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The Makasembo Project Kisumu, the vibrant lakeside city of Kenya, is not only a hub for culture and commerce but also a rapidly growing center
Kisumu home to the Makasembo housing project, the vibrant lakeside city of Kenya, is not only a hub for culture and commerce but also a rapidly growing center demanding affordable housing solutions and lucrative investment opportunities. This report, brought to you by Southfront Properties, a leading Kenyan real estate firm specializing in wealth building strategies, shines a spotlight on the Makasembo Housing Project, a landmark development by LAPFUND, and examines the broader landscape of affordable housing investment in Kisumu for 2025.
We will explore the Makasembo project in detail, analyze its investment prospects from a wealth-building perspective, and provide a market overview to help you understand the exciting potential within Kisumu's affordable housing sector and how Southfront Properties can guide you.
The Makasembo Housing Project, spearheaded by LAPFUND, is strategically located in the heart of Kisumu City, placing it conveniently near Moi Stadium and Kisumu Polytechnic. LAPFUND, a reputable retirement benefits scheme serving County Governments and Water Companies, is committed to delivering over 2,000 apartments to meet the increasing demand for quality, affordable homes in Kisumu. Nestled next to the established Polyview Estate, Makasembo residents will enjoy access to existing community amenities and a well-connected location. Southfront Properties recognizes the strategic advantage of this location for both homeowners and investors.
Spread across approximately 11 acres, the Makasembo project is thoughtfully designed to offer a diverse range of housing options for varying budgets. The development features a mix of four low-cost housing blocks and two medium-cost housing blocks, offering unit types from one to three bedrooms. With a total of 1,870 apartments and 1,754 parking spaces, and a comfortable 34% ground coverage, Makasembo is set to be a significant residential community. Furthermore, resident-focused amenities include a daycare center, nursery school, ample parking, beautifully landscaped gardens, and two reliable boreholes for a consistent water supply. Southfront Properties highlights the comprehensive amenities as key drivers for tenant appeal and long-term investment value.
Makasembo offers a spectrum of unit types to cater to different needs and investment levels. The pricing structure is designed for affordability, ranging from KES 1,800,000 for a one-bedroom low-cost unit to KES 5,850,000 for a three-bedroom medium-cost unit.
|
Unit Type |
Size (sqm) |
Price (KES) |
Availability (Phase 1) |
|
1-Bedroom (Low-cost) |
30 |
1,800,000 |
22 |
|
2-Bedroom (Low-cost) |
45 |
2,700,000 |
Sold Out |
|
3-Bedroom (Low-cost) |
60 |
3,850,000 |
40 |
|
2-Bedroom (Medium-cost) |
60 |
4,450,000 |
Available |
|
2-Bedroom (Medium-cost, all en suite) |
80 |
5,000,000 |
Available |
|
3-Bedroom (Medium-cost) |
80 |
5,850,000 |
Available |
Southfront Properties notes the attractive entry points for investors, particularly the one and three-bedroom low-cost units, and the available medium-cost options.
LAPFUND, as the developer, brings credibility and experience to the Makasembo Housing Project. Their successful track record in affordable housing, including the 872 low-cost units at Kisaju-Kajiado for Mwalimu National Sacco, demonstrates their capability in this sector. Southfront Properties emphasizes LAPFUND's reputable background as a key factor for investor trust and project delivery.
Leading the project is AAKI Consultants, heading a consortium of experienced professionals. This team includes Quantyman Associates Limited (Project Quantity Surveyors and Financial Advisers), Professional Consultants (Project Civil and Structural Engineers), Norkun Intakes Limited (Project Services Engineers), Lariak Landscapes Limited (Project Landscape Architects), South Front Properties (Project Marketers), and Hope Urban Environmental (Project EIA Experts). Southfront Properties is proud to be the Project Marketers for Makasembo, bringing our wealth-building expertise to this significant development. This strong collaborative team ensures expertise across all facets of the project, further solidifying investor confidence and project success, as assessed by Southfront Properties.
Makasembo is designed to appeal to a broad range of buyers, including low and middle-income families, first-time homeowners, and investors. The affordable price points and varied unit options make homeownership accessible to a wider segment of the population. Buyers also have the flexibility to choose their preferred floor from the 1st to 5th floor. Southfront Properties identifies this diverse target market as a strength, indicating a robust and consistent demand for Makasembo units.
Construction began in June 2022, with Phase 1 (comprising three blocks and a daycare center) designed in 2022. Phase 1 is nearing completion and is expected to be ready for occupation by the end of 2025. Phases 2 and 3 are planned to commence in 2024, with anticipated completion in 2026. Southfront Properties notes the advanced construction progress and phased rollout as positive indicators for timely returns on investment.
The Makasembo Housing Project offers compelling investment potential driven by its strategic location, affordability, and anticipated returns. Funded by LAPFUND (not a national housing project), Makasembo's central Kisumu location provides excellent connectivity to amenities, transport, and employment hubs, making it highly desirable for both residents and renters. Southfront Properties highlights the central Kisumu location as a prime driver of rental demand and property value appreciation.
Investors can expect attractive rental yields, projected around KES 40,000 for a two-bedroom medium-cost unit. The project's impressive sales performance, with over 56% of units sold within the first year, underscores the strong market demand for this type of property in Kisumu. Southfront Properties' market analysis confirms these attractive rental yields, making Makasembo a high-potential investment for passive income and long-term wealth growth.
Makasembo distinguishes itself by providing a holistic community living experience, boasting amenities that enhance resident lifestyle and tenant appeal. These include:
Pre-school
Ample Parking
Solar Power
Borehole Water Supply
High-Speed Lifts
Landscaped Gardens
Communal Play Areas
Integrated Daycare Center and Nursery School
Southfront Properties emphasizes that these comprehensive amenities are crucial for attracting and retaining quality tenants, maximizing occupancy rates and rental income for investors. These features collectively enhance the quality of life for residents and increase the project's attractiveness to both homeowners and investors seeking long-term tenant appeal, as validated by Southfront Properties' market expertise.
Kisumu's affordable housing market is fundamentally characterized by high demand and a significant supply shortage. Population growth, coupled with rapid urbanization, is driving an ever-increasing need for affordable housing options. However, the current supply of affordable units is failing to keep pace, resulting in a substantial housing deficit. Southfront Properties recognizes this supply-demand imbalance as the foundational strength of the Kisumu affordable housing market, creating a secure environment for property investments.
In 2023, market trends indicated a growing preference for more affordable housing, with the low-market segment accounting for 62.3% of housing demand in the last quarter, a significant increase from 48% in the previous quarter. This trend clearly highlights the urgent need and market pull towards affordable housing solutions in Kisumu. Southfront Properties leverages these market trends to advise clients on strategic investment entry points within the affordable housing sector.
With Kenya's population projected to reach 52.4 million by the end of 2024, and urbanization continuing at a rate of 4.4% annually, the demand for affordable housing in Kisumu is only set to intensify. This escalating demand creates a robust and enduring opportunity for developers and investors in the affordable housing sector and for wealth building through strategic property acquisition, as championed by Southfront Properties.
The Kenyan government is actively promoting affordable housing development through various supportive policies and incentives. These include tax incentives for developers, such as exemptions on construction materials and reduced stamp duty, aimed at lowering development costs and encouraging investment. The government's Boma Yangu platform further streamlines access to affordable housing by providing a centralized online portal for Kenyans to register for projects and access vital information. Southfront Properties understands and utilizes these government incentives to maximize returns for our investment clients.
The government's commitment is further exemplified by initiatives like the gazetting of unit rates for the Lumumba Estate affordable housing project after 18 months, ensuring transparency and affordability. These governmental actions demonstrate a clear commitment to making housing accessible to a wider range of Kenyans and fostering a thriving affordable housing market – a market that Southfront Properties is expertly positioned to navigate for your benefit.
While Kisumu's affordable housing market presents immense potential, it's important to acknowledge existing challenges alongside the opportunities. High land costs, limited access to financing for developers, and occasional community resistance can present hurdles to affordable housing projects. External economic factors like high inflation, rising interest rates, and constrained developer financing can also impact market performance. Southfront Properties, with its deep market knowledge, helps investors mitigate these challenges and identify robust opportunities.
Public-private partnerships (PPPs) are recognized as crucial for driving affordable housing development. However, to maximize their effectiveness, it's essential to address challenges such as unclear policy frameworks and bureaucratic processes that can hinder project implementation. Southfront Properties actively monitors and advises clients on the evolving landscape of PPPs in the affordable housing sector.
Despite these challenges, the opportunities within Kisumu's affordable housing market are significant. The underserved and growing demand, coupled with government support and infrastructure development, creates a favorable environment for investment. Kisumu's ongoing infrastructure improvements, including the airport upgrade, slum upgrading programs, and road network development, further enhance the city's attractiveness for real estate investment and contribute to long-term value appreciation in the affordable housing sector – all factors carefully considered by Southfront Properties when guiding investment strategies.
Beyond the Makasembo Housing Project, Kisumu is witnessing a wave of affordable housing initiatives, signaling a strong commitment to addressing the housing deficit. The Lumumba Affordable Housing Project, targeting the provision of 2,348 units, and the ambitious LV Marina, a Sh120 billion mixed-use development including 1,200 affordable housing units, represent significant investments in the sector. The LV Marina project's vision to create an inclusive community for diverse socioeconomic groups highlights a forward-thinking approach to urban development in Kisumu. Southfront Properties maintains a comprehensive overview of all major affordable housing projects in Kisumu, ensuring our clients have access to the most promising and diverse investment options.
While direct interviews weren't provided, available information offers insights from key players in Kisumu's affordable housing landscape:
Government Officials: Emphasize sustainable and inclusive housing solutions, highlighting the critical role of public-private partnerships and community engagement. Southfront Properties aligns with these goals, advocating for sustainable and community-focused investment strategies.
Developers (LAPFUND, GulfCap Real Estate): Recognize the significant unmet demand and are actively investing in projects. They prioritize strategic location, quality construction, and attractive amenities to resonate with buyers and investors. Southfront Properties partners with reputable developers like LAPFUND to ensure our clients invest in high-quality, well-located projects.
Investors (Laptrust, County Pension Fund): View affordable housing as a viable investment with both financial and social returns, aligning investments with community needs and sustainable development goals. Southfront Properties echoes this sentiment, emphasizing the dual benefit of financial returns and positive social impact inherent in Kisumu affordable housing investments.
NGOs and Community Organizations (Homeless of Kisumu, KISORA): Advocate for housing rights of vulnerable communities, emphasizing the need for solutions that cater to all residents, including those in informal settlements. Southfront Properties acknowledges and supports the importance of inclusive housing solutions, recognizing the broader social impact of our investment recommendations.
The Makasembo Housing Project stands out as a highly promising investment opportunity within Kisumu's dynamic affordable housing market. Its strategic location, affordable pricing, and robust return potential make it an attractive proposition for both individual homeowners and investors seeking to capitalize on Kisumu's growth. With supportive government policies and increasing private sector engagement, Kisumu's affordable housing sector is poised for continued expansion and presents a strong outlook for the coming years – an outlook expertly assessed and leveraged by Southfront Properties.
Kisumu's affordable housing market, anchored by projects like Makasembo, offers a unique blend of financial returns and positive social impact. As Kisumu continues its trajectory of growth, investing in affordable housing becomes not only a sound financial decision but also a contribution to the city's sustainable and inclusive development – a win-win investment strategy championed by Southfront Properties.
Are you ready to explore the Makasembo Housing Project and Kisumu's affordable housing opportunities? Southfront Properties is your dedicated partner in navigating this exciting market.
Take the next step towards wealth building in Kisumu's booming affordable housing market. Contact Southfront Properties today for a personalized consultation and discover how we can help you leverage the Makasembo Housing Project and other prime investment opportunities in Kisumu. Our expert team is ready to provide you with in-depth market analysis, project insights, and tailored investment strategies to maximize your returns and secure your financial future. Don't miss out on the 2025 Kisumu affordable housing opportunity – partner with Southfront Properties today!
