Kenyan real estate is demand driven, going by the shortage of supply in most parts of the housing market. Developers and other providers never seem to satisfy the pent-up demand for shelter in the country, whether for houses or apartments. While it is impossible to detail the market in a single article, a survey by DataFintech profiled Kilimani and Kileleshwa, showing data for houses and apartments demand for the period from September 2015 to September 2017.
The data, collected from online real estate listings, reveals that demand for apartments outweighs demand for houses in both locations.
Kilimani, known for its proximity to the CBD, social amenities and security, is a popular stay for a majority of expatriates. According to DataFintech, the demand for apartments in Kilimani is high (93.3%). 3-bedroom apartments have the highest demand at 66.7% notwithstanding that the buyer of such would need to indulge about 11 to 15 million of the Kenyan currency. Yet such an invitation to massively spend still drew an effective demand of 52.9%, suggesting demand is quite high. 2-bedroom apartments in the same area had relatively low demand at 23.3% while demand for 4-bedroom apartments was just 3.3%.
Kileleshwa, popular among refined townsfolk and known for its serene environment and proximity to top-notch facilities, is the preserve of the so-called Kenyan upper middle class; being arguably one of the most conducive places to raise a family. Here still, apartments lead in demand for 3-bedroom residential property.
The 3-bedroom apartments, priced between Ksh. 15 Million and Ksh. 20 Million have the highest effective demand standing at 71.4% while 2-bedroom apartments had a demand of 42.1%. In stark contrast, demand for houses in Kileleshwa for the same period was just 10.5% on aggregate even though supply was also low at 8.7%.
Ideally, tenants and potential home owners are searching for secure neighborhoods with adequate utilities, proximity to the CBD and social amenities such as schools, shopping malls etc.