Kenya’s housing market is now one of the strongest in the world, delivering better investment returns than any other major property market, according to a new report by real estate firm HassConsult.
The study compared property prices and rental returns in 10 countries, including the USA, UK, France, Singapore, Australia, South Africa, and Canada. Kenya came out on top, thanks mainly to strong local demand.
Since 2000, the price of homes in Kenya has gone up by 425 per cent far higher than in the US (201 per cent), France (151 per cent), or Singapore (122 per cent). In the year to June 2025 alone, Kenya’s property prices rose by 7.8 per cent, the highest growth among all the markets studied. Australia came second, with 4.7 per cent growth.
HassConsult Co-CEO, Sakina Hassanali, explained that one big reason is how homes are bought in Kenya. Unlike in many Western countries, where most houses are financed through mortgages, less than 2 per cent of homes in Kenya use mortgages. Instead, most Kenyans buy properties outright.
This protects the market from the forced sales and price crashes seen in other countries when people cannot pay back loans.
At the same time, Kenya’s growing middle and upper class is driving demand. Rising incomes in education, health, trade, agriculture, and banking mean more Kenyans can afford to buy homes.
“While demand is falling in many Western and Asian countries due to shrinking populations, Kenya’s economy and population are expanding. This keeps property prices rising,” Hassanali said.
Kenya is also ahead when it comes to rental income. Rental yields the percentage a property earns back in rent each year stand at 5.5 per cent, which is above the global average. Combined with price growth, property owners earned an average return of 13.3 per cent in the year to June 2025.
Returns are even higher for Kenyans who buy off-plan properties, which are homes bought before construction is finished. The report looked at eight major off-plan projects and found an average return of 18 per cent in 2025.
“With off-plan deals, buyers get discounts and can pay in instalments, which makes them very attractive. The returns are more than double what investors are seeing in most global markets,” said HassConsult Development Sales Advisor, Ian Mutinda.
Over the past 10 to 15 years, the growth of Kenya’s wealthy class has fueled housing demand. Even though the number of expatriates has dropped due to stricter work permit rules, COVID-19 exits, and NGO cutbacks—local buyers have more than filled the gap.
High earners, including bank staff with mortgages and professionals in education, health, trade, and agriculture, are now the main drivers of demand. For instance, between 2020 and 2024, the education sector grew by 38 per cent, producing thousands of new high-income earners able to buy property.
These buyers often start by renting apartments before eventually buying homes, keeping the rental market strong as well.
One area still affected by global trends is detached houses, which are usually rented by expatriates and diplomats. When many of them leave, rents for these houses fall. However, unlike in the past, sales prices for detached homes have continued to rise up 10.9 per cent in the year to June 2025—thanks to strong demand from wealthy Kenyans.
Meanwhile, semi-detached houses and apartments continue to deliver some of the highest rental yields worldwide, reaching 7.5 per cent in early 2025.
The report highlights off-plan housing as Kenya’s most powerful driver of property investment. Buyers pay in stages while the property is being built, reducing reliance on bank loans. This model helps developers fund projects while giving investors early-bird discounts and higher returns.
For example, one-bedroom apartments bought off-plan in 2019 saw rental yields as high as 19 per cent and price appreciation of up to 78 per cent. Overall, off-plan projects delivered average annual returns of 18 per cent outperforming South Africa by 30 per cent and doubling the returns in most other markets.
Kenya’s property market has proven resilient to shocks, including the COVID-19 pandemic and international withdrawals. The combination of cash purchases, rising local incomes, and a strong off-plan sector has created a housing market that not only withstands global pressures but also outpaces the world in both price growth and investment returns.
