The Kenyan real estate market has grown significantly in the last 20 years, contributing to the country’s GDP, which increased from 10.5% in 2000 to 12.6% in 2012 and 13.8% in 2016, fueled by:
- Infrastructure improvements such as upgraded roads, utility connections, and airports;
- Consistent GDP growth averaging 5.4% over the last 5 years, compared to the Sub-Saharan average of 4.1%;
- Demographic shifts, including rapid urbanization at 4.4% annually compared to the world’s 2.5%, and population growth averaging 2.6% annually; and
- High total returns averaging 25.0% compared to 12.4% in traditional asset classes.
These factors have led to distinct trends in various real estate themes as investors seek high returns and buyers desire aspirational lifestyles and quality products.