Property Matters
Property Matters

Why Investing in Property in Nairobi is a Smart Move for Constant Increasing Rental Income

A real estate agent offers a sample home insurance home to sign the agreement. with documents of the contract of sale or lease
Elegant Properties by : Elegant Properties

If you’re looking for a solid investment opportunity with the potential for constant increasing rental income, consider investing in property in Nairobi. The Kenyan capital is a rapidly growing city with a thriving economy, making it an attractive location for real estate investment. Here are some facts and figures that show why investing in property in Nairobi is a smart move:

A high angle view of downtown Nairobi with a road traffic and buildings
  • Strong economic growth: Nairobi is the economic hub of Kenya and a major player in the East African region. The city’s GDP has grown at an average rate of 5% per year over the past decade, outpacing the national average. This strong economic growth is driving demand for housing and other real estate, making it a good time to invest in property.
  • High demand for rental housing: The demand for rental housing in Nairobi is high and is expected to continue growing in the coming years. With a growing population and increasing urbanization, more and more people are moving to the city in search of employment and better opportunities. This creates a constant demand for rental housing, which can provide a steady stream of income for property investors.
  • Increasing rental prices: As demand for rental housing in Nairobi increases, so do rental prices. According to data from the Kenyan Property Developers Association, rental prices in the city have been steadily increasing over the past decade. In 2010, the average monthly rent for a two-bedroom apartment in Nairobi was KES 25,000 (about $250). In 2020, the average monthly rent for the same type of apartment was KES 50,000 (about $500). This trend is expected to continue, providing the opportunity for investors to increase their rental income over time.
  • Attractive returns on investment: Investing in property in Nairobi can be a lucrative venture. According to a report by Hass Consult, the average return on investment for rental property in Nairobi is around 8-12% per year. This means that for every KES 1 million (about $10,000) you invest in a rental property, you can expect to earn KES 80,000 to KES 120,000 (about $800 to $1,200) in annual rental income.

Stable real estate market: Despite fluctuations in the global economy, the real estate market in Nairobi has remained relatively stable. This makes it a relatively low-risk investment compared to other asset classes.

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