CURRENT REAL ESTATE TRENDS IN KENYA
Over the past two decades, the Kenyan real estate market has undergone significant expansion, contributing substantially to the country’s GDP. From 2000 to 2016, its share in the GDP increased from 10.5% to 13.8%, propelled by various factors. Infrastructure development, including upgraded roads and airports, has played a pivotal role, alongside a stable GDP growth averaging 5.4% over the last five years. Demographic shifts, such as rapid urbanization at 4.4% annually, and a population growth rate of 2.6% annually, further contribute to this growth. Additionally, high total returns averaging at 25.0% in comparison to traditional asset classes at 12.4% have attracted investors.
This growth has given rise to unique trends in different real estate sectors. In the commercial sector, the Kenyan office space has expanded significantly, reflecting the country’s economic progress and serving as a key gateway to the East African market. Trends include the rise of serviced offices, semi-fitted offices, and the incorporation of green building technology for sustainability. The retail sector has seen a surge in mall developments, making Kenya the second-largest mall space provider in Africa. The industrial sector is evolving towards modern parks, emphasizing a live, work, and play concept, while the residential sector addresses the increasing demand for affordable housing, master-planned communities, and alternative building technologies.
The hospitality sector, closely tied to tourism, has experienced growth, with innovative concepts like dual-branding gaining traction. The value of land has risen due to infrastructural development, leading to increased interest in land speculation and banking. Developers are also utilizing agribusiness as a value-added strategy for attracting buyers. Overall, these trends showcase the dynamic and multifaceted nature of Kenya’s real estate market.
Contact Sunland Real Estates today to meet all your real estate needs as we look forward to an exciting year in the real estate industry in Kenya.
