Every few months in Nairobi’s upscale neighbourhoods of Kilimani, Kileleshwa and Lavington, an old bungalow disappears behind corrugated iron sheets as construction cranes move in to build yet another apartment block.
Today, balconies overlook neighbouring balconies, while some windows stare directly into living rooms across only a few metres of separation. Yet many of these developments are still marketed as offering “exclusive living”.
Traditionally, exclusivity had little to do with price. It meant low-density neighbourhoods, larger homes, mature gardens, fewer neighbours and enough space to provide privacy and quiet.
Today, developers increasingly define exclusivity through rooftop swimming pools, gyms, co-working spaces, concierge services and smart-home technology. While these amenities undoubtedly add value, they do not necessarily recreate the neighbourhood qualities that once defined Nairobi’s premier suburbs.
Real estate expert Johnson Denge says the meaning of exclusivity has gradually shifted.
“Exclusivity has become more of a marketing term,” he says. “It could refer to amenities exclusively provided for residents, the level of security or simply a way for developers to differentiate themselves in a competitive market.”
Developers argue that the apartment boom reflects the economics of Nairobi’s land market rather than competition for prestige.
“It is not necessarily competition on location. It is more about developers wanting to maximise returns because land is very expensive. For you to achieve the returns you are looking for, you have to intensify development,” Mr Denge says.
Land in neighbourhoods such as Kilimani and Kileleshwa now commands hundreds of millions of shillings, making low-density developments increasingly difficult to justify.
“You realise that land in places like Kileleshwa, Kilimani and similar areas can cost up to around Sh400 million. For developers to undertake projects that deliver meaningful returns, they are forced to maximise the number of units they can build,” he says.
A parcel that previously accommodated a single home now host dozens of apartments, allowing developers to spread land acquisition and construction costs across many buyers.
The result has been an unprecedented wave of densification across neighbourhoods once synonymous with spacious living.
The same economic forces driving higher-density developments are now contributing to falling apartment prices.
“They densify by putting up more apartments so that they can balance affordability for buyers while generating enough sales to recover their investment. The lower prices are mainly driven by high supply and weakening effective demand,” Mr Denge says.
Kenya National Bureau of Statistics (KNBS) data supports that trend. Apartment prices in Nairobi’s high-end estates fell 4.8 per cent in the year to March, while prices in middle-income estates declined 3.2 per cent as new developments continued to enter the market.
Many residential developers are now relying on discounts, flexible payment plans and other incentives to attract buyers for completed units.
The changing market has also altered the profile of apartment buyers. Although owner-occupiers remain active, Mr Denge says demand is increasingly being driven by investors with varying objectives, including landlords, speculators betting on capital appreciation and diaspora buyers seeking to invest back home.
Another major driver has been the rapid growth of short-term accommodation.
Short stay business has transformed apartments into income-generating assets, encouraging investors to purchase units specifically for holidaymakers and business travellers. However, as more investors entered the segment, returns have come under pressure.
“Many people who purchase these apartments convert them into Airbnb units, and that market is also beginning to experience price reductions because supply has increased,” Mr Denge says.
While many residents blame zoning changes for the rapid densification of Nairobi’s traditionally exclusive suburbs, Mr Denge argues that the regulations themselves are not the problem.
“The zoning regulations are very clear. They provide for plot ratios, plot coverage, setbacks and buffers. The challenge is enforcement,” he says.
He adds that exclusivity cannot exist in isolation.
“When you find that residents are living only a few metres apart, the lifestyle promised by the developer is sometimes not achieved, not necessarily because the developer failed, but because the development does not exist in a vacuum.”
Planning, he says, needs to extend beyond individual developments.
“There should be proper planning where developers are required to leave adequate space between apartment blocks and sufficient open spaces. Our planning rules tend to focus on setbacks from the main road, with very little consideration given to spacing between neighbouring developments.”
Despite the changing character of these neighbourhoods, Nairobi’s traditional uptown markets continue to attract investors.
Knight Frank’s Wealth and Investment Trends 2026 report notes that affluent Kenyans continue to view residential property as an important store of wealth.
Mr Denge expects future residential growth to shift beyond Nairobi’s traditional apartment hotspots.
“As infrastructure improves, we will see more development moving into satellite towns because land is relatively affordable, there is more room for expansion and infrastructure continues to improve within a 10 to 30-kilometre radius of Nairobi,” he says.
Areas such as Ruaka, Ruiru, Syokimau, Athi River and Kitengela are already attracting developers seeking lower land costs while remaining well connected to the city.
Mr Denge believes the current slowdown reflects a market correction rather than a long-term decline.
“Real estate markets have a way of regulating themselves because developers respond to demand,” he says.
He points to Nairobi’s office market, where years of oversupply eventually prompted developers to slow new projects in response to changing market conditions.