Real estate in Kenya
The real estate sector in Kenya has seen a boom that begun somewhere in the mid to late 2000's because the property market is responding to demand that has been created by the expanding middle class with disposable income and in which people have become able to service their mortgages.
In Nairobi, the capital and largest city of Kenya, there is one of the largest expatriate communities in the continent due to the significant number of multinationals who have chosen Nairobi as either their African hub or East and Central African hub.
- 1 Kenyan cities
- 2 Markets
- 3 Prime Global Cities Index
- 4 Greater Nairobi and Nairobi Metro
- 5 Mombasa
- 6 References
- 7 External links
Nairobi's profile as a regional business hub has been growing as seen by the number multinationals, from diverse industries, which have chosen to open shop in the Kenyan capital or decided to choose the city as their base for Africa-wide operations.
In 2012, the property markets in Nairobi and Mombasa, the largest and second-largest cities in Kenya respectively, earned two of first and second positions of 71 cities surveyed globally to outstrip all other Prime International Residential Index locations. They were the only cities in the "southern hemisphere" to have reported double digit property price increases, despite a defying a surge in lending rates and a weak global economy. The table shows property price growth in the top cities in the survey.
|City||Country||Percentage increase between 2011 and 2012 (%)|
The report noted that inflows from Kenyans in the diaspora are particularly significant in driving the prices and that buying a square metre of land in Nairobi and Mombasa is still cheaper than other cities such as Monaco.
The office market in Kenya has moved from a position of oversupply and the market is finally stabilising, as Nairobi reinforces its position as the regional commercial hub of Sub-Saharan Africa.
Kenya continues to experience some of the most decentralised growth of the retail market as marketers move outside Nairobi and go to other urban centres in Kenya such as Mombasa, Kisumu, Eldoret and Nakuru.
Most industrial companies in Kenya tend to avoid renting or leasing space. However, over the recent years there has been significant development especially along Mombasa Rd. Rent and take up is low so the sector might need a couple more years to mature.
The residential market has actually been one of the key drivers of the property market. There has been a significant number of development projects coming up both within the Greater Nairobi Area and other urban areas such as Mombasa, Naivasha and Kisumu.
Prime Global Cities Index
|No.||City||Country||World region||12-month (Mar 2012–13) % change||6-month (Sep 2012 – Mar 13) % change||3-month (Dec 2012 – Mar 13) % change||Data if not Q1|
|7||Los Angeles||USA||North America||12.5||8.6||9.4||Q4|
|11||San Francisco||USA||North America||8.4||2.3||−0.1||Q4|
|14||Tel Aviv||Israel||Middle East||3.7||−4.1||−5.4||Q4|
|15||Kuala Lumpur||Malaysia||Asia Pacific||2.8||3.2||2.3|
|16||Cape Town||South Africa||Africa||1.7||1.7||1.2|
Performance of luxury homes by world region
|Region||Performance of luxury homes|
Greater Nairobi and Nairobi Metro
|Cities/towns/municipalities in the counties|
|Core Nairobi||Nairobi County||694.9||3,138,369||Nairobi|
|Northern Metro||Kiambu County||2,449.2||1,623,282||Kiambu, Thika, Limuru, Ruiru, Karuri, Kikuyu|
|Southern Metro||Kajiado County||21,292.7||687,312||Kajiado, Olkejuado, Bissil, Ngong, Kitengela, Kiserian, Ongata Rongai|
|Eastern Metro||Machakos County||5,952.9||1,098,584||Kangundo-Tala, Machakos, Athi River|
Population of Core Nairobi between 1906 and 2009
Upper Hill has become an alternative for major companies seeking land cheaper than that which is in the Central Business District of Nairobi. It is one of the two main bases multinational firms consider when setting up in Kenya or Africa. Some of the firms include but are not limited to: Cisco Systems, Citibank, Coca Cola, Huawei and IMF.
Average annual office rents for Grade A offices in Nairobi
Westlands along with Upper Hill has become one of the two main bases for multinational firms that want to set up in Kenya or Africa. Some of the firms include but are not limited to: General Electric, Google Africa headquarters, Intel Corporation, LG and Standard Chartered Plc.
Gigiri is home to Kenya's large expatriate community. It is one of the largest expat communities in Africa. It houses the United Nations Environmental Programme. Nairobi is the only African city to host a major UN body. It also has the Village Market, which targets the expat community in Nairobi and hosts the International Civil Aviation Organization Base for Eastern and Southern Africa. Gigiri is considered one of Kenya's most posh suburbs along with Runda and Muthaiga which are really close to the place.
Runda, Muthaiga, Lavington, Karen
These areas are Kenya's most expensive neighbourhoods; however, it is very likely that the neighbourhoods like Runda will lose its tag due to the recent demolitions and others are seeing more and more townhouses rather than mansions and villas.
Machakos (East Metro)
Towns in Machakos County on the outskirts of Nairobi from the 2000s been inhabited by people who work in Nairobi. Athi River is one town that has seen people move there. This shows that people have started to prefer living outside the core of the city. Under the Nairobi 2030 Masterplan, Machakos County is to become a dormitory town for Core Nairobi.
Konza Techno City
Konza Technology City dubbed "Africa’s Silicon Valley" will be the single largest property development ever done in Kenya. It is going to host the technology city as part of many programmes that aim to steer Kenya into middle income status. It will cost a whooping US$ 14.5 billion after commencing in January 2013 and is to be completed by 2030.
Kiambu (North Metro)
With the recent completion of the expansion of a road connecting Core Nairobi to Kiambu County, there has been a lot of property development happening with the most significant being:
Kajiado (South Metro)
Kajiado County is currently home to Kenya's richest people. There are many residential neighbourhoods that host people who work in Nairobi examples are Ngong, Kitengela, Kiserian and Ongata Rongai. Kitengela is close to Athi River which has also started rising as a popular residential area.
Nyali houses some of the most expensive homes in Kenya.
English Point Marina
English Point Marina will be East and Central Africa's first floating pontoon marina. It will offer apartment living in the comfort, luxury and security of a hotel and will be managed by Pinewood Village Beach Resort. Units sold cost between KES. 36 and 150 million (US$ 410,000 – US$ 1.8 million). Despite the high prices, the units are almost sold out.[when?]
The total cost of the project is about KES. 4.8 billion (US$ 60 million).
- Source: Knight Frank Residential Research, Miller Samuel/Douglas Elliman, Ken Corporation Hong Kong & Kuala Lumpur