Background 

The Much lauded Nairobi Expressway is due for completion by June 2022.The road is set to link Westlands with the Mlolongo area on Mombasa Road while cutting across the CBD and the Jomo Kenyatta International Airport on Mombasa Road. 

The Expressway will feature a four-lane and six-lane dual carriageway within the existing median of Mombasa Road, Uhuru Highway, and Waiyaki Way as well as 10 interchanges. The section between the Eastern and Southern bypasses will be a six-lane dual carriageway while the section from to the Eastern Bypass and that from the Southern Bypass to James Gichuru will be a four-lane dual carriageway

Upon completion, the road is set  to significantly reduce peak travel time on Mombasa road from approximately two hours to between 10 and 15 minutes resulting in a boom in residential real estate as well as other real estate sectors along Mombasa Road.

The Nairobi Expressway Map

There’s an opportunity for the development of large-scale affordable housing estates.

Residential real estate along Mombasa Road is typically considered cheaper with rents of a standard two bedroom averaging 30,000ksh compared to 100,000ksh in Westlands and 90,000 Ksh in Upper Hill. 

As such we expect to see increased residential demand in this market as convenience and access to the CBD and Westlands improves. Already, the area has recorded a spike in buyers with  Cytonn reporting a 7.9% average price appreciation for detached units.

In addition, an immediate appreciation of the prices of land surrounding the Expressway is expected, due to the improved infrastructure as seen with past projects such as the Thika Super Highway that resulted in over 400% increase in land prices upon its completion. This appreciation is set to have a ripple effect on other amenities provided in the area such as the quality of schools and healthcare facilities.

Expect to see increased investor interest along the Mombasa Road Industrial Zone.

While the Nairobi Industrial area remains the most popular industrial zone in the city, its congestion and inaccessibility has led to the emergence of other industrial hubs such as the Eastern Bypass zones and the Mlolongo – Syokimau industrial zones.

So far, the Mlolongo- Syokimau zones have continued to attract increased investment in the logistics sector buoyed by the completion of the standard gauge railway line in Nairobi and the Inland container depot. This interest is set to intensify upon completion of the expressway.

Notable investor activity in the area includes Grit’s announcement of their plans to set up an additional 14,741 sqm of warehousing space in Mlolongo, targeting the growing industrial and transport hub in the area in a bid to increase their logistics presence in the country.The property is set to be  located on land adjacent to Grit’s Imperial Health Sciences facility in Mlolongo.

Expect to see increased office occupier activity along the expressway corridor 

With the expressway strategically positioned along the main hubs for multinationals, the road is set to restore the promise of accessibility and convenience to investors and office occupiers. Typically, offices along Mombasa road are considered cheaper with rents averaging 90ksh per sq ft compared to 140ksh per sqft in Westlands and 120ksh per sqft in Upperhill, all inclusive of service charge.

However demand is expected to increase on both ends of the market. Just recently, Microsoft launched. their new headquarters in Westlands in close proximity to the Expressway. With ease of access from the city’s main airport assured, we expect to see increased multinational presence along this corridor.

We love your feedback! Let us know what you think about how the Nairobi Expressway will impact the real estate sector  by sending an email to [email protected].

 

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