Kenya's Property Market Defies Global Trends with Exceptional Growth

Nairobi, Kenya – Kenya's property market is demonstrating remarkable resilience and delivering impressive returns, outperforming major global economies despite domestic economic inconsistencies. A recent special report highlights that the return on investment in the country's housing market has appreciated at a faster rate compared to the United States, Europe, and Australia.

Over the past 25 years, residential property prices in Kenya have soared by an astonishing 425%. This growth more than doubles the figures recorded in developed markets such as the United States, France, or Singapore. This robust performance is attributed to a strong foundation of demand growth, which has created a market largely unperturbed by inflation, fluctuating interest rates, or international economic shifts.

While global property markets experienced significant depression in 2024 and 2025, Kenya's market continued its upward trajectory. Property prices increased by 7.8% in the last year alone, significantly outpacing the less than 4% growth seen in most international markets.

A key factor underpinning this exceptional resilience is Kenya's distinctive financing model. The report reveals that less than 2% of homes are financed through mortgages. The majority of properties are purchased with cash, effectively shielding owners from the forced sales often witnessed in debt-heavy markets grappling with high interest rates.

While Kenyan buyers constitute the majority, there is a growing interest from international investors. The country's property market is poised for sustained growth, largely driven by its significant demographic dividend. With over 60% of the population under 24 years old, a substantial surge in demand for housing, goods, and services is anticipated as this young generation matures and enters adulthood.

However, the report also indicates that certain areas, such as Kilimani, which have experienced an oversupply of properties, are beginning to see price stabilization. Despite its robust performance, the market is still considered to be in its "pre-boom" phase, as widespread government housing financing remains largely inaccessible to most Kenyans.