Nairobi’s residential market continues to face undersupply in the Low - Middle income segment

Nairobi’s residential market has been in a state of constant undersupply as the population and demand continue to grow at a faster pace than housing delivery.

Most of this demand is within the lower to middle class segment, although new supply has historically focused on the luxury segment. However, the past 3 years have been landmark years for development in the middle income space, with the advent of the Government’s drive towards affordable housing. 

Based on the data we are tracking, there are over 160,000 units in the pipeline across the different classes of luxury to affordable housing projects. Some of the major pipeline projects we are expecting are:

• The Ridge by Cytonn Investments
• Tsavo Skywalk by Tsavo
• MiVida Garden City by Shapoorji Paloonji
• Cascadia Apartments by Centum Group
• Alturah Upperhill by Canaan Developers Limited
• 1870 West Residences by 1870 West Limited

The market is also seeing increased demand for short let apartments. Active rentals in Nairobi have grown two-fold between 2019 and 2022 to over 12,000 rentals. As a result, this is also emerging as an opportunity for some developers looking to debut the market.

As such, based on our findings, the outlook for the market is positive, especially in the non-luxury segments.