Dunhill Consulting Limited

Investment pockets in Nairobi

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Real estate in Kenya has grown exponentially since 2015. International media houses like Forbes have labelled Kenya “the fastest growing economy in Africa”, thus attracting a pool of investors. Investing in real estate may be an uphill task in this challenging economy, but is still among the best investment options.

There has been a shift in the real estate sector due to mixed returns. It is all about smart investments where just investing in real estate is not enough. There are specific investment pockets with high returns that have been singled out in Nairobi for investors in real estate. We are here to share the cake!

As a real estate investor, the ability to track factors that trigger changes in the market is key. These are the same factors the real estate agents or realtors use when advising clients on where to invest. We recommend talking to professional real estate realtors and agents at Dunhill Consulting ltd.

Key factors:

  1. Location

Location, location, location! Look out for certain indicators such as, major developments e.g. highways, malls, and government projects. Keen attention to location improves your investment potential.

  1. Development Projects

Major Infrastructural developments like malls, highways, transport infrastructure etc., tend to influence regional growth and expand the potential investment. Projects like Tatu City, Two Rivers and Migaa Golf Estate will probably increase the area rates (both ongoing and future). Projects that are initiated by the Government i.e. the Standard Railway Gauge, Inland Ports, and Dams affect the real estate economics of an area.

  1. Emerging Markets

A major spill-over effect of development projects in an area that improves connectivity to Nairobi - the cosmopolitan capital, is an increase in trade transactions and cash flows as people move outwards to take advantage of the lower cost of living. Potential current outskirt areas are like Thika, Athi River, Kiambu, Kikuyu and more. Real estate investors that tapped into these areas early have brought to light the potential of these investment hubs. There has been a notable increase in both residential and commercial developments in these areas by investors who are trying to tap into these pocket. However, the early bird catches the worm!

  1. Government Policy

Kenya has 5-year political rule before elections. There is not only a constant shift in the key political players but the political economy too. Moreover, the current governance structure is a 2-tier government, different from what we had at independence. State policies have changed through the years; we still have Vision 2030, the Big 4 agenda and now the BBI (Building Bridges Initiative) debate. Investors of real estate need to have a keen eye on the state of political–economy of the country and changes that are being made to be able to gauge the shape the real estate industry will take. Sounds like a bit of gamble though!

Areas to currently look out for are Juja, Riuru, Thika, Athi River, Limuru, Kitusuru, Muthaiga, Lavington, Westlands, Kileleshwa, Riverside, Parklands, Runda, and Ridgeways.

Dunhill Consulting ltd always has your back when searching for your perfect opportunity to invest! We aim to tailor our services to suit your needs in a professional, cost-effective and hassle-free way. Speak to one of our Registered Estate Agents who can advise you further on the best investment opportunity today!