Kenya has East Africa's most developed property market, with a deep Nairobi apartment sector, a coastal holiday market and a diaspora that keeps sending money home. City-centre prices average about $966 per m² (2023) with a 7.1% gross yield (2024), but borrowing costs are high. Use the Kenya property market data below before reviewing property for sale in Kenya.
Price levels
City-centre homes average $966 per m² (2023). The dataset also contains an outside-centre figure of $1,313 per m² but it is dated 2019 and sits above the centre, so we do not use it. Average monthly net salary is about $404 (2024), and the price-to-income ratio is 12.1 (2024).
Nairobi's western suburbs and satellite towns have received most new apartment supply; Mombasa, Diani and Kilifi are the main coastal markets. Many Kenyan buyers purchase land first and build over time. For the lower end, see cheap properties in Kenya.
| Indicator | Value | Year |
|---|---|---|
| Price per m², city centre | $966 | 2023 |
| Price-to-income ratio | 12.1 | 2024 |
| Gross rental yield, city centre | 7.1% | 2024 |
| Price-to-rent ratio | 14.1 | 2024 |
| 1-bed rent, city centre | $436 | 2024 |
| Mortgage rate, 20 years | 14.3% | 2023 |
Yields versus the cost of money
A 7.1% gross yield (2024) and a price-to-rent ratio of 14.1 look strong, and a one-bedroom in the centre rents for about $436 a month (2024). But the 20-year mortgage rate was 14.3% (2023) and the lending rate 16.6% (2024). Anyone borrowing locally pays more than the rental yield, so most investors buy with cash or foreign funds. Treasury bills also pay competitive rates, which raises the bar for property.
Net yield falls after service charges, vacancy, management (often 8 to 10% of rent) and rental income tax. See the Kenya financing guide.
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Economy
GDP is about $136 billion and grew 4.6% (2025). Inflation was 4.1% (2025), unemployment 5.4% (2025) and government debt is 67.3% of GDP (2024). The population of 57.5 million is growing 1.9% a year. VAT is 16% (2026) and corporate tax 30% (2024). The corruption index is low at 31 (2024).
Debt service pressure and tax increases have been politically sensitive, including protests over the finance bill. Remittances and services exports support the shilling, which has been steadier lately.
Kenya pays a high yield because money is expensive; a buyer who borrows locally gives most of that yield straight back to the bank.
Foreign ownership and due diligence
Foreigners can hold leasehold interests of up to 99 years, with freehold generally reserved for citizens. Land title searches at the Ministry of Lands, checking for double-sale and fraud, are essential, as are surveys and agricultural-land consent where relevant.
- Use an advocate you choose and pay for.
- Never pay the full price before a search and sale agreement.
- Check service charge and sinking fund on apartments.
- Capital gains and stamp duty apply on transfer.
Our Kenya buying guide walks through the steps.
Outlook
Urbanisation, a young population and a growing middle class are structural drivers. Oversupply in some Nairobi apartment pockets and tight credit limit price gains. Choose location, title and service-charge quality carefully, run the numbers with the mortgage calculator, and check properties under $100k in Kenya for entry-level options.
Last updated 8 October 2026