approach, which saves you from running at a loss and when it’s too late to stop.

If you’d like some guidance on your real estate project, the Eliye Consults team incorporates seasoned professionals to solve all your pre and post-site needs. We process and manage the various statutory approvals and development permissions for construction projects. We also offer feasibility studies and other development consultancy services. Feel free to contact us for any development queries.