In 2023, Westlands attracted more office and real estate investors compared to other regions in the Nairobi Metropolitan Area (NMA) thus raising its rental yields.
This was largely contributed by attractive business atmosphere and good road network.
The average rental yields were 8.5 per cent which is 0.8 per cent higher than the average market which is 7.7 per cent.
This is according to Cytonn Investment 2024 Commercial Office report, which analyses the performance of the commercial office sector in NMA by focusing on the changes in occupancies, rental rates and rental yields providing a larger picture on the real estate market for investors.
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Gigiri came second recording an average rental yield of 8.2 per cent with Karen scooping the third position with an average rental yield of 8.0 per cent.
The prescence of multinational corporations, international organizations, and embassies in these areas increased the demand for quality offices in the region.
However, Mombasa Road emerged as the least-performing area, posting an average rental yield of 5.7 per cent, which was 2.0 points lower than the market average of 7.7 per cent.
According to the report, “The prevalence of lower quality office buildings in this area resulted in lower average rental rates, averaging at KSh 72 per square feet.”
“Other areas in the top ten were Parklands, Kilimani, Karen, Nairobi CBD, Upperhill and Thika Road.”
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