Kenya’s property market is one of the most active in the East African region, equally rated among the top in the African continent.
This is best explained by the fast rising demand for good urban housing, thanks to the growing middle class that is now pushing up demand for houses and apartments especially in places surrounding the capital Nairobi.
Nairobi’s middle-class friendly prime locations such as Lavington, Kileleshwa and Kilimani are very popular among professionals with good jobs that can afford them classy accommodation near the CBD. This makes it easy to commute to and from work without spending much time on the roads.
Investors keen to invest in Kenyan property, especially in the rental driven market; can look forward to good returns from housing units like apartments in Nairobi’s leafy areas like Loresho, Kilimani, Lavington, and Kileleshwa among others. A standard fully furnished one bedroom unit in a location like Kilimani, for instance, can fetch up to KSH 100,000 (USD 1160) per month. If you buy such a unit for say, KSH 10M-12M (USD115590- 138708), you are guaranteed of returning at least 10% of your investment by the end of the first year and be sure of recovering the full investment within 10 years or even less.
Investors targeting Kenya’s higher end property market can look at areas such as Karen and Muthaiga which are popular among high net worth individuals. Luxury homes in these areas can cost up to KSH 100M (USD 1155900.00). Most of the individuals buying luxury homes in Karen or Muthaiga are looking for a serene environment that is complete with reliable security, enough space, stable electricity, clean & constant water etc.
The best time to buy properties for investment in these areas is when developers are beginning to construct. You can expect good rates plus you can always decide to sell the property at a profit as the project nears completion.
Some of the most promising projects to watch out in the first half of 2014 in Kenya’s property market include Loresho Ridge in Loresho, a serene urban gated community, and the Cullinan Furnished Apartments in Kilimani, all prime areas of Nairobi.