Major opportunities for Kenyan real estate and infrastructure lie in confronting the key challenges the sector is facing throughout East Africa and beyond: issues of sustainability, affordable housing, access to finance, and regulatory compliance, says Renice Midar.
“There has been a significant focus on discussions around the issue of sustainability and environmental concerns, as the real estate and infrastructure sector is a significant contributor to the world’s greenhouse gas emissions,” explained Midar, Head of Real Estate, Banking & Finance at TripleOKLaw Advocates. “Similar to global trends, there is an increasing emphasis on environmentally sustainable building practices. This is a fundamental shift, requiring developers to rethink the way they design, build and inhabit spaces.”
The real estate landscape is no longer solely about brick and mortar, added Midar, but also about building a greener, smarter and more resilient future However, going green comes at a cost, and while there’s an increased appetite for environmentally compliant and green building spaces, the challenge has been to create a balance between the environment and rising project costs and timelines.
“As we know, infrastructure development can have adverse environmental and social impacts such as deforestation, habitat destruction and displacement of communities,” she said. “So, balancing the need for infrastructure with environmental and social sustainability is a challenge that requires careful planning mitigation measures and stakeholder engagement.”
The focus on sustainable development also opens many great opportunities, noted Midar, including renewable energy projects, investing in climate resilient infrastructure and green transportation networks, all of which can attract responsible investors. Property developers can also take advantage of related shifts in consumer preferences by investing and focusing on energy-efficient designs, waste reduction and sustainable buildings.
Midar and her team have helped clients navigate various challenges in several billion-shilling (multi-million dollar) projects, including a Turkish developer building the first smart home luxury apartment project in sub-Saharan Africa. “Smart Homes are increasingly seen as a key component of sustainable living, and an important tool in addressing ESG challenges,” she said.
“We help our clients from the initial stages of project conception and acquisition to structuring the entire project and preparing contract papers for various parties involved, including doing leasing and sale agreements, and ensuring they comply with regulations around sectional properties and conversion of title,” Midar shared. “Essentially, we deliver legal support throughout the project.”
Just as sustainability challenges birth great opportunities, stakeholders can also find success confronting other key issues facing East Africa, Midar says. She believes rapid urbanisation and population growth offer opportunities for investment in affordable housing, improved commercial spaces and urban infrastructure, and meeting this demand can drive economic growth. Governments can attract investment by streamlining regulations or implementing one-stop shops for permits and approvals. She also pointed out that limited access to affordable financing increases the impact of DFIs and creates opportunities for the development of innovative financing mechanisms and investment facilities to attract long-term investors.
With a regional network of “best friend” firms, and as part of the Meritas global alliance, TripleOKLaw offers seamless cross-border expertise which is invaluable for clients. For Midar and her colleagues, it’s about “seeing beyond” which is the firm’s tagline that encapsulates their collective vision to exceed expectations, innovate and embrace a forward-thinking approach to work while helping developers and investors embrace an exciting future.
To join Africa Legal's mailing list please click here