The property development company focuses on building at least 5,000 house units in a year from 2019 in line with the President’s call of providing very affordable houses
When Mahiga Homes was established months ago, the directors had one thing in mind- providing affordable houses that also appreciate in value. “The company was born out of the desire to transform peoples’ lives by fulfilling one of the basic needs of a human being, which is shelter,” says Mr. Patrick Muchoki, managing director at Mahiga Homes.
The property development company has differentiated itself from other providers in the market in terms of pricing. “Our houses are highly discounted to allow house buyers’ to get value inthe short term,” he says, adding that “The price has never gone above Ksh. 3.75 M.”
“We walk thejourney with the customer by way of them paying deposit and thebalance within a stipulated period of time at 0% interest.”
Currently, Mahiga Homes has six projects namely Conerstone I, II, III and IV Estates, Kamulu and RockVilla Gardens.
Cornerstone is a designed gated community located along Kenyatta Road and 10 minutes’ drive off Thika superhighway. Launched on February this year, Cornerstone Icomprises13 units, and will be handed over on 25th August. The houses were sold at Ksh. 2.9 M.
“At Mahiga, we have simplified the home buying process. Home buyers are required to identify what they want, we then match that with what we have, and finally, we build what you need.”
Three-bedroom bungalows model
There is no doubt that Mahiga Homes is a different kind of a real estate company. Unlike most property developers who are currently investing in apartments, the company’s focus is different. “Our brand is three-bedroom bungalows,master en suit,eachsitting on a 40 by 80 parcel of land,” offers Mr. Muchoki.
According to managing director, the idea was inspired by the fact that for a long time, the family unit has been forgotten. In some cases, children of the opposite sexare forced to share a bedroom and thismay result in decaying morals. That is why; Mahiga Homes came up with a model that allows opposite gender siblings to sleep separately.
Furthermore, each house unit sits on its own compound, meaning that there is some privacy, and parents can bring up their children in the way they desire.
So far, Mahiga Homes has housed over 100 families, and according to Mr. Muchoki, this is one of their greatest achievements.
He believes that in the real estate sector, there are many opportunities but it all depends with the individual. It means driving your business towards fulfilling the basic needs of a human being.
Mr. Muchoki notes that there are many challenges facing property developers among them availability of land. “For us to offer houses at affordable prices, we must get fairly priced land in an area with good infrastructure such as roads, water and electricity.” This is however not possible, especially in Nairobi.
In most cases therefore, when developers decide to develop land in an area with no infrastructural development, theyare forced to provide such amenities, something that drives construction costs higher.
Additionally, fuel prices have a direct impact on the cost of construction. “Transport accounts for 30 per cent of such costs,” reveals Mr. Muchoki. This is a major blow to developers considering that fuel prices are expected to rise come September with the impending introduction of value added tax (VAT) on petroleum products, an eventuality that has been on the cards over the last two years.
In spite of the various hurdles, Mahiga Homes focuses on staying true to its vision of offering very affordable houses. “Our target is to build at least 5,000 of such units in a year from 2019, thus aligning ourselves with the president’s call of providing affordable houses,” says Mr. Muchoki, adding that “Our goal is to provide a three-bedroom bungalow at less thanKsh. 1.2 M.”The managing director believes that the world is dynamic and there are new ways of construction apart from brick and mortar.
The company also plans to start doing affordable holiday homes that will cost Ksh. 5 M or less.