How Real Estate Companies Are Quietly Making Billions in Kenya

Investors in Kenya’s booming real estate industry are reaping big, with a new study showing the sector is delivering investment returns unequalled globally.
The sector that is among the big employers in the country has emerged as the top of the leading property markets globally, with a 7.8 per cent increase in property prices in the year to June 2025.
According to HassConsult’s Special Report released on Tuesday, Kenya’s property prices and rental yields are ahead of South Africa, which registered a 3.46 per cent increase, the USA (2.38 per cent), Canada (-1.25 per cent), the UK (2.83 per cent), France (1.11 per cent), Switzerland (2.58 per cent), Singapore (4.15 per cent) and Australia (4.74 per cent).
The study has found that the real estate sector is thriving on the back of off-plan developments, which have returns of up to 18 per cent.
The study further found that Kenya’s rental yields also remain above the global average, at 5.5 per cent, delivering a combined return in the year to June 2025 of 13.28 per cent.
This return is higher still for the thousands of Kenyans who have bought properties in off-plan developments.
“The Special Report analysed eight prime off-plan developments in Kenya, reporting an average return on investment in 2025 of 18.06 per cent,” HassConsult said.
Off-plan developments refer to investments in properties before they are completed. This is a trend that has grown over the years, with data showing most Kenyans prefer to buy or build directly instead of picking up mortgages.
“Homes in Kenya are fully paid, which makes the market super-resilient. Owners rarely end up grappling with mortgage repayments they can’t meet, preventing the waves of forced sales suffered in other economies,” said HassConsult Co-CEO, Sakina Hassanali.
This advantage, among other factors, has seen the residential property prices rise by 425 per cent in Kenya since 2000. This is a remarkable growth compared to the U.S., France and Singapore, which have witnessed a growth of 201 per cent, 151 per cent and 122 per cent, respectively, over the same period.
“Multiple factors are driving down property demand in western and eastern economies, not least of which is declining populations, while the value of property in Kenya’s expanding economy and population only keeps growing,” said Sakina.
In 2024, off-plan developments gained popularity in Nairobi’s suburbs such as Kilimani, Kileleshwa, Westlands, and Upper Hill. Additionally, there was a noticeable trend towards sustainable and smart homes, gated communities, and mixed-use developments throughout the country.