Karen, Runda top performers in high-end market in 2016

Thursday January 12 2017

A house in the Karen suburb of Nairobi. PHOTO | FILE

A house in the Karen suburb of Nairobi. PHOTO | FILE 

Karen and Runda were the best performing high-end residential markets in 2016, thanks to the  continued relaxation of strict zoning regulations, their proximity to major shopping hubs and good infrastructure.

The Cytonn 2016 Real Estate Review said the two locations recorded total returns of 12.7 per cent and 11.3 per cent respectively.

Apartments in the upper middle-income segment in areas such as Kilimani and Kileleshwa recorded slower uptake and lower price appreciation due to oversupply.

Developments in areas such as Kikuyu and Ruaka recorded higher appreciation, driven by demand from institutional developers and homeowners seeking to capitalise on the opportunity afforded by the increased infrastructural development.

Overall, the real estate sector recorded total returns of 25.8 per cent, outperforming other asset classes in the year, supported by high demand from both individuals and institutional investors.