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Real Estate sector struggling due to effects of COVID 19

by biasharadigest

Urithi Housing Cooperative Society has dispelled fears that the multibillion organization is financially constrained, but admitted that business has significantly declined due to the Covid-19 pandemic.

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The Society Chairman Samuel Maina however assured that the real estate firm is still on course to deliver pending projects to its members this year amid the disruption caused by the virus.

Maina says Urithi is purely concentrating on delivering pending projects and will not initiate new projects as the market prospects are not promising.

“We were doing so many projects across the Country, but for the last few months we have embarked on delivery pending projects which we intend to hand over then focus on our business model without restructuring it,” Maina said.

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Speaking in Mombasa during a ceremony to hand over about 100 tittle deeds to property buyers, Maina assured the society members that all pending projects will be delivered within the next six months without delays.

“In the coming few months you will see us handing over title deeds to members across the Country as we promised. We want to finish the projects so that they can be off our back,” Maina added.

Maina however revealed that Urithi is owed more than 2.5 billion shillings in unpaid contributions by members adding that while the situation is fully understandable, it would be prudent for members to pay their dues to enable the society complete the projects and hand them over.

The real estate sector has significantly suffered an economic down turn this year as a result of the Covid-19 pandemic but Maina said they have no plans to audit properties belonging to defaulters.

“There are financial challenges and as Urithi we will continue delivering projects to investors because that is our duty. We will give our members time to clear their dues instead of auditing their properties,” He said.

The delivery of projects comes as members raise concerns over delays in acquiring the important documents to prove ownership of their land.

“There are challenges in acquiring the tittle deeds as a result of cessation of Movement, and access to National offices. We know many investors are suffering financial challenges and that is why there is slow growth,” he added.

Beneficiaries of the tittle deeds applauded the company for delivering the project on time at a time when the cost of acquiring in the Coastal region continues to increase as a result of overpopulation and rise in demand.

“It has been my dream to own land for investment. This is a big boost for me as a woman,” said Juliet Karagu, after she received five tittle deeds for different parcels of land worth an estimated Ksh 2 Million.

Maina expressed optimism that the sector will emerge from the pandemic stronger saying the Government allocation of a whooping Ksh 15.5 billion into the ambitious Affordable Housing Programme is an indicator that there is goodwill from the stakeholders to ensure it’s back on its feet.

“This can stimulate the property economy that is stagnant owing to economic shocks orchestrated by the Covid-19. This is a very significant move if implemented well,” said Benedict Mutuku, the executive director of Goldwyn Consult Company.

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