Introduction

As a vibrant residential neighborhood in Nairobi Kenya, Westlands has historically attracted investments from natives and foreigners. Compared to other affluent neighbourhoods in the city, Westlands tops as the most sought-after high-end residential area according to the data by our partners BuyRentKenya, based on overall monthly website views and leads. Other areas including Lavington, Karen, and Kilimani follow respectively. Notably, 85% of users and potential clients are natives, which is slightly higher compared to peer areas such as Kilimani with 80%, affirming its popularity in Kenya.

Source: BuyRentKenya

 

Why Is Westlands So Attractive?

Westlands was predominantly a residential district in the colonial period, majorly inhabited by the then-affluent Kenyans and Asians. Due to the scarcity of land and offices in the Nairobi CBD, businesses began relocating to the nearby outskirts in the 1990s i.e. Upperhill and Westlands, consequently making it a commercial hub as well. It is still currently dominated by high-networth individuals, both natives and foreigners. Some of the factors that have driven its attractiveness over time include:

• Sufficient infrastructure such as the Nairobi Expressway provides fast and direct access to and from the Jomo Kenyatta International Airport. Other roads servicing the area include Waiyaki Way, Raphta Road, Muthangari Drive, and General Mathenge Roads among others.
• Ample and prime amenities: Westlands is home to prime malls, hotels, schools, and offices such as the Sarit Centre – Kenya’s first formal retail center, GTC Tower – Kenya’s second tallest building, Radisson Blu Hotel, and Kempinski Hotel. Additionally, it is home to various telecommunication, tech, financial, and investment firms headquarters such as Sanlam, Absa Bank, Safaricom, Microsoft, Google, PwC, and Deloitte among many others.

• Proximity to the city center. Westlands is a mere 3km from Nairobi’s CBD thus enhancing its quick accessibility.
• Proximity to international organizations such as the embassies of Germany, South Korea, Finland, Australia, and the Netherlands. These in turn also boost the overall security of the area.

 

67% Of Housing Developments In Westlands Are Deluxe, While Luxury And Ultra Luxury Constitute 14% And 19% Of The Market Share, Respectively

Regarding project breakdown, there are approximately 4,181 units in Westlands tracked by Estate Intel out of which, 76.2% are completed whereas 23.8% are in the pipeline. Moreover, 67% of these projects are deluxe, with 2 and 3-bedroom units being the prominent typologies at 23% and 31%, respectively. Additionally, key developers behind the area’s construction are private firms which include Hass Consult, Avic International, and Elegant Properties Ltd among others.

Source: Estate Intel

Featured Project:

Source: Estate Intel

 

Overall Rents In Westlands Have Generally Been On The Rise, While Prices Have Been On A Downward Trend Since 2022

In terms of pricing, monthly rents and selling prices of 2-bedroom apartments in Westlands currently average at Kshs 150,000 and Kshs 15 mn, respectively, while 3-bedroom units average at Kshs 200,000 and Kshs 21 mn, respectively according to BuyRentKenya. Interestingly, overall rents have generally been increasing over the past five years indicating an increase in demand for rental units, while selling prices have been declining since 2022. This is underpinned by a slight decline in demand emanating from factors such as costly loans, and high property rates. Overall, yields in the neighbourhood currently average 7.2% p.a., which is higher compared to yields in similar residential areas like Karen and Upperhill.

Source: BuyRentKenya

 

Ultimately, Westlands offers yields above the upmarket average of 6.7%. Notably, investment opportunity lies in rental projects as evidenced by the growth trend.

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If you have research requirements or are thinking about investing in Kenya’s residential property market, reach out to our Capital Advisors team using [email protected].