CLOSE X

Register - if you don't have an account

Yes! Sign me up for Global Property Guide's fortnightly email newsletter.


Login - for registered users

Forgot Password?
Explore destinations
continent map couldn't be loaded Pacific Europe & Russia North America Latin America Asia Africa Middle East Caribbean

 


Financial Overview

Directory

Property Search

Global Statistics

Regional Statistics






Sep 30, 2016

Yields are moderate to good in Nairobi, Kenya: expect around 6.5% from an apartment.


Last Updated: Sept. 30, 2016
NAIROBI - Houses COST (US$) YIELD (p.a.) PRICE/SQ.M. (US$)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
2 BR 140,800 697 5.94% n.a. n.a.
3 BR 202,391 1,123 6.66% n.a. n.a.
NAIROBO - Houses
3 BR 500,984 2,207 5.29% n.a. n.a.
4 BR 718,740 2,565 4.28% n.a. n.a.
5 BR 1,126,429 3,303 3.52% n.a. n.a.
NAIROBI - Apartments
4 BR 474,666 2,396 6.06% n.a. n.a.
5 BR 679,739 2,874 5.07% n.a. n.a.
Districts researched
Nairobi: Karen, Langata, Muthaiga, Gigiri, Westlands, Milimani, Runda
Kilimani, Kileleshwa, Kitisuru, Lavington, Parklands, Spring Valley, Riverside, Hurlingham and Highridge
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule

Nobody would say that Nairobi is inexpensive.  A nice big house can cost $1.1 million in what is still a poor country.  But the rental returns are rather good.

  • A 3 bedroom apartment in an elite district of Nairobi can be bought for around US$200,000.
  • A 3 bedroom house may go for US$500,000, and a 5-bedroom house may go for US$1.1 million.
  • Townhouses are somewhere between these two prices.

How much will you earn? Gross rental yields on Nairobi apartments are moderately good, at around 6.0% to 7%.   Townhouses yield around 5.0% to 6.0%.  Yields on detached houses are lower, at 4% to 5.5%.

Conclusion: Nairobi property is attractive, with significant capital gains potential.  The best combination of rental yield and capital gains seems likely to be offered by townhouses.

Round trip transaction costs are very low in Kenya. See our Property transaction costs analysis for Kenya and Property transaction costs in Kenya, compared to the continent.






Comments

#1 ROSE MURAGE | June 23, 2010

What is the minimum notice period is landlord required to give to a tenant to vacate premises

#2 MATHEW THOMAS | July 12, 2010

Who is supposed to pay the land rent? The lessor or lesse?

#3 DUDE | July 31, 2010

@Mathew, the owner pays the land rent.

Login or Register to submit a comment!

In order to promote open and spam-free conversations, Global Property Guide moderates commetns on all articles. You can expect that your comment will be published within 24 hours.



Compare Countries



Free Newsletter

Fortnightly updates from the global property arena directly to your inbox.


Email Address:





Connect to professional advice in Kenya





PROPERTY RECOMMENDATIONS

 
Download free property reports from international research houses

Our Newsletter

 
Fortnightly updates from the global property arena directly to your inbox.

Manage subscriptions