Kenya's Real Estate Surges as Dollar Millionaires Drive Nairobi Luxury Market

Kenya's residential property market is experiencing unprecedented growth, driven by increasing demand from local buyers, expatriates, and international investors. 

This surge is expected to be a central topic at the 2025 East Africa Property Investment (EAPI) Summit, scheduled for May 7-8 in Nairobi. The summit will gather over 450 global investors, developers, and industry professionals to explore the evolving real estate landscape in the region. The 12th annual EAPI Summit, hosted at the Pullman Hotel in Upper Hill, comes at a pivotal time for Kenya's property sector, which is seeing significant investment across both luxury and affordable housing segments. The event will serve as a platform for stakeholders to discuss opportunities, address challenges, and chart the future of residential development in East Africa.

Kenya's luxury residential market is booming, fueled by a growing population of high-net-worth individuals (HNWIs) and increasing interest from expatriates. According to the 2024 Africa Wealth Report by Henley & Partners in collaboration with New World Wealth, Kenya's population of dollar millionaires is projected to reach 16,900 by 2026. This wealth accumulation, combined with Nairobi's rising prominence as a global city, has led to unprecedented growth in the high-end residential market. Nairobi now ranks among the world’s top cities for luxury real estate price appreciation, occasionally surpassing global hubs like London and Paris.

Farhana Hassanali-Hashmani, CEO of Hass Consult, a key player in Kenya’s luxury housing market, notes the evolving profile of buyers in this segment. "Today’s luxury housing market is attracting a more globally sophisticated audience," she explains. These buyers, often younger and aspirational, seek compact yet high-quality homes that prioritise lifestyle and convenience over sheer square footage. There is also a heightened emphasis on sustainability, with buyers increasingly preferring eco-friendly and energy-efficient developments.

The affordable housing segment is also gaining traction as developers and financial institutions aim to address Kenya's substantial housing deficit. This sector serves the middle-income market, focusing on proximity to business hubs, transport accessibility, and value-for-money offerings. Rental demand remains a significant driver within this category, bolstered by institutional and retail investment in mixed-use developments that integrate residential, retail, and leisure facilities.

The upcoming EAPI Summit will also highlight potential investment destinations beyond Kenya, including Tanzania, Zanzibar, Uganda, Rwanda, and Ethiopia—countries that are demonstrating economic recovery, political stability, and improved interest rate environments. Despite the market’s growth potential, developers face several hurdles. High interest rates and stringent lending requirements limit access to long-term financing, while land tenure disputes often delay projects and inflate costs. Additionally, supply frequently lags behind demand, particularly in the luxury segment, creating competitive pricing pressures.

Financial institutions like Stanbic Bank, operating as Standard Bank in many African countries, are playing a crucial role in bridging financing gaps and stimulating growth in the residential market. Stanbic Bank is a gold sponsor of the summit and a prominent supporter of Kenya's affordable housing market. Niyi Adeleye, Head of Real Estate Finance for Africa Regions at Standard Bank Group, underscores the bank's commitment to fostering sustainable development in the sector. 

"Our activities focus on projects with significant social and environmental impacts," he explains. 

This includes supporting green-rated properties and providing green loans to back eco-friendly developments. Stanbic Bank offers a range of solutions, including mortgage financing for property purchases, construction loans, and funding for affordable housing initiatives. This support is particularly critical in the affordable housing segment, where demand remains strong, and the potential for social impact is significant.

Stanbic Bank's backing of the EAPI Summit aims to connect investors with experts and resources to navigate the complexities of Kenya's property market. Hass Consult, another key sponsor of the summit, is bullish about Kenya's luxury housing market. Hassanali-Hashmani believes the sector is ripe for innovation, with developers now investing in high-quality finishes, curated experiences, and thoughtfully designed communal spaces.

 "Luxury today is about the entire user experience," she asserts. This includes integrated wellness facilities, seamless property management, and amenities that align with global urban living trends.

The EAPI Summit will provide a platform for stakeholders to discuss these trends and devise strategies to overcome challenges. From navigating financing hurdles to addressing land tenure issues, the event will feature insights from leading experts, including representatives from Hass Consult and Stanbic Bank.