THE IMPACT OF SECOND/HOLIDAY HOMES ON LAND VALUES IN RURAL KENYA

Catherine Kariuki and Nicky Nzioki

AfRES from African Real Estate Society (AfRES)

Abstract: Analysis of second/holiday homes in other countries link them to a whole range of negative impacts that include socio-economic consequences and pushing house prices beyond the reach of local buyers and renters. In Kenya they have been linked to conversions of highly potential agricultural land to residential or commercial land use, contributing to food insecurity. The rising values have also contributed to sale of ancestral homes leading to increased poverty for the rural folk.These second/holiday homes are becoming a common place in rural Kenya. The properties are either built in the rural areas where one originally came from or in gated community developments. Those in the gated community developments are often sold or marketed as part of the tourist industry and are supposed to give the owner abnormal profits and as well as make a contribution to the local economies. These properties are supposed to offer the perfect holiday venue, which makes the properties highly rentable. Studies have shown that these homesinitially made a useful contribution, but is that still the case? To what extent do these homes have an impact on land values and a positive effect on the rural economy?The research will look at second/holiday homes in ancestral areas and rural gated developments in Naivasha and Laikipia. The study hopes to determine if these properties have contributed to the rise in land values in areas where they are, leading to rural areas being converted from agricultural use to commercial uses and therefore leading to food insecurity.The study recommends that Governments need address the problems posed by empty and rarely used properties. The role of land use planning must be more widely discussed to understand its scope and limits for these types of homes. This is especially in the areas of land use class, zoning categorisation and changes in land use.

Keywords: agricultural use; food insecurity; Land Values; Policy; residential use; rural land; Second homes/holiday (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2017-09-01
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