Kenya's high-net-worth individuals (HNWIs) expanded their luxury residential property acquisitions in 2018, with 18% of the super-rich making domestic purchases amid a 4.5% decline in prime home prices, according to Knight Frank analysis.
Nairobi's ranking on the Prime International Residential Index (PIRI) dropped to 92nd in 2018 from 75th in 2017 as oversupply and economic pressures prompted developers to offer higher-quality properties at reduced rates. The firm noted that luxury home values in the capital had risen 38% since 2010, with properties priced above $800,000 (Sh80 million) classified as prime units.
"The price correction presents a good opportunity for high-net-worth individuals to buy high-end properties at discounted prices," said Knight Frank Kenya Managing Director Ben Woodhams. The report revealed 39% of Kenya's super-rich held domestic property investments, with 18% making additional purchases in 2018 and 15% buying abroad.
Global comparisons showed Cape Town maintaining 28th position with 3.8% price growth, while Manila recorded 11.1% increases. Knight Frank's data indicated 22% of HNWIs allocated funds to property, 25% to equities, and 22% to cash, with projections showing Kenya's HNWI population growing from 9,482 in 2018 to 11,584 by 2023.
Nairobi housed 82 of Kenya's 125 Ultra High Net-Worth Individuals (UHNWIs) as of 2018, with manufacturing, retail, and financial services driving wealth accumulation. The number of UHNWIs rose to 125 from 121 in 2017, reflecting the city's rapid growth in ultra-wealthy residents.
