Key Trends in the Nairobi Real Estate Scene
The Nairobi real estate has
been the barometer of the real estate sector of the entire country. Cyclical
fluctuations in demand and supply for and of real estate products has
repeatedly reflected what has been taking place in the rest of the country.
Therefore, it is easy to gauge how the property market in Kenya’s urban areas
will behave in 2019 based on what observers say will take place in Nairobi.
The property market in Nairobi
is set to experience a period of robust growth in 2019, according to experts. Multiple
reports from real estate professionals indicate that there is likely to be
robust growth in demand for residential properties in various places within the
The demand for homes will be
fueled by the steady rise in Nairobi’s middle class. As more people join the
middle class, the demand for residential housing in upmarket areas is set to
continue rising steadily in 2019.
Another factor that will fuel
this trend relates to the macro environment. Currently, the country is
experiencing a period of political stability, following the debacle of the 2017
elections. Thus, it is likely that this will influence a positive market
sentiment, thus driving demand for houses and investors to put up new
structures at high speeds.
The possibility of oversupply
With the growth in demand for
houses and office space, there is a likelihood that the real estate sector of
Nairobi may experience a slight oversupply in the future. It is worth noting
that currently, the city has the highest number of malls in Africa, after South
Africa. The rise in the popularity of the mall concept has drastically revolutionized
the demand for and growth in the commercial real estate sector. It follows that
in the future, with more new malls coming up in various parts of the city, the
occupancy rate may slow down for some time.
Similarly, the oversupply
phenomenon is likely to be felt in the housing market. With new residential
establishments cropping up in many satellite towns, it is likely that home
buyers will continue rushing out of the city. However, this trend will lead to
a brief period of oversupply in which the supply of houses will outstrip the
demand for a while.
Real estate professionals
will have a critical role to play. The fluctuations of demand and supply and
corresponding changes in prices mean that buyers and sellers will need the
services of professionals. Realtors will guide home buyers and sellers on the
appropriate pricing and marketing strategies to use to get the most out of the
sector and avoid common pitfalls.