The Pros and Cons of Buying Off-Plan Property in Kenya

You see glossy brochures for new apartments with 20% discounts. Developers promise luxury finishes and high returns. But should you buy property that doesn’t exist yet?

Off-plan purchases can be profitable—or disastrous. Here’s what you must know before committing.

What is Off-Plan Property?

You buy a house or apartment before construction finishes, based on architectural plans and show units. Payments are typically staged:

• 10-30% deposit
• Installments during construction
• Final payment at completion

The Advantages

1. Lower Purchase Price

Developers offer discounts of 10-30% to attract early buyers.

Example:
A KSh 10M apartment might cost KSh 8M if bought off-plan.

2. Flexible Payment Plans

Many developers allow:

• Monthly installments instead of lump sums
• Bank financing only at completion

This helps buyers who need time to arrange funds.

3. Potential for Appreciation

If the area develops as planned, your property could be worth more at completion.

Case Study:
Apartments in Ruaka sold for KSh 6M off-plan in 2018. By completion in 2021, the market value reached KSh 9M.

4. Customization Options

Early buyers sometimes choose:

• Floor tiles
• Kitchen finishes
• Paint colors

The Risks

1. Construction Delays

Common reasons for setbacks:

• Funding shortages
• Permit issues
• Contractor problems

Reality Check:
A 2023 survey found 42% of Nairobi off-plan projects delivered late.

2. Quality Disappointments

The finished unit might differ from the promises. Common issues:

• Smaller room sizes
• Cheaper materials than shown
• Missing amenities (gym, pool)

3. Developer Fraud

Some scams to watch for:

• Selling the same unit to multiple buyers
• Disappearing with deposits
• Using your payments to fund other projects

Red Flags:

• The developer refuses to show construction progress
• No past completed projects
• Vague contract terms

4. Financing Challenges

Banks may:

• Decline mortgages if the project stalls
• Revalue the property lower than the purchase price

How to Protect Yourself

1. Research the Developer

Check:

• Completed projects (visit them)
• Company registration details
• Customer reviews

2. Verify Approvals

Ensure the project has:

• NEMA environmental impact approval
• County government building permits

3. Get a Lawyer

Have them review:

• Sale agreement
• Title deed status
• Penalties for delays

4. Visit the Site

Monthly visits help you:

• Monitor progress
• Spot potential problems early

5. Negotiate Payment Terms

Push for:

• Payments tied to construction milestones
• Bank guarantees for your deposit

Who Should Consider Off-Plan?

Good For:

• Long-term investors willing to wait
• Buyers who want to spread payments
• Those who trust reputable developers

Avoid If:

• You need immediate occupancy
• You can’t afford the risk
• The developer is unknown

Final Thought

Would you prepay for a car you’ve only seen in pictures? Apply the same caution to off-plan property.

The discounts are tempting, but the risks are real. Do your homework—or wait for completed units.

Looking for verified properties? Browse completed listings on Jamii Properties today.