Oversupply of commercial property may spell bad business for investors and developers. However, it comes as good news to tenants who are looking for office space. It has forced developers and mall owners to reduce rent prices in a bid to remain competitive and attract clients.
According to Data Fintech’s Real Estate Prediction report, tenants can expect a further 6.90% drop in average rent prices from Ksh. 196 per square foot to Ksh. 182 per square foot in May 2018 in commercial property located in Nairobi. Investors on the other hand can expect yield to remain fairly constant over the next 6 months to close at 17.8% against 18.86% recorded in November 2018.