Investment
How to Evaluate an Off-Plan Property in Nairobi
Off-plan can be a smart way to enter the market — if you do the homework. A checklist for buyers and investors.
· 6 min read
Buying off-plan means committing to a property before it is built. Done well, it can mean a lower entry price, a flexible payment plan and a new home finished to your taste. Done carelessly, it can mean delays and uncertainty. Here is how to evaluate an opportunity.
1. The developer
The single most important factor is who is building. Look at completed projects — visit them if you can — and ask how closely they were delivered to the original timeline and specification.
2. Approvals and title
Ask for evidence of approvals for the project and confirm the title position of the land. Your advocate should review these before you pay a deposit.
3. The sale agreement
Read the agreement carefully, with legal advice. Pay attention to:
- The payment schedule and what triggers each payment
- What happens if completion is delayed
- The specification and finishes you are entitled to
- Cancellation terms and refund provisions
4. Where your money goes
Understand how deposits and instalments are held and used. Arrangements such as escrow can offer buyers additional protection.
5. The location and the end product
Imagine the building complete and occupied. Will it be desirable to live in or rent out? Consider access, neighbouring developments, likely service charges and the amenities promised.
6. Your own timeline
Off-plan suits buyers who can wait. If you need to move in or earn rental income by a certain date, factor in the possibility of delay.
Our advisors can walk you through current off-plan opportunities and the questions specific to each project.
