Nairobi’s Kilimani suburb provided landlords with the best returns for apartments in the first half of 2018 and last year, a new housing survey shows.
The study by Cytonn that points investors to Kilimani as the location for strong returns as well as low risk says the suburb had the highest returns at 13.9 per cent compared to a market average of 8.2 per cent.
This was backed by its proximity to key business districts and nodes such as the Nairobi Central Business District and relatively good state of infrastructure.
“On the best areas to invest, Kilimani continues to offer the best investment opportunity for apartments driven by high returns and annual uptake of 13.9 per cent and 25.6 per cent respectively,” says the report.
Returns, uptake, infrastructure, amenities and distance from key business nodes gave the location the shine.
The residential sector recorded total annual returns of 8.2 per cent in the first half of this year, a 1.2 per cent points decline from the 9.4 per cent returns in 2017, the study says.
The average rental yield stood at 5.4 per cent. “Despite the decline, areas such as Kilimani, with good infrastructure and easy access to main business nodes, recorded double-digit returns per annum,” said Cytonn Real Estate’s senior research analyst, Patricia Wachira.
The report also ranked Karen and Runda Mumwe as the best for investment in detached units due to uptake, which stood at 27.7 per cent and 24.3 per cent, respectively.