Buying off-plan? Do your homework on developers, experts warn
Real Estate
By
Paul Kariuki
| Apr 09, 2026
A growing number of Kenyan especially those in the diaspora are turning to off-plan property investments, but experts warn the model carries significant risks if due diligence is overlooked.
A recent case circulating on social media highlights the dangers. A group of Kenyan women based in the United States invested in off-plan retirement homes through a developer they trusted, relying on virtual site tours to track progress.
However, upon visiting the site, they discovered the delivered units were substandard and located far from what had been advertised. The developer had reportedly used a single model unit to mislead investors during virtual updates.
Wanyaga Kihara, a manager at Beta Life Commercial Agencies, warns that such arrangements can leave buyers with units that fall short of expectations.
“You may see a redesign of the original plan as the developer could be maximising on the available resources, and what you get is not what you ordered. It could be below your specifications, and market valuation could be below what you paid,” he says.
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Kihara adds that in many off-plan projects, buyers have limited oversight during construction, increasing the risk of substandard work.
“In almost all off-plan projects, you aren’t in control. You can’t visit the site to see how your project is progressing. The developer will hand you keys to your unit once it’s complete. How would you know if it meets structural soundness before you occupy it?”
He cautions that flashy marketing as often seen on social media does not guarantee quality delivery, noting that some promotions may be influencer-driven rather than performance-based.
Kihara also points to global economic uncertainties, including tensions in the Middle East, which could impact property values and leave investors with assets that do not match their initial investment.
“This would call for an investor planning for contingencies. Consider changes in markets or potential delays. This would insulate you from spending more for an underpriced unit,” he says.
Real estate developer Joseph Macharia echoes the concerns, urging buyers to thoroughly vet developers before committing funds.
“If that developer goes bankrupt, there goes your investment,” he says.
Macharia notes that some developers overpromise and take on excessive debt, using client-funded projects as collateral—exposing buyers to losses if projects collapse.
He also highlights regulatory risks, where changes in land use or building codes can disrupt developments. For instance, projects near riparian zones such as the Nairobi River could be affected by stricter environmental regulations.
“If your investment was coming up well in such a place and regulations are gazetted, the unit could completely be abandoned… and the end product could be different from what you asked for,” he says.
Despite the risks, experts maintain that off-plan buying is not inherently flawed—but requires careful scrutiny.
Buyers are advised to verify a developer’s track record, understand contract terms, payment schedules, and penalties, and factor in potential delays and market shifts before investing.