Ruaka leads in Nairobi Metropolitan apartment returns at 8pc

Alma apartments in Ruaka, Kiambu. PHOTO | FRANCIS MUREITHI | NMG 

By JAMES KARIUKI
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Summary

• Ruaka recorded a 91.9 percent occupancy rate with sales realised standing at Sh98,098 per square metre and rental price per square metre at Sh454.
• Apartments in Lang’ata followed at 6.8 percent where sales stood at Sh97,012 per square metre with rental apartments attracting Sh544 per metre square at an occupancy rate of 83.4percent.

Ruaka in Kiambu registered an eight percent yield in the second quarter of 2019, the highest recorded return for Nairobi Metropolitan rental apartments.

A report by Cytonn Real Estate says apartments in Ruaka recorded a 91.9 percent occupancy rate with sales realised standing at Sh98,098 per square metre and rental price per square metre at Sh454. Ruaka, which is served by the Northern Bypass, is set for better things with a planned Sh17 billion Western Expressway while the Northern Bypass is also earmarked for expansion into a dual carriageway. Ruaka has attracted massive multi-billion investments in malls, residential developments and factories giving it the new impetus for growth.

Apartments in Lang’ata followed at 6.8 percent where sales stood at Sh97,012 per square metre with rental apartments attracting Sh544 per metre square at an occupancy rate of 83.4percent.

The two were closely followed by apartments in Kitengela (Sh60,124 per square metre) for properties on sale while tenants rented premises at an average of Sh341 per square metres with premises registering a 76.3 percent occupancy rate.

“We retain a neutral outlook for the real estate sector mainly constrained by increased supply in the market and limited access to financing for both developers and off-takers. Pockets of value remain housing for lower-middle to low-income earner,” said Cytonn Research Analyst Juster Kendi.