According to Cytonn Research, the real estate sector in Kenya is expected to continue growing on the back of sustained GDP growth, high returns over the last 5 years and government incentives to boost real estate investment especially in the residential sector.
- The real estate and construction sector contributed to 13.8% of Kenya’s GDP in 2016 and has
been improving from 12.6% recorded in 2010. This is according to the KNBS Economic Survey
- A relatively stable political environment, as well as favourable macroeconomic conditions leading
to sustained GDP Growth and a stable exchange rate have led to positive development in the
- Real estate has consistently out performed other asset classes in the last 5-years, generating
returns of over 25% p.a., compared to an average of 10% p.a. in the traditional asset classes.
- Residential units in Kenya in the last five years have generated an average rental yield of 5.0%,
while office and retail space have generated average yields of 9.0% p.a and 10.0% p.a,
- Government initiatives such as digitising of the lands ministry, issuing of title deeds, waiving of
the NCA, NEMA and title searching fees as well as a 15% tax cut for large scale developers are
creating a conducive investment climate for real estate investment and lowering construction
Read more in the 2017 Nairobi Metropolitan Residential Report