We analysed pipeline projects within the residential, retail, office, hospitality, and industrial sectors within Nairobi. The data points to an undersupply in industrial and the affordable housing segment of the residential sector, while others such as office and retail are facing an oversupply.
Interestingly, the retail development pipeline seems to have dried up, with only 4.6% of total stock under construction, in the market. This presents an optimistic outlook in subsequent years with upcoming demand expected to balance out with existing supply creating room for more developments especially for neighbourhood malls.
On the other hand, the residential sector recorded the largest pipeline underpinned by private and public affordable housing developments pointing to the growing interest by developers to meet the demand deficit estimated at 200,000 units per annum. The data centers market too is poised for growth. Currently, Nairobi only has approximately 9 data centers against an estimated deficit of 28 3MW data centers (Tellimer insights) pointing to an exciting opportunity for data center operators.