Kenya's real estate 2025 growth prospects and market outlook

Kenya's real estate sector has been on a trajectory of notable growth, with expectations to reach a value of $733.4 billion by 2024 and an anticipated market volume of $944.1 billion by 2029. This growth has been driven by a combination of factors, including interest rates, housing supply, and regional economic conditions. To delve deeper into what the year 2025 holds for the real estate sector, CNBC Africa's Tabitha Muthoni sat down with Mwenda Thuranira, CEO of MySpace Properties. Thuranira highlighted several key insights into the real estate market in Kenya, shedding light on the key players, investment trends, policy considerations, and potential challenges that lie ahead. One of the critical themes that emerged from the interview was the increasing interest from both local and international developers, financials, and retailers in the Kenyan real estate market. Thuranira noted the entry of Chinese developers who are spearheading affordable housing projects and working closely with local agents to drive market growth. Additionally, international retailers like Carrefour have been expanding their footprint in the country, signaling a growing demand for commercial real estate spaces. Thuranira also discussed the emerging investment hotspots in Kenya, highlighting areas like Rwaka, Kikuyu, and Dika as development hubs driven by improved infrastructure and accessibility to major cities like Nairobi. The conversation also touched on policy considerations, particularly the affordable housing program and the role of the private sector in meeting the housing needs of Kenyans. Thuranira emphasized the importance of focusing on housing solutions for the less fortunate and underserved communities, suggesting that private developers could play a significant role in bridging the gap in affordable housing. Looking ahead to 2025 and beyond, Thuranira underscored the evolving landscape of the real estate sector, pointing to the rise of mixed-use developments and the changing preferences of the younger population, who seek modern and flexible living spaces. He also discussed the need for professionalization and regulation within the real estate market, highlighting the low registration rates of real estate firms with professional bodies and the importance of training and structuring the industry for sustainable growth. As Kenya's real estate sector continues to evolve, Thuranira's insights offer a glimpse into the opportunities and challenges that lie ahead, shaping the future of the country's property market.