Economic uncertainty and the cost of living have been a constant vocabulary globally, and while inflation continues to erode the purchasing power of money, discerning investors are turning to reliable ways to protect and grow their wealth.
At Optiven, we understand that real estate stands out as the ultimate hedge against inflation. Unlike cash, bonds and even some stocks which lose value as prices increases, real estate tends to appreciate, providing both capital growth and passive income.
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According to the International Monetary Fund (IMF), inflation is the persistent increase in prices of goods and services. When the cost of goods and services increases, the purchasing power of your money decreases.
This means that ksh. 10,000 in your savings account today, will buy less tomorrow, making it crucial for investors to seek assets that not only maintain their value but also appreciate over time.
Why Optiven is an Effective Inflation Hedge
Property Value rise with Inflation
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As the cost of goods and services increases, so do property prices. Land is a tangible resource and its limited supply drives consistent demand. This supply and demand dynamic keeps pace or exceeds inflation regardless of economic cycles.
Take Ushindi Gardens by Optiven for example. The project is 90% sold out and was launched in January 2023 going for ksh. 850,000. Now, 2 and a half years later, it is going for ksh. 1,095,000 signifying a 28% increase. https://www.optiven.co.ke/properties/ushindi-gardens-nakuru/
The Optiven business model that adds value such as graded roads, solar streetlights, water towers and perimeter fences further increase the intrinsic value of the property further driving up prices.
Multiple Income Stream
Once acquired, the value of land can grow significantly without value additions or daily interventions. According to McKinsey and Co, land has consistently outperformed other assets during inflationary periods. This includes agricultural land outperforming gold. The Great Oasis Gardens by Optiven, facing Ol Pejeta Conservancy, offers land that can generate income. This can be through agricultural activities, rental income, and leasing.
https://www.optiven.co.ke/properties/the-great-oasis-gardens-nanyuki/
Consistent Demand
Population growth and urbanization in Kenya ensue a deliberate demand for land. As inflation drives up the cost of construction materials, labour and development, the value of your undeveloped land naturally increases.
This is because the cost to develop similar land becomes more expensive. It makes your existing property more valuable by comparison. Optiven, with properties in Kimuka – Ngong, Nanyuki, Vipingo, and Kitale, shows the consistent demand and appreciation over the years.
With inflation on a steady increase over the past few months, every month of delay means your savings lose more purchasing power. Transform your inflation challenge with Optiven today.
