Prime Residential Sale Prices In Nairobi Soar In The 2nd Half Of 2021
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- 29 Mar 2022
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Prime residential sale prices in Nairobi marginally improved by 1.2 percent over the past six months to December, compared to a 1.1 percent decline in the same period in 2020 due to the re-opening of the economy and increased investment activity. This is according to Knight Frank’s second half 2021 Kenya Market Update.
Prime residential rents remained unchanged over the past six months to December, compared to a 4.17 percent decline in during the same period in 2020. The stability in rentals is mainly attributed to increased occupancies across most high-end gated properties.
The prime residential sector still remains a buyers’ and tenants’ market due to continued oversupply in most locations.
“We are seeing a rebound in the residential market as there is now less uncertainty that had been brought about by the p******c. We expect the prime residential sale and rental rates to remain stable in the first half of 2022 due to the favourable projected economic environment,” said Ben Woodhams, Managing Director at Knight Frank Kenya.
A significant amount of office space was released into the Nairobi office market in the second half of 2021, after the completion of several Grade A office blocks in the capital. This includes the iconic mixed-use Global Trade Centre (GTC) whose office tower has circa 625,000 square feet of lettable area.
In the second half of 2021, the absorption of Grade A and B office space increased by 60 percent compared to the first half of 2021 as a result of pent-up demand from 2020. Players in the co-working space and those in financial services took up most of this space with average occupancy rates across commercial buildings at the end of the year improving to 78 percent from 73 percent in the first half of 2021.
Over the review period, prime commercial office rents increased from US$1.10 to US$1.20 per square foot per month. However, the sector continues to be a tenant’s market due to the prevailing oversupply situation. Read More…
