A new index to measure the performance of the real estate market in Kenya will help potential investors assess opportunities in the sector. The initiative is being coordinated by Kenya Real Estate Index (KREX), a consortium of real estate companies, financiers and other interests, with government backing, the state-owned Daily Nation reports. Kenya already has indices to measure financial security, stocks and shares, consumer prices and corruption perception but not the property market, despite the increase in investment activities in recent years.
The index, announced in early March, is expected to take two years to develop at an estimated cost of Ksh20 million. Thereafter, KREX will publish quarterly reports covering property values, rental trends, occupancy and vacancy levels and building operational costs. Initially the index will only cover Nairobi before being extended to other areas. If all goes to plan, Kenya will be the second country in Africa after South Africa to have a real estate index.