The mention of Kilimani and Kileleshwa, even if not for real estate evokes a certain perception of grandeur and luxury that must find relation to real estate. Most locals and even some foreigners are familiar with the two locations, perhaps even not physically. To some foreigners, could be just by way of a recommendation by their embassy or a former occupant, to another seeker of an ambient and serene domain. Kilimani and Kileleshwa have always been one of the prime areas in Nairobi for residential property, attracting investors, families, foreigners and locals.
To personalise the location, Kilimani’s strategy is the ideal residence it offers coupled with the optimal proximity to the CBD, both extremely desirable traits to the upper middle-income group of people either for settlement or for a routine sojourn. In addition, Kilimani has a unique blend of upper-mid income maisonettes, modern apartments and offices. A recent report by Cytonn investments showed that land around Kilimani had recorded the highest Capital appreciation of 25.8% between 2011 and 2016.
Data Fintech’s latest real estate report analyzing 3-bedroom apartments in Kilimani and Kileleshwa shows that 3-bedroom apartments are popular in both locations. Between January 2017 and January 2018, 3-bedroom apartments in Kilimani saw a drop in the average selling price by 29.16% from Ksh. 24.47 to Ksh 17.92. The average sale price in Kileleshwa on the other hand surged by 46.79% from. Ksh 15.58 to Ksh. 22.87.
Rental returns showed a similar trend with Kileleshwa having higher returns in January 2018 of up to Ksh.122,380 (an 8.9% increase) while Kilimani saw a drop in the average rental prices to Ksh. 137,520.
Despite what may seem as a poor performance in Kilimani this January, the overall returns in KilImani between January-2017 and January-2018 showed an increase of 12.7%, while Kileleshwa saw a decline in returns of -25.8%. The 12-months return on investment for a 3-bedroom apartment in Kileleshwa was 6.42% while in Kimlimani it was 9.21%.
The study concludes that considering a 3 bedroom apartment in Kilimani and Kileleshwa, an investor would most likely buy Kilimani which has higher returns than Kileleshwa.