Apartment prices in Nairobi’s high-end areas and satellite towns have declined in the past three years in the wake of increased supply and a shift in buyers’ preference for stand-alone units.
The price of a top three-bedroom apartment in Eastlands and towns like Mavoko and Kiambu was Sh18 million as at the end of 2025, down from Sh21 million three years earlier, according to data from the Kenya National Bureau of Statistics (KNBS).
Apartments in high-end areas such as Lavington, Riverside and Karen reflected a similar pattern with a typical three-bedroom flat selling at Sh18.9 million down from Sh20 million three years earlier.
Prices of typical standalone houses across the different areas were higher, with the trend signalling a shift from apartments in favour of private units.
‘Apartments exhibit sustained downward pressure, which may be partly due to subdued market performance, weaker demand, possible oversupply in some urban segments and shifting buyer preferences,’ said KNBS.
Notably, a stand-alone house serving the same income classes rose over the same period. A three-bedroom house in upper Nairobi was selling at Sh23.5 million at the end of 2025, up from Sh20.25 million, while those in mid-income areas rose to Sh8.25 million from Sh8 million.
‘This increase reflects strong demand for standalone homes in suburban and peri-urban areas, supported by strong buyer preference and limited supply in some urban segments,’ added KNBS.
Analysts reckon the index does not indicate a change in price for developments that were already in the market, but lower entry prices for new projects in the middle of increased supply and lower demand, as the profile of residents in the areas changes.
‘Over time, we have had a price correction driven by oversupply in some segments. Land prices on the upper end have been high, so the only way to recoup has been through densification, resulting in the oversupply,’ said Johnson Ndenge, a real estate consultant.
‘Uptake of the upper end for investments has slowed down with fewer expatriates taking residency, and the locals buying in that segment prefer residing rather than renting,’ added Mr Ndenge.