New Build Properties in Kenya

Main risks include construction delays, developer financial difficulties, changes to original plans, and quality issues. Mitigate risks by researching the developer's track record, ensuring proper legal documentation, making payments through escrow accounts, and having regular site inspections during construction.

Title deeds for new builds are typically issued 3-12 months after construction completion and full payment. The timeline depends on land subdivision approval, mortgage discharge (if applicable), and land registry processing. Ensure your sale agreement specifies the title transfer timeline and any penalties for delays.

Most developers allow customization during early construction stages, typically for flooring, paint colors, kitchen cabinets, and bathroom fixtures. Major structural changes are rarely permitted. Customization options and any additional costs should be discussed and documented in your purchase agreement.

Common payment structures include: 10-20% deposit upon signing, 30-40% during foundation/structural stage, 30-40% during finishing stage, and 10-20% upon completion. Some developers offer up to 36-month payment plans. Always ensure payment milestones are tied to verifiable construction progress.

Reputable developers provide warranties covering structural defects (typically 5-10 years) and workmanship issues (1-2 years). The warranty should cover foundation, roof, waterproofing, and major systems. Ensure warranty terms are clearly specified in your purchase agreement and understand the claims process.

Verify credibility by: checking completed projects and speaking with previous buyers, confirming business registration and tax compliance, reviewing land title and approvals, checking for NCA (National Construction Authority) registration, researching online reviews, and visiting their active construction sites. A credible lawyer can help with due diligence.

Your purchase agreement should specify the expected completion date and penalties for delays. Some agreements include compensation clauses or allow buyers to exit with refunds after significant delays. Document all communications with the developer and seek legal advice if delays become excessive (typically beyond 6 months).

Yes, most Kenyan banks offer mortgages for off-plan purchases, often requiring 20-30% deposit. The bank typically releases funds in stages tied to construction milestones. Pre-qualification is recommended before committing to a purchase. Some developers have partnerships with banks offering preferential rates to their buyers.