Why Young Kenyans Are Choosing Apartments Over Land

Young Kenyan investors are increasingly buying apartments instead of land, attracted by rental income opportunities, easier financing and changing urban lifestyles.

For many years, land was regarded as one of the most reliable investments in Kenya. Families often purchased plots on the outskirts of towns as a long-term store of wealth. While land remains a popular asset, many young professionals are now choosing apartments because they can provide both housing and immediate income through rent.

Property analysts say current market conditions have increased the appeal of apartment ownership. According to real estate expert Johnson Denge, Nairobi's residential property market currently favours buyers because a significant increase in apartment supply has expanded choice and improved affordability. At the same time, strong demand from tenants continues to support rental income opportunities for investors.

The growth of short-term accommodation platforms has also strengthened interest in apartments. Many investors are targeting furnished units that can be rented to business travellers, tourists and other short-stay visitors. Apartments are often ready for occupation immediately after purchase, require limited preparation before letting and can be managed by professional property firms.

Social and lifestyle changes are also influencing investment decisions. Online property listings, digital information platforms and peer networks have made apartment investment more visible and easier to access. In addition, urban development and planning policies have supported the construction of new residential projects across Nairobi and surrounding areas.

Apartment prices vary depending on location. Denge says values range from about Sh70,000 per square metre in lower-cost urban and satellite-town markets to around Sh200,000 per square metre in premium areas such as Westlands. Studio apartments are available from roughly Sh1.8 million, while larger units command higher prices depending on size and location. 

Most first-time investors continue to focus on properties priced below Sh10 million, supported by greater access to mortgage financing and facilities offered through the Kenya Mortgage Refinance Company. Demand remains strongest along established growth corridors connected to major transport routes, including Mombasa Road, Ngong Road, Lang'ata and Ngong. Investor interest has also expanded into emerging residential areas such as Ruaka, Kiambu Road, Kabete and several satellite towns around Nairobi.

However, property professionals caution that buyers sometimes overlook important checks before purchasing an apartment. Issues relating to legal ownership, neighbourhood suitability and the condition of shared facilities can affect the value and usability of a property. Infrastructure challenges can also create unexpected costs. In some developments, inadequate services such as sewer connections can lead to higher maintenance and management expenses.

Many investors also underestimate the full cost of ownership. In addition to the purchase price, buyers may be required to pay legal fees, stamp duty, service charges and property management costs. These expenses can represent a significant share of the total investment and affect overall returns.

Legal experts stress that buyers should understand the ownership structure attached to an apartment before completing a purchase. Prudence Mwende, an advocate specialising in property and conveyancing, advises prospective purchasers to obtain a formal offer document and conduct detailed checks on title documents and regulatory approvals. 

She says independent legal advice is essential during this process. A key consideration is whether the apartment is sold under a sectional title or a sub-lease arrangement. 

A sectional title gives direct ownership of an individual unit and records the owner's interest in shared areas such as corridors, parking spaces, lifts, gardens and recreational facilities. It also establishes a legal framework for the management of common property through an owners' corporation.

A sub-lease operates differently because it is based on a wider lease held by a developer or landowner. In such cases, the apartment owner's rights depend on the terms and duration of the main lease. Mwende says sectional titles generally provide stronger ownership protection and greater certainty, particularly when owners wish to use their property as security for borrowing. 

The Sectional Properties Act, 2020 has further strengthened this framework by providing clearer rules on ownership and governance. The legal considerations become more significant in off-plan developments, where buyers commit funds before construction is completed. 

Although these projects may offer lower prices, they can also expose investors to risks such as delays, design changes or failure to complete construction. Mwende advises buyers to assess a developer's track record carefully and review contract terms covering timelines, payment obligations and remedies for delays.

The question of whether apartments are a better investment than land remains open. Each asset serves a different purpose. Land continues to benefit from scarcity, relatively low maintenance costs and a long record of capital appreciation, particularly in fast-growing areas such as Juja, Ruiru, Ngong, Kikuyu and Kisumu.

Apartments, however, offer the potential for regular income and immediate use, making them attractive to investors seeking cash flow as well as ownership.

The growing preference for apartments among younger Kenyans reflects broader changes in investment behaviour driven by urbanisation, improved access to finance and demand for income-generating assets. 

Industry participants note that successful investment depends not only on choosing the right property but also on understanding the legal and financial responsibilities that come with ownership. As apartment supply continues to increase, some segments of the market may also experience price adjustments where new developments exceed demand.