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Why the Kenyan House Owner is Drifting Outskirts for Budget Rentals

Nairobi house
Posted By:John MugweJohn Mugwe

Learn more about affordable outskirts in Nairobi, Kenya and the reasons why people are moving away from the city centre.

Recent trends in Real estate industry sign posts the demand for affordable yet quality housing units. Housing and accommodation consumption metrics indicate high preference to relocating and living in the outskirts of Nairobi CBD, in neighborhoods such as Nairobi, Kiambu, Kajiado and Machakos counties.

Nairobi appartment

Major factors that rental-housing and vocational accommodation consumers look for when looking to move to a place includes the availability of social amenities, security, and distance from the main road. This market trend has been attributed to the fact that there has been increased market in flow of high-end apartments and residential flats, which do not meet the current market demand.

Kiambu County currently leads in offering more affordable housing solutions because of its closeness and accessibility to the city. Notably, there has been a low commitment amongst real estates developers in undertaking capital-intensive projects owing to the slow returns on investments (ROI) and lean profitability indices, as the market tends to “shy off” from high-end housing market.

The cost of building materials has been increasing in the past few years and this has massively demotivated developers and major Real estate companies in Kenya making it more expensive to initiate high net worth structures or in some case compromising the finishes. Use of substandard materials has led to the perennial collapsing of buildings that end up silencing some lives. The affordable housing programs dabbed the Big 4 agenda by the jubilee government could be part of the mitigating missions.

Nairobi County has seen the prices of rental houses going up especially in upmarket areas such as Killimani and Kilileshewa owing to the huge competition in workers looking for jobs that pay well and hence the need for better housing solutions for them. Most real estate property listing companies and websites in Kenya feature properties targeting high net worth individuals.

Another market trend is emerging really strong especially in this first Q1 of 2019 is the demand for fully furnished apartments in upper markets such as Westlands, Parklands as well as Nyari Estate that offer a basic fully furnished room(s) from $20.This is being attributed to the fact the most people now prefer furnished apartments than staying in hotels whenever they are far from home as they can enjoy more privacy. The urge to keep close to the local culture away from the noisy and exhaust prone City center Motels and Guest rooms.

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Traditional residential areas such as Ongata Rongai and Kitengela in Kajaido County are witnessing slow growth rate in rental spaces owing to the perennial issues of prolonged traffic jams and constant water shortages.

With the ever-ballooning demand for budget housing, we hope to see real estate players and housing contractors in Kenya opting middle-income housing in order to scale up their profitability. Kenyans should then start browsing affordable yet finely finished singles, bedsitters, one bedrooms on property24, buynrentkenya, Villa care and haofinder.com. At Hao Finder, we help you get Property for Sale in Karen, Langata or Property for Sale in Mombasa. Looking Houses for Sale in Runda, Westlands or commercial Land - Plots of Land for Sale in Nairobi? We got you.

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