In this week’s Investing Like an Executive series, we speak to Mark Dunford, the Chief Executive Officer of Knight Frank Kenya to understand more about Kenya’s commercial and residential real estate industry.
Starting the interview exploring Mr. Dunford’s career, he began his journey working as a hotel broker and later moved toward real estate where he has worked across Africa and in the United Arab Emirates before beginning his tenure with Knight Frank Kenya about a year and a half ago.
Moving on from Mr. Dunford’s career, the conversation with him covered an array of topics from the state of Kenya’s real estate market, his thoughts on the future of commercial buildings in Nairobi and giving The Kenyan Wall Street a sneak peek behind the GTC Development in Westlands, of which Knight Frank Kenya is the listing agent for its commercial space.
Do you see co-working and work-from-home culture continuing forward and what are its implications on the Kenyan economy?
“We have been witnessing a natural evolution in the market towards more flexible solutions… Co-working spaces are great especially for international companies still gauging where and how much to invest in the local market. It is big money for many companies to sign a 5–6-year lease and then invest in outfitting with office with branded design, furniture, etc. These flexible solutions are spectacular for companies and young startups coming into the market as they help remove barriers to entry created by a multi-year long lease,” stated Mr. Dunford.
Mark Dunford On How is Airbnb disrupting the Kenyan market?
Mr. Dunford replied, “Airbnb is a fantastic short-term, city-grade product… Nairobi is becoming more and more of a destination city with increasing numbers of international, regional & domestic travelers. For a real estate investor, you must decide what works best for you. While Airbnb may earn you more each night, they are short-term clients, and you must put in work to make sure the unit has a continual flow of stays. A year-long lease is much easier and requires much less attention from the investor, but your potential per night revenue is less. So, there is a tradeoff between occupancy and pricing.”
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Knight Frank is leading numerous high-profile projects here in Kenya, what trends do you see as the most exciting for the sector?
“I am quite excited about some of the commercial projects we are working on. Historically, the country has built office buildings on a tight budget – as cheaply as possible… Now we are seeing many global companies demanding through emission statements and ESG, that their buildings must reach a certain standard. We are seeing developers embrace this and build new facilities that focus more on green certification, efficiency standards and a mind for how people flow through and use the building.”
Concluding the interview, Mr. Dunford told the KWS that if he was in the shoes of a young person starting their career today, he would focus on learning more languages, strengthening his financial acumen, and developing the emotional intelligence to better connect with people.
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