This archive report was first published on 5 September 2019.
Kenya's real estate market has been experiencing a downturn, with prime residential prices plummeting by 1.8% in the first half of 2019, according to Knight Frank's Kenya Market 2019 report, published on September 5, 2019.
This decline is a stark contrast to the 0.4% drop recorded in the first half of the previous year, and marks a significant shift in the market's favour towards buyers and tenants.
The oversupply of high-end developments in areas such as Kilimani, Kileleshwa, and Westlands, Ruaka, Athi River and Juja has led to a contraction in developers' profit margins, as competition heats up.
Agents attribute the decline in prime residential prices to the oversupply of high-end developments, which has forced them to lower their rates.
Additionally, the decrease in expatriates relocating to Kenya has had a negative impact on the niche market, with multinationals continuing to downsize.
“These factors have transformed the market in favour of buyers and tenants, which has been exacerbated by multinationals continuing to downsize while there are fewer expatriates relocating to Kenya, impacting negatively on the niche market,” says Knight Frank.
