Buxton point in Mombasa
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Kenya's real estate market is proving resilient, attracting significant foreign investment even as global property sectors face pressures from inflation and rising interest rates.
A recent survey by HassConsult indicates that property prices in Nairobi and its environs surged by 5.2% in 2024, doubling the 2.5% growth rate of the previous year. This growth is largely fueled by standalone houses, which saw a 7.5% increase in value, followed by apartments, which appreciated by 1.6%.
The upswing is attributed to a confluence of factors, including infrastructural improvements, increased mortgage uptake, and the expansion of Kenya's middle class, all driving increased demand for housing.
From an international standpoint, Nairobi's real estate is proving particularly attractive. Premium apartments in high-end neighbourhoods like Kilimani are priced between Sh130,000 and Sh140,000 per square meter. A luxury 200-square-meter apartment in Nairobi costs approximately Sh26–28 million. Comparable properties in global capitals like London or New York often exceed Sh100 million. Furthermore, Nairobi’s rental yields, averaging 7–9%, significantly outperform those in cities like London and New York, which typically range from 3% to 5%.
The relatively low cost of living in Nairobi, compared to cities like Johannesburg or Dubai, further enhances the country’s appeal, incentivizing both foreign investors and Kenyans living abroad to explore property ownership and rental opportunities. To capitalize on this growing interest, Kenyan real estate developers are leveraging digital technologies and innovative strategies. Virtual property tours, interactive 3D models, and high-quality videos have become essential tools for engaging international buyers unable to visit properties in person.
Platforms like social media, specialized property websites, and webinars provide real-time consultations, ensuring seamless communication with potential investors. Flexible payment plans have also become instrumental in driving investment among diaspora buyers. Developers increasingly accommodate investors by offering instalment options, recognizing the financial constraints faced by many living abroad. This adaptability has significantly enhanced the accessibility of Kenyan real estate to a global audience.
Luxury estates and gated communities equipped with modern amenities and smart home technology are also drawing the attention of high-net-worth individuals. Locations like Nairobi’s Karen, Kiambu’s Runda, and coastal areas in Kilifi are emerging as focal points for vacation homes, rental properties, and retirement residences. Nanyuki, known for its scenic landscapes, is attracting investors seeking exclusive properties. Kenyan realtors and developers have intensified their outreach through property expos and investment forums in diaspora hubs like the United States, United Kingdom, and the Middle East.
These events showcase Kenyan properties, foster direct engagement between developers and potential buyers, and provide clarity on legal and financial matters. The real estate market is expected to continue its expansion Fueled by Kenya’s robust economic growth, infrastructure upgrades, and rising housing demand.