Why Rich Kenyans Are Buying Dubai’s Most Coveted Homes

Wealthy Kenyans are increasingly buying apartments in Dubai to accommodate family members and business partners who frequently travel to the United Arab Emirates.

This has prompted several Dubai property agents to make trips to Nairobi as they seek to cut multi-million-shilling deals with Kenyans eyeing property abroad.

Dubai-based Danube Properties, for example, was in Nairobi recently to scout for buyers – a trip that saw the firm selling five properties to Kenyans in four weeks.

The success of the tour prompted the company to plan a second trip.

“Kenya is emerging as an important market for us where affluent families are buying apartments to facilitate residence for their members pursuing an education or to house business partners who often visit Dubai,” said Danube’s Alice Maigida.

Holiday homes

According to Maigida, a majority of Kenyans buying property in Dubai are interested in holiday homes and residences for children attending college.

“Some also seek to own fully furnished homes as an investment that can be leased to other Kenyan families visiting Dubai for holiday,” she said.

Dubai laws facilitate the tax-free purchase of property and an automatic issuance of a two-year residency visa for buyers and their family members.

“It is automatically renewable after every two years and the Dubai government is actively involved in every step of construction where their task is to ensure the building is up to the required standard,” says Danube’s Arslan Arshad.

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Payments made are received by the Dubai Lands Office, which registers a buyer’s interests. The office issues a title deed on completion of payment.

“As a developer, you never touch the buyer’s cash until you have delivered on the project. This ensures all transactions are above board,” Arshad said, adding that the company is scouting for off-plan buyers of upcoming properties.

Sh66 million

Emaar Properties, the largest property developer in Dubai, recently marketed its three properties in Nairobi: The Address Residence Sky View, Burj Vista II, and The Hills where prices start at Sh66 million for a one-bedroom unit.

Other Dubai-based property developers; Damac Properties, Deyaar, and Seer Acquisition have also toured Nairobi to promote homes for sale in the Emirates.

A past report by Knight Frank showed Dubai is the second favourite investment destination after the U.K. where 25% of super-rich Kenyans invest in property.

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