Best Places to Invest in Real Estate in Kenya

by | Oct 19, 2022

The real estate market is an ever-growing investment platform that has already caught wind in the Kenyan market. Whether investing in commercial or residential real estate, there are several key elements that are the backbone of any real estate property. One of the major elements to consider before investing is the location.

The location of the property is one of the most important aspects to consider before making any financial decisions. The site determines the type of property to develop and the target population who will eventually lease or buy the property. It would not be ideal to put up the residential property in the middle of a town, nor would it be practical to put up a commercial building in the middle of a residential street.

However, in Kenya, there are ideal locations whereby commercial or residential properties may be set up. These are the most ideal locations to invest in since any property will be optimal for the location.

Here is a list of ideal locations in Kenya to invest in real estate.

1. Nairobi satellite towns

While Nairobi is one of the best locations to invest in, it may be one of the hardest and not to mention the most expensive location to invest in real estate.

Luckily there are other locations that are within the proximity of Nairobi that may fit the bill perfectly without incurring the high prices of Nairobi town. These locations include; Kitengela, Thindigua, Ruaka, Athi River, Juja, Ngong, Kikuyu, and Thika.

Nairobi’s satellite towns are highly regarded as prime locations to invest in. These locations, however attractive they may be, have their pros and cons.


  • Lower overall costs of property compared to Nairobi. The cost of investing in Nairobi’s satellites is a fraction of the cost of investing in CBD.
  • The distance to Nairobi CBD is minimal. The locations are located at most 1 hour by vehicle from CBD.
  • Lower cost of living. The cost of everyday necessities like groceries is lower compared to Nairobi town.
  • Availability of space. CBD is a congested town that requires the residents to sacrifice some creature comforts unlike Nairobi’s satellites that has does not suffer from the drawbacks of limited living space.


  • A slow rate of development. The rate of development of Nairobi’s satellites is overall slower than in Nairobi. Thus amenities like roads may be undeveloped.
  • Water rationing. Some of the areas surrounding Nairobi experience water rationing from time to time.
  • Lack of efficient transportation systems. Some of the areas do not have adequate transportation systems and one can’t rely on the basis that everyone will drive.

2. Nanyuki

As a result of Kenya’s white settlers, the plains of Laikipia have turned into one of the most ideal locations for real estate investment.

Natural attractions like the Loldaiga Hills, the Aberdares, and Mount Kenyan are also major factors for the influx of real estate developers in the location. Laikipia is also a hub for big game conservancies like; El Karama, Borana, Lewa and Ol Pejeta.

With big projects like Mount Kenya Holiday Homes, Nanyuki has been established as an affordable location for investing in real estate. The location also has government projects underway that includes a resort city and an international airport.


  • Relatively affordable. The prices of property in Nanyuki are overall affordable compared to Nairobi and its satellites.
  • Plenty of property. Nanyuki has a plethora of land that real estate investors can purchase and plenty of the residents are willing to sell or lease their property.
  • High rate of development. Nanyuki is rapidly growing due to the influx of developers who have noticed the area as a gold mine opportunity.


  • Costs are rapidly increasing. Due to the numerous developers doubling up property at every corner, the prices of property are quickly rising to rival those of Nairobi’s satellites.
  • Low development coverage. While the development of the area is ongoing, there are certain areas in Nanyuki that are a long way to be developed.

3. Naivasha

Naivasha has in the past year developed into a great location for real estate investment. The availability of holiday resorts, natural lakes, wildlife and sceneries are majorly contributing to the demand for residences leading to the growth of developers in the area.

The location is on notice by tourists around the globe after the Aberdare Hills Golf Resort was proclaimed to be one of the Best Golf developments in Africa.

Developers concluded that the location is best suited for residential properties and this in turn drove the prices of land up. These are the advantages and disadvantages of investing in Naivasha;


  • A hub for tourists and residents. Naivasha has shown to have a ready market for both commercial and residential properties. The number of tourists and residents continues to rise and developers are in a rush to curb the demand.
  • Continuous development. The government has ongoing development projects that will ensure the overall growth of the market.


  • Rapidly growing prices. Naivasha experiences a high number of developers who are constantly struggling to obtain the best areas to invest in. This drives the prices of properties high at a fast rate.

4. Mombasa

Both Kenyans and foreigners have proven that there will always be a market for beachfront properties.

The development of residential and commercial buildings along the coastline is one of the most popular and profitable investments in the globe. Mombasa is considered the best location to invest in beachfront properties since the prices of the properties are steadily rising.

Developers determined that the beach is a great location to invest in residential properties due to the increasing rate of tourism in Mombasa.

There are some advantages and disadvantages of investing in Mombasa;


  • Readily available market. Mombasa has an influx of tourists and holiday visitors all year round. Thus making the area full of potential clients.
  • Steady growing markets. The prices of properties in Mombasa are growing at a steady pace and makes it easy for developers to project profits.


  • High prices. The costs of properties in Mombasa rival the cost of Nairobi CBD.
  • Competition for properties. Mombasa has no shortage of development companies which are willing to pay a premium to obtain prime properties.


Nairobi’s satellites, Naivasha, Nanyuki and Mombasa are locations that are experiencing growth in real estate development and thus make them prime candidates to invest in. However, there are other locations in Kenya that are also on the rise like Isiolo, Kisumu and Eldoret.