This archive report was first published on 25 November 2019.
On November 25, 2019, Cytonn Real Estate, a development affiliate of Cytonn Investments, released the Nairobi Metropolitan Area (NMA) Serviced Apartments Report 2019.
The report highlighted the performance of serviced apartments within the Nairobi Metropolitan Area (NMA) in 2019, showing improved performance with a 0.2% points increase in rental yields to 7.6%, from 7.4% recorded in 2018.
Research was conducted on seven locations within NMA, including Westlands and Parklands, Upperhill, Nairobi CBD, Kilimani, Lavington, and Kileleshwa.
According to the report, the serviced apartments concept has gained popularity in recent years, offering a credible and cost-effective alternative to traditional hotels.
The main advantages of serviced apartments include utilities that enable freedom and comfort, more space than a traditional hotel room, and substantially cheaper rates when staying for a longer period.
Westlands & Parklands area was the best performing node, recording average rental yields of 10.8%, 3.2% point higher than the 7.6% market average.
On the other hand, Thika Road node (Muthaiga North, Mirema, and Garden Estate) recorded the lowest rental yield at 4.0%, attributed to the relatively low charge rates for serviced apartments within the area.
