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News Release

Johannesburg

Sub-Saharan Africa releases Nairobi 2016 City Report

An overview of the Nairobi real estate market including an office, retail and hotel sector update


Kenya achieved one of the African continent's highest year-on-year GDP growth results at 5.8% for 2015. It also became the fifth largest economy in Sub-Saharan Africa after it revised its GDP at the end of 2014. Kenya, and in particular Nairobi, has headlined the East African region as its gateway and preferred destination for the regional headquarters of at least 100 multinationals and corporations.

Fadheelat Noor Mohamed, Research Associate for Sub Saharan Africa commented, "On the real estate front, Kenya, and specifically Nairobi, is experiencing an unprecedented development boom across all its commercial sectors. The resilience in the property market, thus far, has been underpinned by strong economic growth, stable inflation and the country's aspiration of becoming a majority middle-income market."

Limited availability of land is causing property prices to rapidly rise. Areas along major arterial routes and in Nairobi's satellite cities, like Thika and Ngong Road, have reported land value appreciation of 100% and 200% respectively from 2007 to 2014. Noor Mohamed concludes, "Increased supply in the office and retail sectors has redefined the Nairobi skyline, although some skepticism exists around the relative demand for all the new stock coming onto the market."