7 in 10 middle-class Kenyans plan to own property in the next two to five years, a new survey reveals.
The Standard Chartered report on emerging affluence puts Kenyans to have the highest appetite to own property in a group of seven countries including Hong Kong, Nigeria, China, and Indonesia. The other countries sampled in the study include India and Singapore.
The report titled The Emerging Affluence Report 2015 notes that the properties that Kenyans hope to own are mainly for investments. “Appetite for buying property is strong in the medium term, with nearly half planning to buy in the next two to five years, compared to just a quarter in the next 12 months,” said the report. The report notes that despite Kenya’s relatively low levels of confidence in their country’s growth prospects, the appetite to spend on property is still high. However, in the next 12 months, emerging affluent Kenyans would like to put more of their savings in their children’s education. More than half of the emerging affluent say that they would prioritise their children’s education.
In fact, saving for education is the priority among most emerging affluent Kenyans with 55 percent saying they will put their money in education, 50 percent saying they will prioritise emergencies while 45 percent said they would deposit properties. However, only a third of the affluent emerging Kenyans-35 percent- would like to acquire new property in the next 12 months. Emerging affluent Kenyans though cautious of their country’s growth prospects are ambitious and confident on their personal finances, said the report. “Launching a business is a top priority longer-term, and almost all have a high degree of confidence in achieving their goals,” read the report in part. Kenyans confidence level which stood at 56 percent was better than Hong Kong’s alone. Kenya’s economy is improving and the education system had also improved, according to the report. However, insecurity is a major issue which is holding back confidence. The main reason for Kenya’s confidence included good job opportunities, good infrastructure and infrastructure development in order of importance. incomes rise In the developing markets, travelling abroad is not a priority for the majority in the next year with more Kenyans about 43 percent saying that they plan to travel within the country in the next one year in what is seen as a boost to domestic tourism. A paltry 3 percent would like to travel to Uganda while another 3 percent would like travel to the United States. However, the emerging affluent in India, Indonesia and Nigeria say it is more important in the next two to five years, which is most likely linked to an expected rise in disposable incomes. The marked exception is in Kenya, where traveling abroad is not a priority
The report also shows that the 30 percent savings by consumers in the emerging economies of Kenya, Nigeria, Indonesia, China and India is six times more than what consumers in the developed countries such as the United States and United Kingdom expect to save.
Nearly two in three of the emerging affluent have seen their incomes rise in the past year, and almost three in four expect a rise in the next year, according to the report.
Source: Standard Digital