The Kenyan real estate market is currently presenting a complex mix of opportunities and challenges shaped by regional variations, economic pressures, and shifting consumer preferences. National housing availability has shown gradual improvement, with more residential projects entering the market compared to the supply crunch of recent years. However, demand continues to outpace supply in key urban areas, keeping property markets largely tilted in favor of sellers despite buyers’ growing sensitivity to pricing. Property prices have begun to stabilize in some regions, with year-on-year growth softening from the rapid surges seen in the last decade, creating a slightly more balanced environment for investors and homeowners. Regional Performance Performance varies significantly across the country. Nairobi remains the core driver, though different suburbs are moving at different speeds. Areas such as Westlands, Kilimani, and Lavington continue to attract high-end buyers and investors, though price growth has slowed as affordability becomes a growing concern. On the other hand, emerging satellite towns like Ruaka, Kitengela, Athi River, Thika, and Limuru are drawing both middle-class families and investors seeking affordability and long-term value appreciation. Mombasa and Kisumu remain important regional hubs, with a mix of commercial and residential growth driven by infrastructure development and diaspora investment. Luxury and Affordable Housing Segments Luxury markets in Nairobi’s prime neighborhoods are showing signs of saturation, with wealthy buyers becoming more selective and interest-sensitive due to tighter credit conditions. Meanwhile, the affordable housing segment is expanding rapidly, spurred by the government’s Affordable Housing Program and a rising demand from Kenya’s youthful, urbanizing population. This segment is increasingly shaping the future of residential real estate as developers pivot to smaller, more affordable units. Commercial Real Estate Kenya’s commercial real estate is experiencing divergent trends. Industrial and logistics properties are commanding strong interest, driven by e-commerce growth, regional trade, and infrastructural investments like the Nairobi Expressway and Standard Gauge Railway. Office spaces, especially in Nairobi CBD, Upper Hill, and Westlands, face pressure from oversupply and changing work models, with many firms downsizing due to hybrid and remote work adoption. Retail properties are undergoing a shift toward mixed-use and experiential developments, with successful malls integrating residential and entertainment components. Multifamily rental units remain resilient, buoyed by strong demand from younger demographics and urban migrants who are delaying homeownership due to affordability challenges.