Nairobi is the most cosmopolitan city in Kenya and has the largest population in the country of above 4 million. It has attracted private investors from various parts of the world. This has been due to the high demand of housing and the development of infrastructure.

As a potential investor, you can choose the level of Real Estate you want to invest in, whether you want to service high-end or low-income markets.

Nairobi, being a hub of business and is headquarters to multinational companies and a myriad of international organizations, has been lucrative in real estate investment for both commercial and residential property.

 

HIGH-END ESTATES
These estates have palatial homes, land compounds, top-level security, well-paved roads, and strict zoning regulations. The average rent in these estates is Kshs 200,000  to KShs 300,000 per month with an average selling price of 60 Million to over 100 Million.

Gigiri and Nyari are examples of such estates with Gigiri being the most expensive estate in Nairobi.

High-end estates are least likely to be affected when the economy is performing poorly.

 

UPPER MIDDLE – CLASS ESTATES
The difference between these estates and the high end is minimal. Their zoning regulations are a little more relaxed, they have social amenities such as shopping malls and unlike the high end estates they are accessible through private and public transport.

Rent ranges between Kshs 50,000 to Ksh 150,000 per month and the average selling price is between Kshs 12M to Kshs 25 Million depending on the location and number of bedrooms.

Estates such as Kilimani, Ridgeways, and Westlands fall in this category. These estates are also likely to be very affected when the economy is not doing well. Though, at the moment, Kilimani has had an over supply of houses compared to demand leading to a slight reduction in prices.