NAIROBI HOUSING 2025

Key Trends in 2025

• The city’s real-estate market continues to see demand, driven by urbanisation, a growing middle class and a large housing deficit. Wandering Investor+2Cytonn+2
• Developer and analyst outlooks for the residential sector are neutral overall — constrained by high construction costs, weak buyer purchasing power and oversupply risk in certain sub-markets. Cytonn+1
• Residential price appreciation is modest; for example, one report noted average year-on-year appreciation of only ~0.4 % in 2024, with a rental yield around 5.4 % in the Nairobi Metropolitan Area. Cytonn
• Affordable housing remains a priority. Many opportunities lie in the lower- to middle-end market segments, whereas premium areas continue to command higher prices and yield potential. Wandering Investor+1
• Location and infrastructure matter: neighbourhoods near major roads, expressways, and with better amenities (e.g., Westlands, Kahawa West, Dagoretti) are more attractive for both tenants and investors. Cytonn+1
• Financing remains a constraint: high building materials costs (cement, steel), interest rates, and access to mortgages slow uptake