Home Business Property in coast now rival Nairobi as prices soar on demand

Property in coast now rival Nairobi as prices soar on demand

0

Increased demand for residential properties in Kenya’s coast has seen prices soar by more than 400pc with the market now rivaling properties in Nairobi City where wealth is concentrated.

According to property consultancy firm, Knight Frank unimproved properties such as those in Nyali Beach are commanding three times the price of comparable beachfront locations with recent sales of unimproved one-acre beachfront estates in both Diani Beach and Watamu, fetching approximately Ksh 40 million per property.

“Mombasa contributes 4.9pc to Kenya’s GDP, versus Nairobi’s 27.5pc, but the desirability and strategic location of the Kenyan Coast makes it a property market that is as significant as the capital city. The values for its prime properties fully align with Nairobi valuations, and for those willing to move off the beaten track, there are some outstanding hidden gems along the coast,” said Mark Dunford, Chief Executive Officer Knight Frank Kenya.

Recent transactions also show beach front properties in Nyali continue to command the highest home prices at the coast with unimproved property fetching for as much as Ksh 120 million.

The price range places Nyali Beach homes in the same range as Nairobi, where the prices of prime unimproved properties typically range from Ksh 50 million to Ksh 200m per acre, the firm stated.

“The coast remains a very stable market, with frequent opportunities for stunning properties and locations. Our sales data indicates that affordability increases and buyers are increasingly willing to consider locations further from major towns, including fringe areas. This trend often results in more favourable pricing compared to prime, central locations” added Tarquin Gross, Head Residential Agency, Knight Frank Kenya.

In Kimabala Beach band Kilifi Bofa Beach which are further from the city and boasts lesser local facilities and services, beach-front properties are selling for around Ksh 30 million per acre.

On the other hand, beach properties set on or just beyond larger urban fringes are also commanding relatively lower transaction prices, with beach properties at Galu Kinondo Beach, just south of Ukunda and Diani Beach, selling for around Ksh 25 million per acre.

Website | + posts