Tech innovation in Africa never stopped, even though many investors are skeptical as many African tech startups struggle to become profitable. Companies like Mansiondeal have launched in new African markets despite posting mixed fortunes since COVID-19 pandemic struck.
Mansiondeal is an Kenyan online real estate marketplace company founded to digitize the real estate market and connect real estate agents, homebuyers and real estate developers under one platform. It is one of the most popular real estate databases that provides real estate and rental listings to the general public for free.
Mansiondeal presents listings using photos, property prices, detailed description and neighborhood insights. This information is uploaded by local real estate agents and homeowners. Visitors can filter out information to narrow their search for homes by choosing specific locations, number of bedrooms, type of home and price range.
Why Kenya ?
According to USAID, Kenya was one of the fastest growing economies in Africa before the Covid 19 pandemic struck with an annual average growth of 5.9% between 2010 and 2018. With a GDP of $95 billion, Kenya recently reached lower-middle income status, and has successfully established a diverse and dynamic economy.
Kenya serves as the point of entry to the larger East African market and ranks among Africa’s four biggest destinations for tech start-up funding after Nigeria, Egypt and South Africa.It had 87 startups (15.4 per cent of Africa’s total) raise funding and together they secured $291.98 million or 13.6 per cent of the total $2.14 billion raised.
The Kenyan real estate market
A stable political environment, as well as favorable macroeconomic conditions such as a relatively stable interest rate environment has led to positive developments in the real estate sector.
The urban population in Kenya is estimated to increase at 4.2% per annum which increases pressure on the demand for housing.
In Kenya today, the property market is responding to demand that has been created by the expanding middle class with disposable income and able to service their mortgages.
It is projected that Kenya will have a population of over 60 million people by the year 2030 and more than 50% of them will be living in urban areas, creating a huge demand for new housing units. There is therefore an urgent need to increase the supply of new and affordable housing units.
The Kenyan mortgage Industry
Kenya’s mortgage industry has been on a growth path and is becoming even more competitive. Mortgage lending has grown significantly, 10 years ago it stood at 3.7% of Kenya’s GDP compared to 70% and 50% in the US and UK, respectively.
Some of the lenders have just one or two loans on their books which may be to staff members or special customers and other banks are much larger players who see mortgages as a major business center.
The Kenya Mortgage Refinance Company (KMRC), was granted a license to conduct mortgage refinance business in 2020. KMRC offers banks and SACCOs cash for onward lending to households and offer zero stamp duty to first-time homebuyers.This has made it possible for middle and low income earners to afford homes and majority of the developers have prioritized affordable housing projects.