Equation is easy<br><br>Booming economy = country in growth = bank has plenty of money to spend = buy land at low price while it is still possible and build complex = and they don&#39;t care if they rent the place or not as long since they own most of the land and thus control the price (like that Emirates family who own all the Picasso paintings, since he has them all, he can control the price market) ... <br>
<br>This is capitalism... Rich get richer, poor get poorer... Last, someone told me that in Nairobi, the market is own by the same people, either rich guy who started in 2000 (after Kibaki election) or banks.<br><br>Just watch &quot;The Inside Job&quot; - <a href="http://www.imdb.com/title/tt1645089/">http://www.imdb.com/title/tt1645089/</a> - a documentary movie about financial crises of 2008... and you will learn that banks are the one playing with the land/construction market. In Spain, there are hectares of empty houses  <br>
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<span style="font-size: 18px; color: rgb(255, 153, 0);"><strong>TheBigBoss</strong></span><br><span style="font-size: 14px; color: rgb(51, 153, 0);"><strong>Nairobi, Kenya</strong></span><br><span style="font-size: 8pt; color: rgb(11, 83, 148);"><strong>Email:</strong></span> <a href="mailto:TheBigBoss@peperuka.com" title="Envoyez-moi un email" style="font-size: 8pt; color: rgb(11, 83, 148); cursor: pointer;"><span style="color: rgb(255, 0, 255);">TheBigBoss@peperuka.com</span></a>
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</div></span><br><br><div class="gmail_quote">On 29 November 2010 08:52, aki <span dir="ltr">&lt;<a href="mailto:aki275@gmail.com">aki275@gmail.com</a>&gt;</span> wrote:<br><blockquote class="gmail_quote" style="margin: 0pt 0pt 0pt 0.8ex; border-left: 1px solid rgb(204, 204, 204); padding-left: 1ex;">
<div>I read various articles on the amount of new construction going on and this sector to me is quite baffling. I think the recent report by the CBK puts home mortgages at around 14,000 kenyans. Our borrowing bank interest rates and repayments are still too high compared to incomes. Where are people getting the money to buy/invest into real estate because everywhere you see, some new construction on residetial types is coming up and also being sold quite fast. Property prices have really shot up while earnings have not increased in comparison. So who is buying these expensive properties?</div>


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<div>Any economist here in skunks KE to add some insights. :-)</div>
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<div>Rgds.</div>
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