Apartments cost more than bungalows


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Apartments cost more than bungalows

Artist’s impression of an apartment complex in Nairobi. PICTURES | COURTESY

Apartments are more expensive than bungalows, although the latter are larger, according to a new report that reviewed house prices in the year to December.

The Kenya Bankers Association Housing Price Index report reveals that the average price of a maisonette was 12.15 million shillings while that of apartments and bungalows was 9. 38 million shillings and 6.69 million shillings, respectively.

The average floor area of ​​an apartment—the covered built-up area covered by the house with interior and exterior walls—was 1,283.9 square feet compared to 1,631.4 square feet of bungalows. The bungalows were 1.2 times larger than the apartment, which would suggest it would be more expensive.

“Price dynamics would be determined not only by the type of house but also by the location where the house is located,” said Samuel Tiriongo, director of research and policy at KBA.

“For example, it’s possible to have a bungalow in region 1 (where say low-income households) being much cheaper than an apartment in region 3 (the high end).”

The report analyzes the three most important factors driving the evolution of house prices, including the type of house – townhouses being the most expensive, the number of bathrooms and the location of the house.

“Structural features – including basement area, number of bedrooms, bathrooms and floors – are set to drive up average house prices significantly. In particular, an additional 10% increase in floor area is observed to be associated with a 2.9% increase in the average house price, with all other factors remaining largely unchanged,” the report states.

At the end of December 2021, more people across the country bought apartments than other types of houses.

“Apartments dominate and their share has increased, accounting for 56.8% of all transactions completed in the fourth quarter, compared to 47.0% in the third quarter of 2021,” the report read in part.

“Divergence in the proportions of house types by region and between types continued to characterize market dynamics and the interplay between consumer preferences and home affordability.”

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