Why Agricultural Real Estate is Highly Profitable in Kenya

Many investors think that agricultural and undeveloped land is a long term investment that will not pay off for years. Unfortunately, that is not true. Agriculture is the mainstay of the economy and also a means of livelihood for majority of Kenyan people.

Pendo Setim Pendo Setim
Dec 9, 2020 - 11:58
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Why Agricultural Real Estate is Highly Profitable in Kenya
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Farmland investments are excellent assets if you are a real estate investor looking to expand your portfolio. When you invest in farmland, you immediately add inflation that helps you hedge against losses in traditional asset investments. Land maintains an intrinsic value even during a recession.

A number of experts have agreed that farm investment is a safe option for parking one's funds as the return on the investment is usually higher than other investments and besides that, lends safety to the investor's money. Agricultural land and agricultural commodity investments are some of the hottest alternative real estate investments out there.

Agriculture is a global business, and food is a commodity that everyone needs. The world's population is growing and so is the demand for food. This is an added advantage to agricultural producers, as they get to earn more money. Due to technology, agricultural products can be distributed to markets across the world. Every time you step into a grocery store or a farm to make a purchase, you send money to agricultural land investors and farm owners. Agricultural profits are not just limited to edible commodities. Hardwood trees are also a source of profit for farmers, as they can be used to prepare furniture.

The agriculture sector is the driver of Kenya's economy. Crop production and horticulture contribute 76.5% of agriculture followed by livestock production at 4.9% while fishing and forestry contribute 0.5% and 0.7% respectively. Agriculture is the main source of raw materials for many industries in Kenya. 

Investing in agriculture is an advantage since it is less sensitive to market changes. It is a long-term venture and it is a low-risk investment that keeps pace with inflation and increases in value over time. It is a tangible asset that provides benefits to the community. When one invests in farmland through crowdfunding, you get all the benefits of investing in a lasting commodity at a much lower risk.