Monthly Archives: February 2015

The Idea behind Property Valuation Services in Australia

At the lower end of the scale, owner-occupiers take the form of professional and small business tenants occupying converted houses in traditionally residential areas. Property weightings in institutional portfolios in Kenya are typically around 40% but can be as high as 80%. Average pre-tax returns on commercial property were in the region of 10-14% throughout the 1990s, which, coupled with 8-10% annual capital growth, provided a safe hedge against inflation. Sale transactions are rare, partly due to unaffordable long-term finance in Kenya, which severely limits the number of potential purchasers for prime large scale properties on the market.

At the point when Procuring a Property Valuers, Prominent office buildings, including Lonrho House, Chester House, Bank House and Stanchart House in the CBD, have been on the market for between one and three years. Interest has been thin though some transactions are expected to complete in 2000.

Office leases are typically for six years with rent reviews every two years.Reviews tend to be pre-agreed, typically at 15-25% increments every two years, but can also be to open market. Rents in Nairobi are dictated more by supply and demand than inflation rates and growth.

Figure 8 shows the magnitude of rental growth in shillings over the past six years with rents on the Hill outperforming those in the CBD. Annualised rental growth since 1993 has been 14% on the Hill compared to an annual growth of 11% in the CBD. Good buildings in the CBD are letting at rents of Kshs 30-35 per sq ft per month (US$4.40-5.10 per sq m per month) exclusive of service charge. Podo Park and Lion Place achieved rents of Kshs 45 per sq ft per month (US$6.60 per sq m per month), while the Rahimtullah Trust Building on the Hill is almost fully let at between a low of Kshs 45 per sq ft and a high of a dollar linked Kshs 70 per sq ft (US$10.20 per sq m per month).

Depending on the size of the tenant and the date at which the commitment was made. Typical service charges range from Kshs 10-18 per sq ft per month (US$1.50- 2.60 per sq m per month), rising to as high as Kshs 40 per sq ft per month (US$5.80 per sq m per month) for air-conditioned space. A widening gap in rents between the CBD and outlying areas, coupled with rising fit-out costs, could slow the process of decentralisation, particularly during the current depressed economic climate.

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Property holders get the maximum amount of property – Legal valuers

Retailing provision in the CBD is dominated by mixed-use developments spread throughout the city centre. However, the need for better car parking provision, security and accessibility has led to a strong shift towards suburban shopping centres, which started in the 1980s. The suburb of Westlands, dominated by Sarit Centre, has developed into a principal retail node.

Sarit Centre, which opened in 1983, continues to be the most successful shopping centre in Nairobi. Recently extended to double its previous size, it provides approximately 215,300 sq ft (20,000 sq m) of net retail space which is anchored by Uchumi. Despite lack of sufficient car parking during peak hours, the shopping centre is trading well and currently has little fear of competition in the city.

as well as local shops serving the suburbs of Muthaiga, Karen, Lavington and Parklands. Attempts to launch a district or regional mall designed to international standard, anchored by South African majors, have yet to materialise. A residential Melbourne Property Valuers are a learned expects that consolidates assessment of the land’s quality nearby its improvements made.

Site acquisition and land assembly have proved to be additional hurdles, but there are renewed indications that a site near Dagoretti Corner and Fox City on Thika Road are under active consideration.

 Kenya’s retailing market is dominated by Uchumi, who operate 16 supermarkets and two hypermarkets, the majority of which are in Nairobi. The South African based Metro Cash and Carry and their ‘Lucky 7’ franchise have recently entered the market. Barnetts and Supreme Furnishers and the Woolworth franchises are the only South African based non-food retailers currently trading in Nairobi and have faced less local competition.

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What Does a Property Valuation Report Show?

Retail rent analysis in Nairobi is distorted by the issue of ‘key money’. Key money takes the form of a premium that can be as much as three years’ rent, paid in advance, in respect of retail units in a prime pitch at the top end of the market. Rents tend to vary in accordance with unit size and frontage in addition to specific location. The 1,000 sq ft (95 sq m) shop is the norm for a boutique style trader. The rent gap between the CBD and decentralised locations closed in the mid-1990s and Westlands is now commanding higher rents than prime CBD pitches.

Deteriorating security in the city has increased the demand for large apartments in secure, managed compounds as more people move out of detached houses on individual plots. The resulting affluence in flat dwellers has led to an improvement in the design, management and security of complexes at the top of the market with amenities including a swimming pool, satellite television and health spas becoming more the norm than the exception.

Prime multi-unit complexes are led by Riverside Park and include Clanson Court in Muthaiga, Jade Valley in Westlands and the recently completed St. Austin’s Gardens in the Lavington area. Typical units within these developments are three to four bedroom flats and town houses ranging in size from 1,800-3,200 sq ft (170-300 sq m), which tend to be in annual occupation by corporate tenants, although longer term residents now appear on the rent rolls.

 Occupancy rates of over 95% would suggest continued demand for high quality multi-units that fully meet quality and management standards. Well-planned multi-unit complexes have shown equal, and sometimes better growth valuation of your property when measured against equivalent commercial developments and could continue to do so

While individual houses in prime locations such as Muthaiga, Lower Kabete and Gigiri have maintained their value, rents for detached houses are static or falling. Single houses on individual plots also suffer from high outgoings resulting in investment returns of as little as 5%.Most individual houses therefore tend to be owner occupied, with few transactions taking place in a depressed market.

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Property valuation is the process used to find properties price

Prospects for future rental growth are location specific and will be increasingly underpinned by high quality management and security. Typical inclusive rent levels in these complexes for a three to four bedroom unit will range from Kshs 60,000 per month (US$810 per month).

Large houses in Muthaiga can still attract exclusive rents in excess of Kshs 220,000 per month (US$3,000 per month). Residential prices vary similarly from Kshs 5 million (US$68,000) for a three to four bedroom middle market apartment in Westlands to Kshs 45 million (US$600,000) for a five bedroom house in Muthaiga. Home valuation services Uganda has emerged as one of sub- Saharan Africa’s relative success stories having made great economic strides after years of political turmoil and economic disintegration triggered by Idi Amin’s rise to power in 1971

improved investment and exchange regimes and privatisation of the majority of the 100 plus public enterprises.

 Uganda registered an average annual GDP growth rate of 6.5% in the 1990s, reaching a peak of 10.6% in 1994/95. over the two years from 1996/97 but recovered in the 1998/1999 financial year, with growth of 7.8%, as climatic conditions returned to normal.

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Property valuation deal with evaluating full property to find its price

Yields on Treasury Bills, which dictate interest rates, have been below 10% over most of the past two years. Prime lending rates have declined from over 40% in the early 1990s to a present level of 14-20% for shilling loans and below 10% for dollar loans.

Uganda’s regular rainfall and fertile land provide the basis for its diverse agricultural sector, which accounts for 43% of GDP. ganda is one of the largest producers of coffee in Africa. Other principal crops include tea, tobacco and cotton. The country also has substantial deposits of copper and cobalt. Uganda’s trade balance, at minus US$1.02 billion in 1998/1999, was down by nearly 20% from the previous year and was the first improvement in a number of years.

Coffee accounted for approximately 55% of export revenues in 1998/99, followed by tea, tobacco and fish, while the main imports were machinery and fuel. Principal trading partners include Kenya, the UK and Germany. Museveni held presidential and general elections in 1996 and was returned with 74% of the votes cast. Political parties are currently banned under the Ugandan Constitution, but a referendum is to be held in late 2000 to determine whether multi-party elections should be held in future or whether candidates should continue to run for office independently of political parties.

The city’s property stock fell into disrepair until stability resumed in the late 1980s. experienced property valuer Land tenure in Uganda is complex with four different types of title in existence. The typical lease term in urban areas is 49 years

which can, in certain cases, be extended to a maximum of 99 years. The planning system in Kampala is based along the lines of the UK model. While an established planning system with statutory development plans is in place, the City Planning Authorities often lack the capacity to enforce development control and therefore rely increasingly on participation.

The growing need to upgrade the city’s infrastructure is being hampered by the increasing amount of unplanned development taking place.

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How property valuation process calculates property’s value?

Commercial leases typically range from one to six years, although terms of ten years were achieved at Rwenzori House. Where present, the frequency of rent reviews varies with most tending to be pre-agreed fixed percentage increases, although review to market is becoming increasingly used.

There are no statutory laws governing property brokerage in Uganda. fees to agents are normally the equivalent of one month’s rent, payable by the landlord. Sale fees range from 3-10% of sale price payable by the vendor. Scale fees dictate minimum legal costs of 5%, though discounts are available and are met by either party, depending on the outcome of negotiations.

Stamp duty is levied at 1% of sale price and is also applicable to leases of over three years upon registration, whereby 1% of total rent for the duration of the lease can be payable by the tenant. Income Tax on gains from disposal of assets (effectively Capital Gains Tax) was introduced in 1998 and is applicable to all property transactions at the current rate of taxation, presently 30% for corporations and a maximum of 30% for individuals.

house valuations Kampala’s CBD lies along Kampala Road in the heart of the city. The bulk of commercial development, mainly in the form of multi-storey mixed-use developments, is concentrated in this area, with new development spreading northwards into Nakasero Hill.

of moderate quality in the CBD. Rwenzori House in Nakasero came onto the market in 1995, providing nearly 4,000 sq m of high specification office space with an element of semi-retail accommodation.

(started in the late 1970s), the refurbishment of EADB House (built in the late 1960s) and construction of Centre Court, Commercial Plaza and Conrad Plaza. Most of these schemes are lacking either in design and specification or suffer.

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Property valuation deals with simple and complex process both

Rwenzori Courts in Nakasero, providing 6,200 sq m of very high specification office and quasi-retail space, reached practical completion in February 2000. Property valuation controls examining The development has attracted strong interest.

Serviced offices in Kampala are available at the Sheraton Hotel in the city centre, which has a total of 32 units. Approximately half of the units are let to long-term tenants, with the remaining units having an average occupancy rate of around 50-60%.

The most significant new supply will be the twice-stalled Workers House, which is due to be completed in late 2000 and will provide 11,700 sq m of office space. Construction of the scheme commenced in 1973. and is likely to absorb much of the midsector demand. With the current depressed economic climate and falling rents, few immediate starts are expected.

Current demand at the top end of the market comes primarily from the diplomatic and aid community and some international companies, who seek high standards of accommodation but remain relatively insensitive to price and are less constrained by the relative weakness of the local economy. However, with the recent completions of Centre Court and Rwenzori Courts, supply and demand in the prime market appear to have reached a state of equilibrium. Demand as a whole is being largely driven by tenants trading up in both area and quality as more space enters the market.

Most banks’ reluctance to lend for a term of more than five years means that long-term finance is not readily available. Finance for commercial property therefore tends to be as equity or in the form of overseas loans.

While sale transactions of prime offices are infrequent, an increasing number of secondary offices are being put on the market as poor management and falling rents affect profitability. Yields for prime offices are currently around 11-12.5%, while more moderate properties would be expected to achieve 12-15%.

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The valuation prices and valuation works

Office rents in Kampala peaked at US$18 per sq m per month in 1995, when economic growth was at its highest, but have since fallen with the slow-down in the economy. Prime rents are currently US$16.50-18.00 per sq m per month, with moderate space in the CBD letting at US$10-14 per sq m per month, exclusive of service charge. Service charges range from US$1.50 per sq m per month for moderate accommodation to US$4.00 per sq m per month for centrally airconditioned accommodation.

but reconciled service charges are rare and the building overheads are usually subsidised from rental income. Rents for older, unmodernised offices tend to be inclusive of service charges. Serviced offices at the Sheraton Hotel are let at between US$40-60 per sq m per month, depending on the level of services provided.

The prime retail pitch is located along Kampala Road with secondary retail provision lying in the area to the south and west of Kampala Road. The Sheraton and the Grand Imperial Hotels in the city centre incorporate small shopping malls, with units sizes of 9-30 sq m, but cater primarily for resident guests. The shopping arcades within Uganda House

Uganda Commercial Bank and Diamond Trust Building along Kampala Road, together with the newly constructed Colline Mall, are the most prominent arcades in the city centre comprehensive property valuation providing units of between 20-100 sq m. A number of retail centres are emerging in the residential suburbs of the city, aiming to serve the surrounding population, the most significant of which are at the Kampala Road/Bombo Road junction to the north-west of the city centre and in Kisamenti and Muyenga/Tank Hill, to the north-east and the southeast of the city respectively.

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