
This summary is from a report done by Kenya National Bureau of statistics in collaboration with the CBK and state department for Housing and Urban development. The 2023/2024 Real Estate Survey (RES) targeted all establishments engaged in real estate activities drawn from Statistical Business Register.
Residential Properties.
The average property prices were weighted based on the number of properties of similar characteristics per region. This was to remove the noise in the property prices collected across regions.
Residential property prices are informed by location, unique characteristics of properties such as number of bedrooms, gross floor areas, land size of standalone units, floor area of flats and apartments. Other attributes which influence property prices include environmental factors, safety levels and existing physical and social infrastructure such as sewerage and drainage systems, roads, public transport, health centers, education centers and other social services.

The annual rent yield is a measure of the return on investment (ROI) generated from renting out a real estate property. The estimated gross annual rental yield for residential properties in 2023 is shown in the table below. The survey findings indicate that studio apartment / bedsitter had the lowest rental yield of 2.2 per cent while a two-bedroom town house had the highest rental yield of 8.3 per cent, followed by a three-bedroom maisonette at 8.0 per cent. The rental yield for a four and more bedrooms apartment was 4.4 per cent and 2.8 per cent for a one-bedroom apartment. However, the gross yields mask differences due to location and characteristics of properties.


Commercial Properties.
According to the survey findings, more than half of the commercial properties on offer for sale/sold out in 2023 were office buildings/ spaces, followed by industrial and warehousing properties at 22.1 per cent. The healthcare facilities/Medical or dental office suite were the least type of commercial property on offer for sale/sold out in 2023 at 0.7 per cent

The survey findings indicated that, more than half (63.3%) of all advertised rental commercial properties for rent were office buildings/ spaces, followed by retail premises at 16.1 per cent. Suites or condominiums were the least at 0.5 per cent.

Clearly, the real estate market in Kenya is stable and promising for the year 2025, with the increasing demand for both commercial and residential properties. Nairobi especially has a high demand due to increase in population and the city being of high global interest. Location, house type, proximity to social amenities and resources, offer a great deal in rental or sale yields.
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