80% of residential houses built in 2020 are in Nairobi

Market News

80% of residential houses built in 2020 are in Nairobi


Residential apartments in Upper Hill, Nairobi. FILE PHOTO | NMG

Summary

  • The result highlights the attractiveness of the capital as a residential destination in addition to its predominance in terms of capital and income.
  • The city continues to witness the construction of residential houses such as maisonettes, townhouses and luxury villas in the central areas as well as the outskirts.
  • In Nairobi, these houses are located in Runda, Lavington, Woodley, Syokimau, along Thika Road, Muthaiga and South C among others.

More than 13,000 residential homes were built in Nairobi in 2020, far outpacing developments in other towns and cities according to Statista data.

The result highlights the attractiveness of the capital as a residential destination in addition to its predominance in terms of capital and income. The city continues to witness the construction of residential houses such as maisonettes, townhouses and luxury villas in the central areas as well as the outskirts.

In Nairobi, these houses are located in Runda, Lavington, Woodley, Syokimau, along Thika Road, Muthaiga and South C among others.

“More than 16,200 new private buildings had been constructed in Nairobi, Kenya in 2020. Of these, residential constructions were the most numerous, some 13,200,” Statista said.

Nairobi led other counties in the number of new complete residential houses with 13,221, Kisumu at 582, Mombasa 504, Nakuru 484 and Uasin Gishu 332.

Of the 16,248 buildings, 3,027 were commercial houses built across the country and mostly in Nairobi CBD and the Westlands.

Mombasa had 170 complete trading houses while Kisumu had 61 at the end of the review period.

Other counties combined including Trans Nzoia, Kiambu, Nyeri, Kakamega, Embu, Machakos and Meru had 2,333 buildings completed, of which 1,932 were residences.

“The country’s capital recorded a much higher number of completed buildings compared to other counties. In Mombasa, Kenya’s second largest city, 504 new residential and 170 non-residential units have been completed,” Statista said.

Nairobi’s population has grown rapidly to over four million, creating a strong demand for housing. The rural exodus also continues to increase the size of the capital’s population.

Apart from jobs and business opportunities, Nairobi also attracts people seeking better healthcare, infrastructure, lifestyle and education.

Most new homes are built by private developers who sell them to wealthy and upper-middle-class households. Data from the Central Bank of Kenya shows that mortgage accounts stand at less than 30,000, indicating that the majority of houses sold by private developers are bought with cash.

A large volume of houses is also built by individuals for their own occupation, especially on the outskirts where land is relatively cheaper.

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