2016 witnessed growth in all sub sectors

2016 was a good year for property in Nairobi.  Buildings whose construction began a few years ago were completed while the groundbreaking for a number of projects took place. Meanwhile, records from architectural firms show licenses have been issued for many more projects.

In April 2016, as economists pondered over the shaky state of the country’s economic growth, the National Environmental Management Agency (Nema) released a statement listing developments whose construction was either underway or scheduled to begin. They included shopping malls, skyscrapers and high-density residential properties on the outskirts of Nairobi. It was a shot in the arm for the property market.

In Westlands, Hurlingham, Upper Hill, Kasarani and the central business district, buildings comprising more than 25 floors were under construction. Car parking yards and retail parking spaces, some of which can hold 300 hundred cars, were under construction in the city and residential properties comprising more than 500 units each would be coming up on the outskirts of the city.

The owners?

International and local property firms, local investors, local blue-chip companies and local public institutions. The result of this has been a rapidly changing skyline that is now adorned with penthouses, glittering skyscrapers and above all, remarkable architectural designs.

The following are among the notable buildings completed in  the city and its satellite towns last yeat.

University of Nairobi Towers and green architecture

On December 5, 2016, China Wu Yi Construction Company handed over the keys to the newly completed University of Nairobi Towers to the institution’s administration. The 22-storey building is an artistic piece with a helipad at the top. It is the tallest building within any university in East and Central Africa.

Located at the University of Nairobi’s main campus right opposite the Norfolk Hotel, it is the culmination of work that began in 2013 under the supervision of lead consultants Waweru and Associates. The building is said to hold some of the best and largest lecture halls in the country, and can accommodate 3,000 students. It is an ultra-modern architectural structure that boasts smart/green architecture, which will ensure that when it is fully operational, it will achieve 100 per cent carbon neutrality.

Built at a cost of Sh2.3 billion mainly using internal funds and contributions from philanthropists, the building will also house the Manu Chandaria Centre for Performing Arts; the businessman donated the most.   

Meanwhile, in June 2016, Kenyatta University announced that it had entered into a partnership with a New York-based firm to build hostels to accommodate 10,000 of its students in Nairobi. The project, which is aimed at addressing student accommodation problems, will be undertaken by Africa Integras at a cost of Sh5 billion. Other learning institutions and universities also have ongoing construction projects in the city, although they are much smaller.

SHOPPING MALLS

Shopping malls have become a notable feature in the city’s landscape. People are drawn by the high roofs, the cool music from quality speakers, the hundreds of shopping booths/stalls that offer local and international brands, and  their spaciousness.

For many, shopping malls offer a chance to work, live, and shop in the same location. And for investment firms like Centum Capital, shopping malls have become a lucrative area to invest in. 

In September last year, Centum Capital announced the opening of its Two Rivers Mall. It is located on the upmarket Limuru Road, close to Runda, Muthaiga and Gigiri, and sits on 1.7 million square feet of land. It has rentable space of 700,000 square feet and as expected, leading international and local brands like Porsche, Standard Chartered Bank, Sidian Bank and Adidas have already set up shop. 

The September grand opening was cancelled and rescheduled to Valentine’s Day 2017. This delay notwithstanding, Two Rivers Mall is already East Africa’s largest shopping mall. In fact, Knight Frank’s Shop Africa 2016 report ranked Nairobi first in sub-Saharan Africa’s mall development. 

The mall is expected to accommodate over 200 shopping stalls, two hotels, office towers and a dolphin aquarium.   

Other new shopping malls include the Sh4 billion The Hub in Karen, which was officially opened in February 2016. Comesa Shopping Mall is also under construction in Nairobi’s Eastleigh.

CHURCHES AND MEGA CHURCH BUILDINGS

Church buildings in the country have become part of the most recognisable land marks.

Churches have always had  unique buildings, only that in the current world, they s are incorporating technology, setting up structures for extremely large groups of congregants and some are truly impressive. 

In August 2016, Faith Evangelistic Ministries, led by Rev Teresia Wairimu, opened its new church in Karen, the high-end surburb of Nairobi.

The worship centre, whose grand opening was attended by President Uhuru Kenyatta, boasts, among other things, a church hall that seats 4,000, movie theatre-like interior finishes, an installed state-of-the art communication system, executive offices and a dispensary.  

It is believed that the church was built at the cost of  about Sh1billion.

STYLISH PENTHOUSES FOR THE WEALTHY

Even though corporate bodies and learning institutions are leading the race to dominate Nairobi skies, residential properties have not been left behind.  They might not be going for the tallest, but they are going for the most stylish and classy.  Residential property owners are turning their attention to the needs of the affluent.

Last year saw a marked rise in the number of furnished penthouses all over Nairobi’s rich neighbourhoods. In estates such as Kilimani, Kileleshwa, Runda, Lavington, Muthaiga and Westlands the number of penthouses has gone up to cater for a growing demand by the wealthy who not only want their privacy, but also want it in style.  

Summer Breeze, for example, is a 34-apartment block in Kilimani, Nairobi with a five-bedroom duplex penthouse. The cost of a penthouse at Summer Breeze is Sh75 million. Ranging from 5,000-10,000 square feet, the penthouses offer magnificent views of the city, depending on the location. Acquiring or renting a penthouse is not cheap.

Adjusted for room number, renting a penthouse per month is often twice as costly as renting an apartment of the same size, probably in the same neighbourhood. A four-bedroom penthouse goes for Sh 450,000 a month according to property managers Knight Frank. The costs are high because of the exclusivity, security, the view and the experience that comes with owning or renting one.

A penthouse owner has access to a large, inbuilt entertainment area, a master bedroom with an indoor pool, a jacuzzi, rooftop terrace, rooftop garden, in-house spa, and personal security, among other features.  

UAP TOWERS AND THE RISE OF UPPER HILL AS A CORPORATE CENTRE

Standing163m tall, the 33-floor structure is the tallest building in the city. Officially opened on the July 5, 2016, it has become the undeniable king of the Nairobi skies, sometimes even taking on nationalistic roles during its brief existence. On Jamuhuri day, as Kenya turned 53, the UAP Towers, using an elaborate LED lighting system, was lit up in the colours of the national flag, and as December 31 drew near, the building’s management announced that it would became the first building in Kenya to lead a New Year’s countdown with the time ticking off on its walls as it counted down seconds to 2017.

Owned by UAP Old Mutual Holdings, it was built at a cost of Sh4 billion and as at the opening date, 50 per cent of the rentable 29,000 square metres had been occupied.

UAP Towers is first among a sizeable number of buildings that were completed in 2016. Others include the Britam Centre/Tower, also located in Upper Hill, which has 31 floors and serves as the headquarters of the financial giant. Other companies that built remarkable offices in Upper Hill are the Kenya Commercial Bank with its 24-floor development. Meanwhile, Hass plans to build Africa’s tallest building, Hass Tower, in Upper Hill. Preparations have started at the site of the 66-floor building.

Last year seemed to confirm Upper Hill as the favourite corporate location. Leading firms in Kenya either have their headquarters in Upper Hill, or are in the process of building offices in the area.  A substantial number have also moved to acquire or rent space in the area. Multi-national firms also seem to like  Upper Hill, with  leading international brands such as  Radisson Blu (hotels), Coca Cola and the World Bank having offices in the area.

RESIDENTIAL PROPERTY

At the end of the second quarter of 2016, the House Price Index report showed that there is an annual demand for at least 250,000 housing units per year in the country yet out of that, only 50,000 units were available.  This mismatch in demand and supply, especially in urban centres, has seen an increase  in low-income residential housing. The mismatch, coupled with the tax relief that was offered to “cheap” residential unit developers when President Uhuru Kenyatta signed the Finance Act of 2016 into law in September, has effectively spurred the residential property development sector into action.

 As at the moment, Umoja, Kayole, Buruburu, Westlands, Ayany, Parklands, Lang’ata and other estates on the outskirts of the city are witnessing a marked increase in residential properties.