The Developers Digest Q1 Issue

22
Have Your Say
Zoomers in Real Estate –
How Demographics are
Driving Affordability and
Shaping Infrastructure for
New Stakeholders
By Fidel Mwaki
Founder, Fidel Mwaki & Company Advocates
As a member of the legal fraternity, it is no
longer surprising to see so many young
people investing in real estate in urban areas.
In the last decade, the market shift towards
affordable housing and rentals is no longer just a
talking point; it is happening everywhere in our
towns and cities. Changed demographics are playing
a critical role in decisions by developers and property
managers on how new projects can be better
structured for a younger population, and their needs
are driving the design and operation of a variety
of developments, including purpose-built student
accommodation, reasonably priced residential
housing, and trendy commercial spaces.
“Generation Z” (or Zoomers) represents a huge
percentage of the population in Kenya today, many
of whom study or work in urban areas. Zoomers
place certain factors above others when interacting
with real estate, whether as students, working
professionals, or young investors, such as:
• Price versus Comfort
Many developers are currently struggling with
how best to connect affordability with appealing
aesthetics and decent living standards. This
requires a bit of give and take, but the end goal
should be real estate products that Zoomers can
actively invest in without denting their pockets.
• In-house facilities
Availing communal meeting points for young
residents to interact with each other heightens
the importance of having a tailored variety of
amenities within residences that often now
include swimming pools, recreation areas, and
chill spots.
• Connectivity at home
Up-to-date technology infrastructure with 4G/5G
networks within residences is critical to enabling
young residents’ study from home, enhance
their online visibility, and encourage business
pursuits as promising entrepreneurs, creatives, or
celebrities.
With so many young people taking a keen interest
in real estate, the leadership within the sector
must adapt their approach to this new generation
of actors who operate with a different attitude
that is both refreshing and challenging in equal
measure.
Some solutions to consider from a legal, sales and
financial perspective are:
• A focus on flexible pricing will allow Zoomers
to access real estate opportunities at a young
age, and it is incumbent upon financiers and
developers to find a way to establish payment
Adopting a Long-term Perspective in the Real Estate Sector