2024 has has had many twists and turns, some expected and others that caught us off-guard. The Kenyan Real Estate Market ends on a rather interesting note this year.
We kicked the year off with heated discussions around Affordable Housing and the housing levy. Then the finance bill and the national budget came into the picture. We learned that the housing docket had a big budget allocation while the infrastructure sector, more specifically the roads docket had budget cuts.
And what did this mean for the real estate industry. It meant the residential Real Estate market was closing off, and fewer locations were going to open up in 2024. This trajectory led to a few unexpected surprises. A few old locations made strong comebacks. Meanwhile, some locations that have worn the crown of fame took a backseat, in terms of popularity. Here are 8 locations that gave us both pleasant and nasty surprises this year:
Westlands
The Nairobi Westland property market is finishing strong in 2024 – which might indicate a good year in 2025. The location managed to rival some of the biggest names in the Kenyan Real Estate market, such as Kilimanu and Kileleshwa. Westlands, not only dominated the apartment market, but it also kept its position as a leader in commercial real estate. But what worked in the location’s favour, you may ask?
For starters, its biggest rivals have been in the news for all the wrong reasons. From noise pollution, to out of control development. Kilimani, for instance, is not new to this kind of publicity. Year in, year out, residents complain of noise pollution and sporadic development. New high-rise buildings are coming up ruthlessly, defying zoning laws.
Though the property values in Kilimani remain high, the location is not winning the popularity context. Kileleshwa is also facing a similar challenge, leaving Westlands to dominate the middle income market, especially for developers and buyers looking for a developed location close to the CBD.
The expressway, which connects Mombasa road and theJomo Kenyatta International Airport has also favoured westlands. The location is now the go to destination for international travellers.
If Westlands sustains its position the Kenyan Real Estate Market in 2025, investors will be reaping big, especially when it comes to rental yields.
Tatu City
Tatu City served us with both pleasant and unpleasant surprises this year. In the commercial real estate sector, several global brands launched new multi-billion shilling facilities at the Special Economic Zone in 2024.
Tatu city has been on a steady rise over the last couple of years and property values are growing pretty fast. There’s no doubt, it is one of the most successful special economic zones in Kenya. However, in July, 2024 the zone’s management accused Kiambu County government of extortion through an expose.
A letter circulated online as alleged proof that the governor and other county officials demanded land for several purposes in Tatu City. These included 2 acres for the governor’s mansion and additional land for public utilities. They further accused the county government of frustrating them by denying them approvals.
In response Kiambu County government and the county’s lands CEC filed separate law suits, suing Tatu City for defamation. Adding to its woes, several companies (some in real estate) associated with Tatu City are under investigation for tax evasion and money laundering, according to an article published by the Daily Nation in November, 2024.
Despite the legal woes, the Special Economic Zone has had a good year and perhaps it’s fortunes will persist in 2025. But as with any property market, only time can tell.
Juja
Juja has been on a winning streak in 2024, when it comes to property values. At the end of the second quarter in 2024, the Hass Consult land index reported that Juja experienced the highest price jump (20.1 percent) compared to other locations. An acre of land in Juja was retailing at about 21.7 million at the time.
Juja’s winning streak comes as no surprise for real estate enthusiasts. With the Kenyan real estate market expanding, we have fewer land parcels close to the CBD available for sale. Juja is roughly an hour from nairobi’s CBD. The location connects well with other satellite towns through several Bypass Roads and the Thika Super Highway. As such, it is next in line after prime locations filled up.
Juja will most probably keep winning in the foreseeable future as buyers scramble for what’s left of the strategic locations, near Nairobi.
Katani/Syokimau
Since Katani hit the market in the early 90, the location has been rather shy. Often moving in silence along the property ladder. Katani is strategically, sandwiched between prime locations like Syokimau, Utawala and Lukenya. 2024, was definitely a great year for Katani in terms of land values. Like Juja. Katani and adjacent locations, such as Syokimau and Mlolongo are the next big thing after we’ve filled up the metropolis.
The price jumps for these Mombasa Road estates were impressive this year with Syokimau experiencing a 15.2% price jump in quarter 2, 2024. An acre of land in Syokimau was going for about Shs 34 million. Katani was fetching about Shs 25 million for an acre, as of quarter two 2024.
Syokimau’s apartment market also made a major comeback in 2024 with Sabaki, a nearby estate, just after Mlolongo joining the list of big wigs in that market.
Other factors that played a big role in the rise of Mombasa Road’s estate this year are infrastructure, accessibility and increasing commercial activities. The expressway has eased up traffic significantly. Commercial and industrial real estate developers have also pulled populations to the area.
Katani and Syokimau will definitely continue to dominate the Kenyan Real Estate Market as the go to neighbourhoods along Mombasa road.
Thika
Thika is the underdog we did not see coming. Although the once, small town did not come from nowhere, it’s rise to the top in 2024 was unexpected for many. Thika town has grown steadily through the years, from a small satellite town that connects several counties (Machakos, Murang’a, Kitui, Garissa and others) – to a relatively big town, rivaling some of the supposedly bigger towns.
Related:
Eyes on Thika Real Estate as Governor Lobbies for Smart City Status
In 2024, Kiambu Governor made major strides in the journey to having Thika declared as a Smart City. In the past, this ambitious plan has been met with obstacles, but this year, this reality is coming closer. The town’s road development budget was expanded significantly by the National government in support of the town’s ambitious journey to city status.
Due to the speculative nature of the Kenyan real estate market, property buyers have camped in Thika buying properties while they are still affordable. Increasing demand has definitely pushed up the town’s property values and this trajectory is likely to go on in 2025 and the coming years. But as it is with real estate, you just never know.
Ngong
In 2023, Ngong was on a remarkable winning streak. It was the fastest growing satellite town and property values in various location in Ngong grew fast. In 2024, however, Ngong surprised us with its unexpected downward spiral. The hype in Ngong properties suddenly died down in 2024. In 2023, Ngong’s land values increased four-fold, a fact that was attributed to the growth of Karen as a commercial hub and the infrastructure development.
10.7%
Ngong property values increased by 10.7% in Q1. 2024.
Hass Consult Land Index
With Suswa already connected to the commuter railway line, the Riruta line which was to start in Nairobi and cut through Karen and Ngong excited property buyers. In 2020, Ngong’s rental values were also on a bullish rise to the top as the area too over Kenyan real estate market as Nairobi’s master bedroom.
In 2024, however, Ngong’s fortunes seem to have shifted. As of the first quarter of the year, property values only increased by 10.7%. Although these numbers are not bad, the location has barely maintained it’s value curve in 2024, despite its strategic position. Perhaps in 2025, fortune will once again knock on it’s doors.
Kamiti Corner
Located along Kamiti Road and close to Tatu City, Kamiti Corner is one quiet but fast rising location. The growing estate is not just attracting prime residential properties, but is also attracting modern commercial hubs. Big developers have been flocking to the location over the last few years.
In 2024, developers launched several middle income residential developments, with some fetching as much as Shs 40 million plus, per unit.
Kamiti Corner’s rising popularity may be attributed to its strategic location which is accessible from the Thika Superhighway, Kiambu Road and Nothern Bypass. It is also a serene location with the perfect balance for development and nature.
In 2024, Kamiti Corner has served both pleasant and unexpected surprises. On one hand, the location continued to grow quietly, attracting mega developments. On the other hand, it barely made news with major real estate observers still failing to index it. Despite it’s quiet growth, Kamiti Corner is one location in Kenyan real estate market to pay attention to.
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