Kenya’s property market cooled in the second half of 2025, with prices showing little movement from the first six months of the year as developers grappled with rising supply in urban cores and a growing shift among buyers toward infrastructure-backed suburbs.
- •Data from the H2 2025 Property Index by BuyRentKenya shows minimal price movement between H1 and H2 across land, apartments and standalone houses, signaling a market in consolidation rather than contraction.
- •Improved road networks, sewer connectivity, land sizes, electricity, and comparatively lower entry prices are reshaping peri-urban areas from speculative frontiers into viable residential hubs.
- •Land prices were broadly flat nationwide, underscoring the asset class’s role as a defensive store of value for long-term investors.
“Kenya’s property market remains resilient and evolving, despite economic pressures,” Elizabeth Costabir, CEO of BuyRentKenya said. “While affordability continues to challenge many, data-driven decisions and strategic location choices are gradually reshaping homeownership possibilities.”
In Nairobi’s established nodes, land continues to command high premiums. Plots in Kilimani and Upper Hill now average around KSh 450 million to KSh 520 million. Prices in Eastleigh, historically buoyed by mixed-use demand, moderated slightly to about KSh 520 million, while parcels along the Kangundo corridor softened modestly.
In contrast, emerging peri-urban markets are attracting interest at lower entry points. Land in Juja and Isinya now averages KSh 30 million and KSh 6 million.
Along the coast, Mombasa’s land market remains steady, though below Nairobi’s levels. Prime plots in Mombasa’s Bamburi and Diani area is trading at about KSh 40 million and KSh 25 million, reflecting consistent buyer demand driven by tourism-linked development and middle-income relocations.
Apartments registered the clearest price shifts. In Nairobi’s core, prices in Kilimani and Westlands softened by 2–3% between H1 and H2, as new stock entered the market. A typical two-bedroom apartment in Kilimani now averages around KSh 10 million, while similar units in Westlands trade near KSh11.3 million. In Kileleshwa, two-bedroom units sit near KSh 9.5 million, and in Ruaka about KSh 7.8 million.
Two-bedroom units in Nyali and Bamburi, Mombasa’s most sought-after residential belts, are averaging KSh1.8 million to KSh4.7 million.
Standalone houses in peri-urban zones recorded moderate gains. Between H1 and H2, prices rose between 4% and 6% in Ruiru, Kitengela, and Juja, supported by infrastructure upgrades and the expansion of gated communities.
