Luxury rental prices stagnate in Nairobi

Rent in Nairobi’s luxury residential apartments is now reported to have stagnated during the first three months of this year.

According to Knight Franks’ Prime Global Rental Index, the slowdown in rents for Nairobi’s high-end properties was caused by budgetary limits set for expatriate staff, who make the majority of high-end tenants.

This in turn caused the demand for high-end rental properties to slow down.

At the same time, the low purchasing power of aspiring home owners has also seen developers opt to rent out new units which were initially meant to be sold in order to offset pending loan obligations.

Knight Frank has further noted home buyers are showing greater demand for large duplex apartments as opposed to stand-alone houses due to their perceived security considering that they are located within gated compounds.