Market Trend – Professional View

For the past two decades, the Kenyan real estate market has grown exponentially as evidenced by its contribution to the country’s GDP which grew from 10.5% in 2000 to 12.6% in 2012 and 13.8% in 2016. The growth is driven by;

1. Infrastructural developments such as improved roads, utility connections, upgrade of key airports;
2. Stable GDP growth which has averaged at 5.4% over the last 5 years against a Sub- Saharan average of 4.1%;
3. Demographic trends such as rapid urbanization at 4.4% p.a against the world’s 2.5% and population growth averaging at 2.6% p.a; and
4. High total returns averaging at 25.0% against 12.4% in the traditional asset classes.

These factors have led to the development of unique trends across the various real estate themes, as investors sought to gain high returns and buyers sought aspirational lifestyles and quality products.

Source: CYTONN INVESTMENTS September, 2022 / Articles