Westlands is a vibrant residential neighborhood located within Nairobi, Kenya. This location has consistently attracted local and foreign investors. This highly sought-after upmarket residential area is leading the market in monthly website views and leads.
It is followed by neighbourhoods like Lavington, Karen and Kilimani. An outstanding 85% of property seekers in Westlands are Kenyan which is unlike other prime areas like Kilimani which highlights Westlands’ popularity among Kenyan residents.
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Why Is Westlands So Attractive?
Westlands was originally a residential district during the colonial period and primarily inhabited by affluent Kenyans and Asians. In the 1990s, land and office spaces within the CBD become scare. This led to businesses relocating to areas like Upper hill and Westlands thus transforming them into a commercial hub. Currently, Westlands still remains a popular area for both local and foreign high-net-worth individuals. This is due to:
- Infrastructure – The structures within Westlands such as the Nairobi Expressway provide connectivity to key amenities such as a direct access to Jomo Kenyatta International Airport and Back to Westlands. Other key structures within Westlands include Waiyaki Way, Raphta Road, and General Mathenge Road.
- Prime Amenities – Westlands is home to top-tier amenities like hotels, schools and offices. There are numerous landmarks within the area such as Sarit Centre which is the first formal retail center in kenya, GTC Tower and Kempinski Hotel. Westlands also holds headquarters of major corporations such Safaricom, Microsoft and Google.
- Proximity to CBD – Westlands is located just 3km from Nairobi CBD which offers a quick access.
- Embassies and Security – The presence of international organizations has enhanced the security and desirability of the area. Some of these organizations includes embassies of Germany, South Korea, and Australia.
Housing Developments in Westlands
67% of the real estate market of Westlands is dominated by deluxe housing projects. 14% and 19% of the market goes towards luxury and ultra-luxury developments respectively. According to Estate Intel, there are approximately 4,181 residential units in Westlands.
Within the 4,121, 76.2% are already completed and 23.8% are in in development. Additionally, the most common type of units are 2 and 3 bedroom. This makes up 23% and 31% of the market respectively. Some of developers that dominate the area include Hass Consult International, and Elegant Properties Ltd.
Pricing Trends
Since 2022 the rental prices in Westlands have been steadily increasing while property selling prices have declined.
Category | 2-Bedroom Apartment | 3-Bedroom Apartment | Additional Insights |
---|---|---|---|
Average Rent (per month) | Ksh 150,000 | Ksh 200,000 | Rental prices have been steadily increasing since 2022. |
Average Selling Price | Ksh 15 million | Ksh 21 million | Property selling prices have declined since 2022. |
Rental Demand | Strong | Strong | Demand for rental units remains strong despite the decline in property selling prices. |
Average Rental Yield | 7.2% annually | 7.2% annually | Westlands outperforms other prime areas like Karen and Upper Hill (average 6.7%). |
This decline in property prices is partly due to factors such as expensive loans and high property rates, but demand for rental units remains strong.
Conclusion
The demand within Westlands is growing thus still continues to offer strong investment potential. This is particular for rental properties where demand is growing. Factors such as superior infrastructure, amenities and security converge to make this area an attractive destination for both high-net-worth individuals and businesses. This is the key area for investors looking for higher-than-average return within the real estate market.