Kenya's prime office market reaches 75% occupancy rate in H1 2024
Kenya's prime office market has achieved a 3.5 per cent rise in occupancy rate in the first half of 2024 to reach 75 per cent compared to a similar period last year. For more on the key factors driving growth in this market, CNBC Africa spoke to Marjorie Kivuva, Real Estate & Finance Partner at Tarra Agility Africa.
Fri, 26 Jul 2024 14:58:13 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Gradual return to work policies following COVID-19 lead to increased demand for prime office spaces in Nairobi.
- Scarcity of grade A office spaces contributes to a rise in occupancy rates to 75 per cent.
- Changing tenant profiles include global technology companies and service industries seeking modern industrial parks.
Kenya's prime office market has experienced a significant increase in occupancy rates in the first half of 2024, climbing by 3.5 per cent to reach 75 per cent compared to the same period last year. This growth can be attributed to several key factors, including a gradual return to work policy implemented by businesses following the COVID-19 pandemic. During the height of the pandemic in 2020, many companies allowed employees to work from home, leading to a decrease in demand for commercial real estate. However, as businesses now transition back to in-person operations, the demand for prime office spaces in Nairobi and its environs has surged. Additionally, the market has seen a limited supply of office spaces in recent years, particularly in the grade A category. This scarcity has driven up the occupancy rates to the current 75 per cent level. Despite an economic slowdown, the demand for prime office spaces continues to grow steadily.
