The Office space supply in Nairobi has been growing at 23.6 percent Compound Annual Growth Rate (CAGR) between 2012 and 2018.
This has been driven by high rental yields in the commercial office sector of 8.1 percent in 2018, compared to the real estate market average of 7.4 percent.
The Cytonn Real Estate and Investment Company Research Analyst, Juster Kendi, said the positive performance was largely driven by political stability that led to an improved macroeconomic environment.
Kendi said the demand has been from growing small and Medium Enterprises (SMEs) and multinationals setting up operations in Nairobi.
Releasing the Nairobi Metropolitan Area Commercial Office Report 2019 on Monday, Kendi said the GDP grew to 6.0 percent in quarter 3 of 2018, higher than the 4.7 percent recorded in quarter 3of 2017.
“The positioning of Nairobi Metropolitan Area as a regional hub further increased entrance of multinationals creating demand for commercial offices,” Kendi noted. ………..Read More