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.

Robust growth

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 city.

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.