- Land prices in Kilimani have tripled since 2011 despite challenges experienced in the area.
- As of 2023, an acre of land in Kilimani goes for Ksh 390 million compared to Ksh 114 million in 2011.
- You can buy an apartment in Kilimani for as little as Ksh 5 million.
According to Vaal real estate market analysis, Kilimani property value has risen by more than 200%, going from Kshs 114 million in 2011 to Kshs 390 million in 2023.
This, coupled with the fact that properties in Kilimani have an attractive return on investment, makes it one of the most attractive neighborhoods for people looking to buy an apartment in Nairobi.
READ ALSO: How to Calculate Return on Investment on Your Rental Unit
The average rental yield in Kilimani is 10.1% compared to the overall market average of 8.2%. If the current market trend holds constant, Kilimani might become the new work-live-play intracity domain, finally uprooting Westlands from its position as the most vibrant region in Nairobi.
READ ALSO: Kilimani Neighbourhood Guide
Table of Contents
Why Is There an Increased Demand for Property in Kilimani?
Kilimani’s above-average rental yield is proof of the increasing popularity amongst buyers and renters. This can be attributed to key factors such as property variety, a vibrant social and entertainment scene, and the availability of major amenities. But there is more to it than meets the eye. Here is why;
Property Features
Recent developments have played a major role in the increased demand for apartments for sale in Kilimani. Most apartments bear modern features like sliding wardrobes, LED bathroom mirrors, wall mounted ovens and cookers, wall mounted cooker hoods, granite countertops and spacious balconies that appeal to potential home buyers and renters.
Incorporating new architectural designs in their floor plans makes the houses more attractive for families and individuals who want houses that meet their aesthetic needs.
Price Point
The beauty of the Kilimani property market is the availability of properties at different price points. Starting from very affordable units to grand designs. Unlike other intra-city neighborhoods, buyers can find affordable housing in Kilimani.
Kilimani has studio apartments for first-time home buyers selling for as little as Ksh 5 million. Duplexes go for upwards of Ksh 75 million. It is an ideal place for buyers and renters looking to spend very little or a pretty penny for a beautiful apartment in the city.
READ ALSO: The Alba Garden Apartments in Kilimani
Amenities
Kilimani has malls, schools, churches, clinics, hospitals, gyms, and various amenities for all your daily needs. This makes it the ideal work-live-play zone. Also, a number of large organizations have their headquarters or branches in this area, making it desirable to people who want to live near their work places.
You can cater to all your needs, and your family’s needs within a small radius. This makes it convenient and affordable as you do not have to commute to a different location to shop or take your kids to school.
Social Scene
Kilimani has a wide selection of nightclubs, eatery spots, restaurants, movie theatres, boutique social joints that host lively events, and so much more.
Residents can access various restaurants, fast food chains, nightclubs, and other entertainment areas within walking distance of their houses. This makes it an attractive living area for young individuals and families interested in living within a vibrant neighborhood.
Will the Property Boom in Kilimani Last?
Yes. Due to the increased demand for apartments and office space by expatriates and foreign companies, chances are the boom is bound to last a few more years.
Additionally, the demand for modern facilities in apartment complexes by middle-income families and individuals will continue to provide a consistent supply of home buyers and tenants.
Lastly, the constant need for short-term rentals by business people and tourists will continue to provide a constant stream of clients for Airbnb in the area, thus creating demand for apartments in Kilimani.
READ ALSO: How to Start an Airbnb Business in Kenya and Make Money
Is Buying Property in Kilimani a Good Investment?
Yes. There are four main ways to benefit from the property boom in Kilimani. Firstly, if you buy a property to live in, the value will continue appreciating while you occupy it. Ultimately earning you capital gains when you decide to sell it.
However, keep in mind the capital gain tax that you will have to pay when selling the property.
READ ALSO: Capital Gains Now at 15%: What it Means For Property Sellers
Secondly, should you choose to rent it out, you will reap double the benefits when you earn rental income and the capital gains once you decide to sell it.
According to Mr James Mbithi the Sales and Marketing Director at Anno Real Estate, Kilimani’s competitive rental rates will enable property buyers to recoup their investment in 7-10 years.
Alternatively, you can furnish the apartment and let it out on Airbnb or to expatriates on a short-term basis, increasing your rental income. Lastly, if you want quick returns, you can buy an off-plan unit and sell it once it is ready for occupation at the current market rate.
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