Nigeria (Commonwealth Union)_Nairobi has surpassed London on a global index that analyses price trends in the top 5% of luxury residential properties in 45 cities worldwide, elevating Kenya’s capital to the status of a preferred investment destination in Africa.
According to the Prime Global Cities Index by realtor Knight Frank, Nairobi is the only African city listed among 45 global cities that experienced annual growth in the third quarter of 2022, with the city’s ranking rising seven places to 29 in the year to September from 35 in the same period last year. This was two ranks higher than London, which was placed 31, and one position below than Geneva.
The increase in Nairobi’s position comes after luxury properties saw a 2.9 percent increase in price from 1.3 percent over a 12-month period to September 2021–at a time when Kenya was still reeling from the COVID-19 outbreak. London saw a 2.7 percent increase in prices throughout the period, while Geneva saw a 3.2 percent increase.
Nairobi is a popular destination for expats and businesses looking to establish themselves on the African continent. It is home to the UNEP headquarters and serves as a regional hub for global corporations looking to grow into the region, increasing demand for luxury homes.
Even throughout the election season, demand for houses in high-end locations drove up luxury house prices.
“Buyers have a great desire to find good value properties. With COVID and elections, there hasn’t been much certainty in the last two years. Buyers are eager to deal now that that is all behind us,” said Tarquin Gross, head of residential agency at Knight Frank Kenya. “At the beginning of 2022, sellers were willing to accept up to 15% less than their asking price, and while sellers are no longer willing to accept as much as 15%, they are still open to offers.”
