Kenya’s residential property market is experiencing significant growth across all income levels, fueled by increasing demand from local buyers, expatriates, and international investors.
This surge in both the luxury and affordable housing sectors will be a central focus at the upcoming 2025 East Africa Property Investment (EAPI) Summit, taking place in Nairobi on May 7th and 8th at the Pullman, Upper Hill.
The Kenyan housing market is currently witnessing a dynamic period, with developers and stakeholders keen to capitalize on the evolving real estate landscape. The luxury segment is being driven by Kenya’s growing number of high-net-worth individuals and expatriates seeking premium properties in exclusive neighborhoods. Projections indicate a further rise in dollar millionaires in Kenya to 16,900 by 2026, as highlighted in the 2024 Africa Wealth Report. Notably, Nairobi ranks among the top global cities for luxury real estate price growth, even outperforming major European capitals in some instances.
The EAPI Summit, a premier real estate event attracting over 450 global investors, developers, and industry professionals, will delve into the investment opportunities within Kenya’s high-end residential market. Institutional investors and development finance institutions are increasingly focusing on the country’s residential sector, funding various development projects, including mixed-use developments that blend residential spaces with retail and leisure facilities, appealing to younger buyers seeking modern living solutions.
Financial institutions like Stanbic Bank/Standard Bank are actively supporting this growth through mortgage financing, construction funding, affordable housing solutions, and blended finance options for student housing. As a gold sponsor of the EAPI Summit, Stanbic Bank aims to connect investors with industry experts and back projects aligned with their focus on the affordable and middle-income housing segments, recognizing the strong demand and potential social impact in these areas.
Niyi Adeleye, Head of Real Estate Finance for Africa Regions at Standard Bank Group, emphasized the importance of project proximity to business hubs, transport networks, and the quality-price balance in shaping successful projects within the affordable and middle-income segments, which are significantly driven by rental and institutional investment markets.
Despite the considerable growth potential, Kenya’s residential market faces challenges. Developers often struggle with access to long-term financing due to high interest rates and stringent lending requirements. Land tenure issues and legal disputes can also delay projects and increase costs. Furthermore, demand for both luxury and affordable homes often outstrips supply, leading to competitive pricing pressures.
The EAPI Summit will feature leading experts, including Hass Consult, a company specializing in high-end homes in Nairobi, who are joining Stanbic Bank as sponsors to help investors navigate these challenges. Farhana Hassanali-Hashmani, CEO of Hass Consult, highlighted the increasing openness of Kenya’s luxury housing market to global buyers, driven by a more sophisticated consumer with elevated expectations for quality, design, and lifestyle. This global influence is translating into a greater willingness to pay for luxury and value-added amenities, with developers now investing more in high-quality finishes, curated experiences, and thoughtful design.
Hassanali-Hashmani also noted a shift in the demographic of luxury buyers, with younger, aspirational individuals investing in compact yet premium residences where lifestyle and convenience are paramount. Additionally, buyers are increasingly environmentally conscious, seeking eco-friendly and energy-efficient housing developments.
Both Stanbic Bank and Hass Consult remain optimistic about Kenya’s residential market and will actively explore opportunities at the EAPI Summit, connecting investors with industry expertise and potential projects. The 12th East Africa Property Investment Summit will take place on May 7th and 8th, 2025, at the Pullman, Upper Hill, Nairobi, Kenya.
ABJ/APA