New Release
Over the last five years, the Kenyan Real Estate Industry (“the Industry”) has been growing rapidly at a compound annual growth rate (CAGR) of 5.97%, making a sizable contribution to the Country’s Gross Domestic Product (GDP). The Kenyan real estate industry encompasses various segments, including land, residential, and commercial real estate. During the review period, all segments have experienced growth, driven by factors such as location, affordability, quality, and convenience. The commercial real estate segment, in particular, has seen notable expansion due to increased demand for office space and business centres. The flourishing small and medium-sized enterprise (SME) sector, alongside the entry of multinational corporations into the Kenyan market, has heightened the need for workspace. The residential segment of the industry has also experienced substantial growth, primarily driven by rising population and increasing rural-urban migration, particularly in urban centres. In response to these demographic shifts, there is a pronounced demand for affordable housing solutions that provide decent living conditions for low-income individuals. This trend is further fuelled by a growing desire for homeownership, which has led to an uptick in the uptake of mortgages and other financial products in Kenya. Furthermore, land valuations in major cities and their outskirts have appreciated significantly due to ongoing infrastructural development and the availability of social amenities. Agusto & Co. projects a 5.28% CAGR for the Industry over the next five years through 2029, driven by the growing population, urbanization, government interventions such as the affordable housing initiatives, increased investment in green buildings and underlying macroeconomic factors.
The 2024 Kenya Real Estate Industry Risk Report captures the following:
• An Overview of the Kenya Real Estate Industry
• Industry Structure
• The Regulatory Environment
• Key Industry Players
• Trends and Recent Developments in the Industry
• Key Risk Factors
• SWOT Analysis
• Industry Outlook and Risk Rating
