Nairobi’s prime residential market is likely to recover in the first half of 2018, according to Knight Frank’s recently published, ‘Inside View Kenya 2018.’
Highlighting the city’s impressive growth between 2010 – 2012 which reached levels of 30% per annum, and subsequent price correction, the U.K-based property consultancy and brokerage speculate that an end of political uncertainty in the wake of the recent national elections will draw a close to a period of moderate growth, which will likely increase in line with a growing appetite amongst foreign investors who are turning their sights towards the country’s ‘maturing market’. According to Knight Frank’s Wealth Report 2017, 4% of global high-net-worth, “look to own homes in Kenya, led by the UK’s HNW population, 63% of whom express interest in Kenyan property, followed by 16% of South African HNWIs and 11% of Spanish, Mauritian and US HNWIs.”
On the coast and in the bush, buyers will be drawn by their hearts as much as their heads – and as history has shown, little will stop them.
Outside of the country’s political stability, there are several other factors that support growing confidence in its prime market ranging from a bullish projected GDP of 5.8%, an urbanisation rate of 4.3% as well as positive investment trends from major foreign firms, in particular, those from China. According to Charles Macharia, senior research analyst, Knight Frank Kenya, “Our outlook for Kenya remains positive in 2018. Government regulations, infrastructure spending (to meet the country’s Vision 2030 goals), combined with a growing realisation amongst developers that there is a need to phase project launches in line with demand, leads us to believe the real estate market has become more mature and resilient.”
According to Knight Frank Kenya’s managing director, Ben Woodhams, “There is optimism that the market will pick up in 2018, however, Nairobi is a key regional centre that offers a good prospect for investors, and Kenya’s relations with its neighbouring countries has never been better. On the coast and in the bush, buyers will be drawn by their hearts as much as their heads – and as history has shown, little will stop them.”
To download the full ‘Inside View Kenya 2018’ report, please visit: http://www.knightfrank.com/publications/inside-view-kenya-2018-5201.aspx