Kenya’s real estate sector is attracting increasing attention from foreign investors and the Kenyan diaspora, positioning the country as a prime investment destination. As global markets face rising inflation, interest rates, and economic instability, investors seek stable, affordable alternatives with strong returns. With its unique opportunities, Kenya is becoming a standout option in the global property landscape.
According to a survey by HassConsult, property prices in Nairobi and surrounding areas grew by 5.2% in 2024, a notable rise from the previous year’s 2.5%. This surge was primarily driven by heightened demand for standalone houses, which saw a 7.5% increase, while apartment prices grew by a more modest 1.6%. Experts attribute this growth to infrastructure improvements, the rising middle class, and increased mortgage access.
Nairobi offers competitive property prices and high rental yields compared to other global cities. For instance, in upscale areas like Kilimani, high-end apartments can be bought for between Sh130,000 and Sh140,000 per square meter. This means a 200-square-metre apartment would cost between Sh26 million and Sh28 million, quite lower than prime properties in cities like London and New York, where similar spaces can exceed Sh100 million. Nairobi’s rental yields are also among the highest globally, averaging between 7% and 9%, far outperforming the typical 3% to 5% yields in cities like London and New York.
Developers and realtors increasingly use digital tools such as virtual property tours, online investment forums, and high-quality marketing materials to attract the diaspora and international buyers. Platforms like social media, dedicated property websites, and online webinars are now critical for reaching potential investors abroad. Many developers also offer flexible payment plans and rental guarantees, investing in Kenyan real estate more accessible to foreign buyers.
The demand for luxury housing and gated communities is growing, particularly among high-net-worth individuals from the diaspora. Prime locations such as Karen in Nairobi, Runda in Kiambu, the beachfront areas in Kilifi, and the scenic places in Nanyuki have seen a rise in investments for vacation homes, rental properties, and retirement residences.
In response to this trend, realtors and developers are expanding their efforts to engage with international buyers. Property expos and investment forums in cities worldwide, including the US, UK, and the Middle East, have become essential tools for showcasing Kenya’s real estate opportunities. These events allow potential investors to interact directly with developers, ask important legal and financial questions, and build trust in the investment process. Some developers also offer site visits for diaspora clients, allowing them to see properties firsthand in Kenya.
With its growing economy, improving infrastructure, and rising demand for housing, Kenya’s real estate market is positioned for sustained growth, making it an attractive option for global investors looking for promising returns.
